NEW YORK, Jan 27, 2026, 8:43 PM EST — Market closed.
- Carvana ended the day 0.9% higher at $477.75, following a volatile session.
- Wells Fargo boosted its price target to $525, maintaining its Overweight rating.
- Options flow indicated a surge in put buying ahead of the Fed decision and Carvana’s earnings report on Feb. 18.
Shares of Carvana Co. ticked up Tuesday, finishing 0.85% higher at $477.75, after moving between $463.49 and $484.42 during the session. In after-hours trading, the stock held steady around $477.7. (ChartExchange)
The jump mattered mainly because it triggered another wave of analyst target increases, the kind of boost that can hold momentum stocks close to their highs ahead of a catalyst.
Carvana is trading as a rate-sensitive name now — blending consumer and credit risks — with the next few sessions set to test it. The Federal Reserve wraps up its two-day meeting on Wednesday, and Carvana’s earnings report is still a few weeks away.
Wells Fargo’s David Lantz bumped Carvana’s price target to $525 from $500, keeping his Overweight rating intact. He flagged quarter-to-date data suggesting a “retail unit beat,” though cautioned that Winter Storm Fern might stir up some short-term volatility. (TipRanks)
Carvana, which sells used cars online and frequently handles financing, draws investor attention to both sales volume and funding conditions. Shifts in interest rates can rapidly change sentiment—sometimes well before any company updates hit the wires.
Options trading signaled caution. Puts outnumbered calls, driving the put/call ratio — a basic measure of downside protection — to 2.67, well above the usual level around 1.34, according to TipRanks data. Implied volatility held steady at a high level, with the market anticipating a daily price swing near $21.78. (TipRanks)
Such positioning tends to amplify reactions to headlines, even if the stock’s cash-market shift seems slight. When puts dominate, it usually means investors are buying protection, not betting on gains.
Carvana announced last week that it will release its fourth-quarter and full-year earnings on Feb. 18 after the market closes. The company will hold a conference call at 5:30 p.m. ET. (Carvana Investor Relations)
Traders will be watching closely for signs on demand and execution before then — tracking unit trends, per-vehicle profit, and whether the company is ramping up promotions or marketing to sustain growth.
The risk scenario is clear: a drop in used-car demand, tighter financing, or weather-related logistics issues could push the company below volume or margin targets. Given that options-implied volatility is already high, any letdown might sting more than usual.
Wednesday brings the next key event: the Fed’s policy decision at 2:00 p.m. ET, followed by a press conference at 2:30 p.m. ET. After the announcement, focus shifts to Carvana’s earnings and guidance for Feb. 18. (Federalreserve)
