Buy Carvana Now: Insider Selling Masks a Once-in-a-Decade Opportunity!

In the volatile world of investing, the best opportunities often arise when fear and doubt clash with undeniable fundamentals. Carvana Co. (CVNA) is currently in the eye of this storm—its stock soaring 40% year-to-date, yet executives like Lead Director Michael Maroone have taken profits. But here’s why this is a contrarian buy signal, not a red flag.

The Insider Sale? Call It "Profit-Taking" — Not "Fear-Selling"

Let’s start with the elephant in the room: Maroone’s $2.5 million sale of 9,000 shares in May. Critics will cry “insider panic,” but the truth is far simpler.

Why this sale isn’t a problem:
- The stock had already surged 40% in 2025 before the sale, fueled by five straight quarters of EPS beats and a 38.26% revenue jump in Q1. Maroone’s move was a textbook example of locking in gains after the stock hit near-52-week highs.
- He still retains $39 million in Carvana shares, making him a 100% committed stakeholder. This isn’t a “sell everything” moment—it’s a “trim the tree” decision.
- No prearranged trading plan (10b5-1) was used, but why? Because the stock’s upward momentum was too strong to ignore. Executives don’t abandon stocks they believe in—they cash in when the math is right.

The Fundamentals? They’re On Fire — And Ignoring Them Is a Mistake

Let’s cut through the noise and look at what truly matters: Carvana’s business is thriving.

• 5Q EPS Beats: The company has beaten earnings estimates in every quarter since 2023, with Q1 2025 EPS soaring to $1.51—nearly doubling analyst expectations.
• Revenue Explosion: $4.23 billion in Q1 revenue, up 38% year-over-year, with used car sales hitting a record 133,898 units. This isn’t a flash in the pan—it’s a sustained growth story.
• Tariff Tailwinds: As new car prices soar due to global tariffs, consumers are flocking to Carvana’s $30,000 used car sweet spot. This isn’t a fad—it’s a secular shift toward e-commerce-driven auto sales.

Why Insider Ownership Matters — And Why It’s Still Strong

Critics will point to insider selling, but let’s put this in perspective:

• 1.8% Insider Ownership: While executives have sold shares periodically, their net holdings remain massive. Maroone’s $39 million stake is just one example—others like CFO Ben Huston and COO Paul Breaux still hold millions.
• Analyst Backing: Firms like RBC and Citigroup have raised price targets to $340, implying a 30% upside from current levels. These aren’t “hype” numbers—they’re based on Carvana’s 13.5% EBITDA margin goals and its path to 3 million annual sales.

The Contrarian Play: Buy the Fear, Sell the Doubt

Here’s why now is the time to act:

1. Valuation vs. Growth: Carvana’s P/E of 97 looks high, but its 46% revenue growth rate and $373 million net income in Q1 justify it. Compare this to a typical automaker’s P/E of 15-20—it’s a growth premium, not a bubble.
2. Market Share Capture: The used car market is a $1.2 trillion behemoth, and Carvana is digitizing it. Its automated vending machines and “no-haggle” pricing are eating into dealerships’ dominance.
3. Short Interest Decline: Shorts are fleeing—the stock’s short interest has dropped 15% in 2025, signaling waning pessimism.

Final Call: Don’t Let FOMO Miss This Rally

Carvana is a once-in-a-decade disruptor in a $1.2 trillion industry. Yes, there’s risk—the stock could pull back 10-15% on volatility. But here’s the truth:

• $340 is the ceiling now, not the floor. Analysts see it hitting there by year-end.
• Used car demand isn’t slowing. Tariffs and inflation are here to stay—Carvana’s model thrives in this environment.
• Insider selling? It’s a buying signal for the rest of us.

Action Plan:
- Buy now on any dip below $280.
- Set a target of $320+ for a 12-month horizon.
- Ignore the noise about “overvaluation”—this is a growth stock, not a value play.

In the words of the Mad Money Man himself: “When everyone’s scared, that’s when you get rich.” Carvana’s fundamentals are too strong to ignore. This isn’t a gamble—it’s a contrarian bet on the future of car buying. Don’t miss it.

Final Note: Always consult your financial advisor before making investment decisions. Past performance does not guarantee future results.