On July 29, Carvana Co. fell 3.13% in after-hours trading, trading at approximately $65.68 per share. The decline came immediately after the company released its quarterly earnings report following the regular session close.

Ahead of the earnings release, the stock had rallied sharply as investors positioned for strong growth figures — rising 4.85% intraday on July 27 and another 3.07% intraday on July 29. Market consensus had expected revenue of $6.895 billion, representing 50.24% year-over-year growth, and adjusted EPS of $0.42, up 46.09% year-over-year. The after-hours pullback suggests that bullish expectations had been fully absorbed into the stock price during the pre-earnings run-up.

Adding to the multi-directional sentiment, Bank of America recently lowered its price target on the stock to $75 from $88, while RBC Capital Markets reduced its unit gross profit estimates citing slightly less favorable securitization conditions quarter-over-quarter, including a 66-basis-point decline in excess spread and a 50-basis-point increase in over-collateralization targets.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)