Mark W. Jenkins, CFO of Carvana Co. (CVNA), recently accumulated shares worth $37.71 million of the used car retailer. This is the first big Informative Buy transaction of the CFO this year. Other than this, Jenkins has undertaken several Uninformative Buy/Sell trades of the stock under various stock option plans to date. When a corporate insider buys shares of the company, it usually hints at a favorable growth potential of the company’s future.
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Carvana operates an e-commerce portal that brings together buyers and sellers of used vehicles in the U.S. Year-to-date, CVNA shares have zoomed over 351%, backed by stellar earnings and sales growth. Carvana has exceeded analysts’ earnings estimates in six out of the past eight quarters.
A Closer Look at the Insider’s Transactions
As per Form 4 filed with the SEC on November 6, Jenkins made multiple buy and sell trades of CVNA shares between November 4 and November 6. These shares were part of the CFO’s Stock Options and Class B Units trades, which were made under a Rule 10b5-1 trading plan adopted by the CFO on August 5, 2024.
The CFO also sold 268,495 CVNA shares during the same time period, yielding roughly $60.96 million.
CVNA stock currently has a Positive Insider Confidence Signal on TipRanks, based on Informative Buy transactions worth $43 million undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is CVNA a Good Stock to Buy?
Following Carvana’s better-than-expected Q3 FY24 results and promising future outlook, many analysts lifted the price target on the stock. On TipRanks, CVNA stock has a Moderate Buy consensus rating based on seven Buys versus ten Hold ratings. Also, the average Carvana price target of $238.12 implies that shares are almost fully valued at current levels.
