What's Going On With Carvana Stock?

Carvana Co. CVNA shares are trading higher Tuesday. The stock appears to be moving on continued upward momentum from the last five days. Here's a look at what's going on.

What To Know:

Carvana shares continue to draw the interest of retail investors due to the high short interest in CVNA and its "meme stock" status. Short interest in CVNA remains remarkably high with 53.23% of shares being sold short, according to data from Benzinga Pro. Retail investors helped to fuel a recent short-squeeze of Tupperware Brands Corporation TUP shares which appears to a driving broader interest in the "meme stock" sector.

Last Thursday, Carvana announced that it had raised $225 million through the issuance of approximately 4.9 million shares through its at-the-market equity offering program and stated that the company has no plans for an underwritten equity offering at this time.

"We are pleased to announce that we have successfully raised $225 million through our at-the-market offering program, fulfilling the public issuance commitment of our exchange offer transaction support agreement," said Mark Jenkins, CFO of Carvana. "Our liquidity position is strong, and any further issuance under the program would be purely opportunistic. We have no plans for an underwritten equity offering at this time."

On Monday, Jefferies analyst John Colantuoni downgraded Carvana from Hold to Underperform and lowered the CVNA price target from $55 to $30.

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CVNA Price Action: According to Benzinga Pro, Carvana shares are trading 4.36% higher at $47.96 at the time of publication.

Image: Courtesy of Carvana Co.


 

 

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