“Big Move” Carvana Announces First-Ever Stock Split to Make Shares Accessible

FomoAnxiety · 2026-03-13T16:27:25+00:00

Carvana has announced a 5-for-1 stock split to make shares more accessible following a strong rally in stock prices. Analysts remain optimistic, citing growth potential but also note risks associated with market fluctuations.

FomoAnxiety

2026-03-13 16:27:25

Geração de resumo em curso

Carvana CVNA +0.10% ▲ has announced its first-ever stock split in the company’s history. The online used‑car retailer said its board approved a 5‑for‑1 forward stock split to lower the share price and make shares more accessible to employees and retail investors.

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The split comes after a multi-year rally that pushed Carvana stock to record highs, driven by strong unit growth and improving profitability. CFO Mark Jenkins said the decision reflects the company’s commitment to keep shares within reach for all team members, especially as Carvana continues expanding its equity‑based compensation programs.

Under the plan, each shareholder will receive four additional shares for every one share held, pending approval at the company’s May 5 annual meeting. If approved, the stock will begin trading on a split‑adjusted basis on May 7.

After the split, the share price would drop to roughly $60 from about $300 at present.

William Blair Analyst Impressed with CVNA’s Growth

William Blair analyst Sharon Zackfia reiterated her Outperform rating on Carvana, highlighting the company’s plan for a 5‑for‑1 stock split. She remains bullish on Carvana’s long‑term growth, noting the company’s rare pace of expansion with a targeted 20%-40% CAGR in retail units over the next decade.

Despite temporarily higher reconditioning costs, she views Carvana as the most profitable player in its category and believes it is strengthening its competitive moat.

However, she also noted some risks, such as managing fast‑depreciating assets, potential pressure on finance income in a weaker credit environment, and the economic sensitivity of selling high‑ticket items.

Is CVNA a Good Stock to Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on CVNA stock based on 14 Buys and three Holds assigned in the past three months. Further, the average Carvana price target of $449.94 per share implies 53.19% upside potential.

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