Director Neha Parikh Acquires Shares of Carvana Co (CVNA)
On March 1, 2024, Neha Parikh, a Director at Carvana Co (NYSE:CVNA), purchased 1,300 shares of the company, as reported in a recent SEC Filing. This transaction marks a notable insider buy for the company, which operates an e-commerce platform for buying and selling used cars.
Carvana Co provides a detailed and transparent vehicle purchase process, offering consumers a wide selection of used vehicles through its online platform. The company is known for its multi-story car vending machines and has been expanding its reach in the United States.
Insider transactions are closely monitored as they can provide insights into a company's internal perspective. An insider buy, such as the one executed by the insider, may suggest confidence in the company's future prospects or that the shares are undervalued according to the insider's assessment.
Over the past year, the insider has increased their holdings by 1,300 shares and has not sold any shares of Carvana Co.
The insider transaction history for Carvana Co shows a pattern of 1 insider buy and 5 insider sells over the past year.
On the valuation front, Carvana Co's shares were trading at $77 on the day of the insider's purchase, giving the company a market cap of $9.481 billion. The price-earnings ratio stands at 194.14, significantly above both the industry median of 16.84 and the company's historical median.
According to the GuruFocus Value assessment, with a stock price of $77 and a GF Value of $27.64, Carvana Co is currently significantly overvalued, with a price-to-GF-Value ratio of 2.79.
The GF Value is a proprietary intrinsic value estimate from GuruFocus, which is calculated based on historical trading multiples, a GuruFocus adjustment factor related to past performance, and future business performance estimates provided by Morningstar analysts.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
