Carvana (NYSE:CVNA) shares are rising on Friday after the company announced a 5-for-1 forward stock split aimed at making its stock more accessible to employees.
The board approved the split following strong stock appreciation and record units sold and profitability in 2025, marking the first stock split in the company's history. CFO Mark Jenkins said the move supports Carvana's long-standing focus on employee ownership through programs such as its discounted Employee Stock Purchase Plan.
The announcement comes as broader markets trade higher, with the S&P 500 and Nasdaq Composite posting modest gains.
Technical Analysis
Carvana is currently trading 9.6% below its 20-day simple moving average (SMA) and 21.9% below its 100-day SMA, indicating a bearish short-term trend.
Over the past 12 months, shares have increased by 77.96%, and they are currently positioned closer to their 52-week highs than lows, reflecting a strong longer-term performance.
The RSI is at 32.98, considered neutral territory, suggesting the stock is neither overbought nor oversold. Meanwhile, the MACD is -22.8691, with the signal line at -22.9011, indicating a bullish crossover since the MACD is above the signal line.
The combination of a neutral RSI and a bullish MACD suggests mixed momentum, indicating that while there is some upward pressure, the stock remains cautiously positioned.
- Key Resistance: $355.50
- Key Support: $285.00
Carvana is currently underperforming its sector, which is experiencing a 0.45% decline today. The Energy sector ranks last among all sectors, and despite a positive 30-day performance of 4.07%, it has struggled recently, which may be impacting Carvana’s stock performance.
Carvana is an e-commerce platform for buying and selling used cars. The company derives revenue from used vehicle sales, wholesale vehicle sales, and other sales and revenues, including sales of loans originated and sold in securitization transactions or to financing partners.
This stock split announcement is significant as it reflects Carvana’s commitment to making its shares more accessible to its employees, fostering a sense of ownership and aligning the interests of its workforce with the company’s growth objectives.
Earnings & Analyst Outlook
Carvana is slated to provide its next financial update on May 6, 2026 (estimated).
- EPS Estimate: $1.44 (Down from $1.51)
- Revenue Estimate: $6.07 billion (Up from $4.23 billion)
- Valuation: P/E of 34.6x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $470.18. Recent analyst moves include:
- Citigroup: Buy (Lowers Target to $465.00) (Feb. 20)
- Barclays: Overweight (Lowers Target to $450.00) (Feb. 20)
- DA Davidson: Neutral (Lowers Target to $320.00) (Feb. 19)
Top ETF Exposure
- T. Rowe Price Blue Chip Growth ETF (NYSE:TCHP): 4.06% Weight
- Invesco Dorsey Wright Momentum ETF (NASDAQ:PDP): 2.33% Weight
- Nuveen ESG Mid-Cap Growth ETF (BATS:NUMG): 4.34% Weight
Significance: CVNA carries significant weight in these funds. Any significant inflows or outflows to these ETFs will likely trigger automatic buying or selling of the underlying stock.
Price Action: Carvana shares were trading at $300.45 at the time of publication on Friday, according to Benzinga Pro data.
Image: Shutterstock
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