Carvana (CVNA) shares closed in the green on March 13 after the online used car retailer announced a 5-for-1 forward stock split — its first since inception in 2012. The announcement arrives just weeks after the company reported market-beating results for its Q4 on higher-than-expected vehicle sales.
Carvana stock has still been in a sharp downtrend amid broader market weakness. At the time of writing, it’s down about 38% versus its year-to-date high in late January.
Does It Warrant Buying Carvana Stock?
While a stock split doesn’t change the fundamental valuation of a company, it’s often viewed as management’s “vote of confidence."
By lowering the nominal price of its shares — moving it from north of $300 to roughly $60 only — Carvana is significantly lowering the barrier to entry for both retail investors and employees.
This increased liquidity often invites higher trading volume that drives the stock price higher.
Additionally, the timing is key; management noted the split follows a 2025 that saw all-time record for units and profitability, signaling leadership believes the company is poised for future growth.
This makes CVNA shares super attractive to own in 2026.
William Blair Maintains Rating on CVNA Shares
William Blair also reiterated its “Outperform” rating on Carvana shares on Friday. According to William Blair analysts, the split announcement aligns with CVNA’s broader mission of democratizing company ownership among its team members through its discounted Employee Stock Purchase Plan.
The move reflects a maturing company that has successfully transitioned from survival mode to an industry leader in growth and operational efficiency, the analysts added.
In a research note dated March 13, the investment firm also said Carvana’s underlying fundamentals (specifically its path toward 3 million annual units and improved EBITDA margins) remains the primary drivers for long-term value creation.
According to Barchart, the put-to-call ratio on options contracts expiring mid-June is skewed to the upside as well, with the upper price of about $383 signaling potential for 27% upside over the next three months.
How Wall Street Recommends Playing Carvana
Other Wall Street analysts agree with William Blair’s bullish view on Carvana, especially since its 14-day relative strength index (RSI) in the mid-30s signals that bearish momentum is now approaching exhaustion.
The consensus rating on CVNA stock remains at “Strong Buy,” with the mean target of about $444 indicating potential upside of a little under 50% from here.
This article was created with the support of automated content tools from our partners at Sigma.AI. Together, our financial data and AI solutions help us to deliver more informed market headline analysis to readers faster than ever.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
- Walmart v.s Costco: Which Is the Better Dividend Stock in 2026?
- Is Carvana Stock a Buy on New Stock Split Announcement?
- Palantir Is Now a Sports Betting Stock. Does That Make PLTR a Buy Here?
- Tesla’s China-Made EV Sales Just Nearly Doubled. Should You Buy TSLA Stock Now in Hopes of an Auto Business Rebound?
