Carvana stock rises after Wells Fargo target hike, but options traders lean defensive

NEW YORK, Jan 27, 2026, 8:43 PM EST — Market closed.

• Carvana closed up 0.9% at $477.75 after a choppy trading session.
• Wells Fargo raised its price target to $525, keeping its Overweight rating intact.
• Options flow showed a spike in put buying just before the Fed announcement and Carvana’s earnings release on Feb. 18.

Carvana Co. shares edged up Tuesday, closing 0.85% higher at $477.75. The stock fluctuated between $463.49 and $484.42 during trading. In after-hours, it remained close to $477.7.

The jump was significant mostly because it sparked another round of analyst target hikes, the type of lift that helps momentum stocks stay near their highs before a catalyst hits.

Carvana is now trading like a rate-sensitive stock, mixing consumer and credit risks. The coming sessions will be crucial. The Federal Reserve concludes its two-day meeting on Wednesday, while Carvana’s earnings won’t drop for several weeks.

Wells Fargo’s David Lantz raised Carvana’s price target to $525 from $500, maintaining his Overweight rating. He noted quarter-to-date figures point to a “retail unit beat,” but warned that Winter Storm Fern could trigger some short-term volatility. TipRanks

Carvana, the online used-car retailer that often arranges financing, grabs investor focus with its sales figures and funding environment. Changes in interest rates can quickly sway sentiment—often long before the company releases any official news.

Options activity pointed to caution. Puts outpaced calls, pushing the put/call ratio — a key gauge of downside hedging — to 2.67, significantly above the typical 1.34 mark, per TipRanks data. Implied volatility remained elevated, with the market pricing in a daily move around $21.78.

This kind of positioning often magnifies responses to headlines, even when the stock’s move in the cash market is minor. A dominance of puts typically signals that investors are seeking protection rather than wagering on upside.

Carvana said last week it plans to report its fourth-quarter and full-year results on Feb. 18, after the market closes. The earnings call is scheduled for 5:30 p.m. ET.

Before then, traders will zero in on demand indicators and execution details — focusing on unit trends, profits per vehicle, and whether the company is boosting promotions or marketing efforts to keep growth on track.

The risk is straightforward: a slump in used-car demand, stricter financing, or weather disruptions could drag the company below its volume or margin goals. With options-implied volatility already elevated, any disappointment could hit harder than normal.

Wednesday’s main event is the Fed’s policy decision set for 2:00 p.m. ET, with the press conference to follow at 2:30 p.m. ET. Attention will then turn to Carvana’s earnings report and guidance due on Feb. 18.

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