Carvana Shares Plunge 2.75% with $1.18B Trading Volume Ranking 67th as COO Sells Stake Amid Institutional Buying Surge

On August 5, 2025, Carvana (CVNA) closed with a 2.75% decline, trading at $360.79 per share. The stock recorded a daily trading volume of $1.18 billion, ranking 67th in market activity. Analysts highlighted the stock’s elevated debt-to-equity ratio of 2.51 and a beta of 3.57, reflecting heightened volatility relative to the broader market.

COO Benjamin E. Huston sold 10,000 shares of Carvana at $370.55 per share, reducing his ownership stake by 7.88%. The transaction, disclosed via an SEC filing, valued his remaining holdings at $43.3 million. Analysts noted the sale occurred despite a current average price target of $379.65, with 13 firms maintaining a “buy” rating and six a “hold” rating. Institutional investors, including J.Safra Asset Management and Farther Finance Advisors, increased their stakes by 140.8% and 333.1%, respectively, in Q1 2025.

Recent analyst activity underscored cautious optimism. Morgan Stanley raised its price target to $290, while Oppenheimer upgraded to “outperform” with a $450 target. Institutional ownership now accounts for 56.71% of the float, driven by large-scale purchases from entities like Vanguard Group and Price T Rowe Associates. These inflows contrast with the COO’s recent divestment, signaling mixed signals for short-term sentiment.

The strategy of purchasing the top 500 stocks by daily trading volume and holding for one day returned 166.71% from 2022 to present, outperforming the benchmark by 137.53%. This highlights liquidity-driven performance in volatile markets, where high-volume stocks like Carvana often see amplified movements due to institutional and algorithmic activity.