What's Going On With Carvana Stock?

Carvana Co CVNA shares are volatile Tuesday on the heels of an analyst upgrade from Jefferies.

What Happened: Jefferies analyst John Colantuoni upgraded Carvana from an Underperform rating to a Hold rating and raised the price target from $30 to $85.

Several analysts have raised price targets on Carvana stock since the company reported fourth-quarter financial results last month and said it was “stronger than ever.”

Carvana sold 76,090 vehicles in the fourth quarter and noted that it expected retail units sold in the first quarter to be "slightly up" on a year-over-year basis. 

Carvana shares are up nearly 50% year-to-date and are up more than 1,000% over a one-year period. The stock spiked again on earnings before Kerrisdale Capital released a new short report. The short seller claimed Carvana stock was moving like “an AI darling” and argued that it should be trading around $16 per share.

According to Benzinga data, the average rating on Carvana is Neutral and the consensus price target currently sits at $29.85 per share.

See Also: Inflation Rises More Than Expected To 3.2% In February, Rebuffs Expectations Of June Fed Rate Cut

How To Buy CVNA Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Carvana's case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

CVNA Price Action: Carvana shares were up more than 3% ahead of the open. The stock was slightly down at $77.06 at the time of publication, according to Benzinga Pro.

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