Carvana Co CVNA shares are trading lower Monday following bearish analyst coverage from Argus Research. Weekend reports also indicate the company is facing a "cash crunch."
What To Know: Argus Research analyst Taylor Conrad downgraded Carvana from a Hold rating to a Sell rating, citing valuation concerns due to declining used car prices.
Used vehicle prices have fallen 15% over the last nine months, representing the largest decline since 2008, according to the Manheim Used Vehicle Index.
A weekend report from the Wall Street Journal also indicates that Carvana is "rushing" to conserve cash as business conditions deteriorate. Analysts reportedly said the company could run out of cash in a year.
The news comes after Carvana laid off about 1,500 employees, or 8% of its workforce, at the end of last week, marking its second round of job cuts in the last six months.
Related Link: Carvana Faces Heat Of Slowing Demand, Higher Interest Rates
Carvana operates an e-commerce platform for buying and selling used cars.
CVNA Price Action: Carvana has a 52-week high of $296.70 and a 52-week low of $6.50.
The stock was down 10.4% at $7.21 at time of publication, according to Benzinga Pro.
Photo: Tony Webster from Flickr.
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