Carvana Co. (NYSE:CVNA) shares are edging up on Friday morning. This follows an over 400% surge during Thursday’s session. This move is a purely mechanical adjustment.
Stock Split Details
The company executed a 5-for-1 stock split effective at today’s market open. Shares closed near $400 on Thursday.
They opened on Friday around the $81 mark. Investors now hold five times as many shares as before, but the total value of their holdings remains unchanged.
Liquidity and Share Count
Shareholders previously approved the split and an increased authorized share count. Splits don’t change the underlying business.
However, they often change trading dynamics by lowering the per-share price. This move aims to increase liquidity for retail traders.
Strong Earnings Context
The split follows a robust first-quarter earnings report. Carvana reported revenue of $6.43 billion. This beat analyst’s estimate of $6.08 billion. The company also posted earnings of $1.69 per share.
Critical Levels To Watch for CVNA Stock
CVNA is trading above its 20-day SMA ($77.56), 50-day SMA ($68.54), 100-day SMA ($76.15), and 200-day SMA ($73.80), keeping the intermediate trend pointed up even after recent volatility.
The stock is also about 19% above its 50-day SMA, which tells you the move has had real extension and can be more sensitive to pullbacks.
Two cross-currents stand out: the 20-day SMA is above the 50-day SMA (bullish near-term structure), but the 50-day SMA remains below the 200-day SMA after the death cross in March (a longer-term overhang).
CVNA Price Action: Carvana shares were up 1.93% at $81.55 during premarket trading on Friday, according to Benzinga Pro data.
Photo: Jonathan Weiss / Shutterstock
Recent Comments