Carvana Co (NYSE:CVNA) stock is choppy this morning, last seen near trading breakeven at $313.70, after a Bank of America downgrade to "neutral" from "buy" and slashed its price target to $360 from $400. The brokerage cited the impact higher energy prices may have on middle-income consumers, in addition to the uncertain outlook for interest rate cuts.
Analysts lean bullish, indicating more bear notes could be in store. Coming into today, 18 of the 23 firms in coverage carried "buy" or better ratings, and the 12-month consensus target price of $418.20 is still a 32.2% premium to current levels. Meanwhile, short sellers are in control, with 9.5% of Carvana stock's available float sold short.
CVNA last week hit its lowest level since May, and has struggled with overhead pressure at $320 since early March. The equity has already shed 26.2% so far in 2026, and is fresh off its third-straight monthly loss after also marking its first negative quarter since March 2023.
An unwinding of optimism in the options pits could pressure CVNA even lower. This is per the security's Schaeffer's put/call open interest ratio (SOIR) of 0.60, which sits in the 8th percentile of its 12-month range.
