Senator Investment Group LP Increases Stock Position in Carvana Co. $CVNA

Senator Investment Group LP raised its stake in shares of Carvana Co. (NYSE:CVNA) by 516.5% in the 2nd quarter, Holdings Channel reports. The firm owned 1,137,870 shares of the company’s stock after acquiring an additional 953,296 shares during the period. Carvana makes up 2.7% of Senator Investment Group LP’s investment portfolio, making the stock its 12th largest holding. Senator Investment Group LP’s holdings in Carvana were worth $74,895,000 as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in CVNA. Sands Capital Management LLC raised its holdings in shares of Carvana by 44.4% during the 4th quarter. Sands Capital Management LLC now owns 2,442,534 shares of the company’s stock worth $1,030,798,000 after acquiring an additional 751,019 shares in the last quarter. Capricorn Fund Managers Ltd purchased a new position in shares of Carvana in the first quarter valued at $29,866,000. Gavilan Investment Partners LLC grew its holdings in shares of Carvana by 24.6% in the fourth quarter. Gavilan Investment Partners LLC now owns 86,000 shares of the company’s stock valued at $36,294,000 after purchasing an additional 17,000 shares in the last quarter. Swiss National Bank increased its position in Carvana by 9.9% in the first quarter. Swiss National Bank now owns 395,180 shares of the company’s stock worth $124,237,000 after purchasing an additional 35,720 shares during the last quarter. Finally, Hsbc Holdings PLC increased its position in Carvana by 239.6% in the fourth quarter. Hsbc Holdings PLC now owns 221,727 shares of the company’s stock worth $93,748,000 after purchasing an additional 156,430 shares during the last quarter. Hedge funds and other institutional investors own 56.71% of the company’s stock.

Carvana Price Performance

Shares of CVNA stock opened at $74.24 on Monday. The stock has a 50 day moving average price of $68.10 and a 200 day moving average price of $68.34. Carvana Co. has a 52-week low of $54.46 and a 52-week high of $97.38. The company has a debt-to-equity ratio of 0.94, a quick ratio of 2.33 and a current ratio of 3.93. The firm has a market capitalization of $81.70 billion, a P/E ratio of 41.06, a P/E/G ratio of 2.69 and a beta of 3.46.

Carvana (NYSE:CVNA) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.42 EPS for the quarter, beating the consensus estimate of $0.39 by $0.03. Carvana had a return on equity of 37.06% and a net margin of 6.26%.The company had revenue of $7.38 billion for the quarter, compared to the consensus estimate of $6.90 billion. During the same quarter in the prior year, the company posted $1.51 EPS. Carvana’s quarterly revenue was up 52.4% on a year-over-year basis. As a group, sell-side analysts predict that Carvana Co. will post 1.68 earnings per share for the current year.

Insider Activity

In related news, Director Ira J. Platt sold 15,000 shares of Carvana stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $75.50, for a total transaction of $1,132,500.00. Following the completion of the sale, the director owned 186,470 shares in the company, valued at $14,078,485. This trade represents a 7.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, VP Stephen R. Palmer sold 5,000 shares of the business’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $64.49, for a total transaction of $322,450.00. Following the completion of the sale, the vice president directly owned 136,909 shares of the company’s stock, valued at approximately $8,829,261.41. This trade represents a 3.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 302,147 shares of company stock valued at $20,418,064. Insiders own 15.19% of the company’s stock.

Analyst Ratings Changes

CVNA has been the subject of several research reports. Citigroup lowered their price objective on shares of Carvana from $93.00 to $90.00 and set a “buy” rating for the company in a research report on Friday, July 31st. DA Davidson set a $67.00 target price on shares of Carvana in a report on Thursday, July 30th. Argus decreased their target price on shares of Carvana from $500.00 to $100.00 in a research report on Monday, May 11th. Royal Bank Of Canada set a $82.00 price target on shares of Carvana and gave the company an “outperform” rating in a report on Thursday, July 30th. Finally, Barclays dropped their price target on Carvana from $94.00 to $93.00 and set an “overweight” rating for the company in a research report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $84.14.

Carvana Profile

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana’s model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.