The security is today taking a breather after a two-day rally
Online used car retailer Carvana Co (NYSE:CVNA) has been making a lot of noise this week. The equity has been in rally mode since Wednesday, when a retail trading frenzy helped CVNA add over 24%, and yesterday extended those gains with a 46% surge, as shares trended on social media trading website Stocktwits. Additionally, the Wall Street Journal today reported the company has been quietly laying off employees as it faces slowing sales.
Last seen down 8.6% at $7.37, Carvana stock has struggled with overhead pressure at the $10 region since November, and carries a hefty 95.1% year-over-year deficit. However, in the previous session retail traders helped CVNA close above the 40-day moving average for the first time since September.
The brokerage bunch is overwhelmingly bearish, with 21 of the 23 analysts in coverage carrying a tepid "hold" or worse rating. The security is heavily shorted, too. Short interest added 25.6% in the last two reporting periods, and the 54.10 million shares sold short now make up 56.5% of the stock's available float.