What's Going On With Carvana Stock?
Portfolio Pulse from Erica Kollmann
Carvana Co. (NYSE:CVNA) shares are trading higher, with the stock up more than 280% over the last three months. The company recently completed all equity capital requirements of its previously announced exchange offer transaction support agreement, raising $126 million of equity capital from existing shareholders Ernest Garcia II and Ernest Garcia III, CEO of Carvana. The transaction valued CVNA Class A common stock at $46.31 per share, an 18% premium to the closing price on Aug. 18. Shares of CVNA continue to draw outsized short interest with 46.47% of available shares being sold short.
August 28, 2023 | 4:02 pm
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Carvana's stock is trading higher, up more than 280% over the last three months. The company recently raised $126 million of equity capital, valuing CVNA Class A common stock at $46.31 per share, an 18% premium to the closing price on Aug. 18. Shares of CVNA continue to draw outsized short interest.
The stock is trading higher due to the successful completion of equity capital requirements and the raising of $126 million of equity capital. This has resulted in a significant increase in the stock's value. However, there is a high short interest in the stock, indicating that many investors are betting on the stock's price to fall.
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