Why Carvana Motored 3% Higher Today
Any time an industry is in turmoil, a company within it can see notable volatility in its stock price, with some movements making less sense than others. On Wednesday, one of the more up-and-down titles in the sector, Carvana (NYSE: CVNA), saw a counterintuitive rise. The company's share price ended the day 3% higher, despite yet another negative analyst note on its prospects.
That morning, Wedbush's Seth Basham reiterated his underperform (i.e., sell) recommendation on Carvana stock with a target price of $1 per share. For reference, that's quite a steep way down from the company's current level of $3.83.
On the back of recently sluggish sales, macroeconomic worries that affect consumer behavior, and the shenanigans around Tesla owner Elon Musk's Twitter misadventure, the automotive industry has been a glaring red light for investors. Dealership operators like Carvana have been some of the worst performers: The company's stock has lost a queasy 98% of its value year to date.
Source Fool.com
