January 3, 2025
Shares of online used car dealer Carvana (NYSE: CVNA) fell 11% in the afternoon session after short seller Hindenburg Research published a report accusing the company of "accounting manipulation and lax underwriting." In response, Carvana called the report "intentionally misleading and inaccurate."
The shares closed the day at $177.35, down 11.1% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Carvana? Access our full analysis report here, it’s free .
Carvana’s shares are extremely volatile and have had 49 moves greater than 5% over the last year. But moves this big are rare even for Carvana and indicate this news significantly impacted the market’s perception of the business.
Carvana is down 10.4% since the beginning of the year, and at $178.85 per share, it is trading 31.4% below its 52-week high of $260.80 from November 2024. Investors who bought $1,000 worth of Carvana’s shares 5 years ago would now be looking at an investment worth $1,928.
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. .
