What's Going On With Carvana Stock?

Carvana Co. CVNA shares are trading higher Tuesday, and the stock is up more than 30% over the past month. Here's a look at what to know. 

What To Know:

Evercore ISI Group analyst Michael Montani maintained an In-Line rating on Carvana and raised its price target from $68 to $75on Tuesday.

Carvana received two significant analyst upgrades earlier in March, one from Jefferies analyst John Colantuoni who upgraded Carvana from an Underperform to a Hold rating and raised the price target from $30 to $85.

RBC Capital also upgraded the stock from Underperform to Sector Perform and raised its price target from $45 to $90 on March 8. 

The RBC Capital analyst said the bear case for the stock has become “increasingly unprovable,” and Carvana’s recent rally has the potential to continue even higher. The analyst sees any meaningful unit growth leading to higher price gains, due in part to the outsized short-interest in the stock. 

According to data from Benzinga Pro, 41.86% of Carvana shares are being sold short. The stock is trading at new 52-week highs at the time of publication. 

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CVNA Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Carvana, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Carvana, the 200-day moving average sits at $44.87, according to Benzinga Pro, which is below the current price of $91.94. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

CVNA Price Action: According to Benzinga Pro, Carvana shares are up 5.33% at $93.15 at the time of publication Tuesday.

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