Block & Leviton Investigates Carvana for Potential Securities Violations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy CVNA?
Source: Globenewswire
- Stock Price Plunge: Carvana's shares fell over 20% during trading on January 28, primarily due to allegations from a Gotham City Research report that its profitability relies on undisclosed related-party transactions, leading to diminished investor confidence and potential further sell-offs.
- Investigation Launched: Block & Leviton is investigating whether Carvana violated securities laws and plans to file actions to recover losses for affected investors, demonstrating a commitment to protecting investor rights through legal avenues.
- Financial Issues Exposed: The report claims that DriveTime burned over $1 billion in cash while leveraging 20 to 40 times EBITDA to support Carvana's earnings, raising concerns about the transparency of such financial maneuvers and potentially attracting regulatory scrutiny.
- Whistleblower Incentives: Block & Leviton encourages whistleblowers with non-public information about Carvana to assist in the investigation, offering rewards of up to 30% of any successful recovery from the SEC, aiming to attract more insiders to disclose potential violations.
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Analyst Views on CVNA
Wall Street analysts forecast CVNA stock price to rise
18 Analyst Rating
16 Buy
2 Hold
0 Sell
Strong Buy
Current: 344.140
Low
360.00
Averages
475.88
High
550.00
Current: 344.140
Low
360.00
Averages
475.88
High
550.00
About CVNA
Carvana Co. is a holding company. The Company operates an e-commerce platform for buying and selling used cars. The Company primarily acquires used vehicle inventory directly from customers, used car auctions, and wholesale used vehicle suppliers, including retail marketplace partners. Once it acquires a vehicle, the Company leverages its in-house logistics network or a vendor to transport the vehicle to one of its inspection and reconditioning centers (IRC) or auction locations with reconditioning capabilities, at which point the vehicle enters its inventory management system. It offers a mobile-optimized Website, where prospective retail car buyers can immediately begin browsing, researching, filtering, and identifying their vehicle of choice, where it offers an annotated virtual vehicle tour, which includes a 360-degree view of the interior and exterior of the actual vehicle. The Company also offers integrated financing using its loan origination platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Real-Time Order Flow Analysis: Order flow analytics examine buying and selling trends from both retail and institutional traders by analyzing volume, timing, and order size, providing deeper insights into stock price behavior and market sentiment, enabling traders to make informed decisions.
- CVNA Price Performance: At the time of the Power Inflow signal, CVNA was priced at $338.2, and it reached an intraday high of $351.66, reflecting a 3.98% increase, which demonstrates the effectiveness of the signal and market response.
- Investment Risk Disclaimer: While the analysis based on order flow data offers market insights, the article emphasizes the risks of investing, including the potential loss of principal, and advises investors to consult licensed financial advisors before making investment decisions.
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