Spruce House Investment Management LLC Raises Stock Position in Carvana Co. $CVNA

Spruce House Investment Management LLC boosted its stake in Carvana Co. (NYSE:CVNA) by 2.6% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 2,335,000 shares of the company’s stock after purchasing an additional 60,000 shares during the quarter. Carvana comprises about 26.2% of Spruce House Investment Management LLC’s holdings, making the stock its biggest position. Spruce House Investment Management LLC’s holdings in Carvana were worth $734,077,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Ascentis Independent Advisors bought a new position in shares of Carvana during the 1st quarter worth about $26,000. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in shares of Carvana in the 4th quarter valued at about $29,000. Farmers & Merchants Investments Inc. bought a new stake in Carvana in the 4th quarter valued at about $29,000. Annis Gardner Whiting Capital Advisors LLC increased its position in Carvana by 152.6% in the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 96 shares of the company’s stock valued at $30,000 after buying an additional 58 shares in the last quarter. Finally, Motiv8 Investments LLC acquired a new position in Carvana during the 4th quarter worth approximately $33,000. 56.71% of the stock is owned by institutional investors.

Carvana Stock Performance

Shares of CVNA stock opened at $60.43 on Monday. The firm has a 50-day moving average of $66.99 and a 200-day moving average of $71.53. The company has a market cap of $66.28 billion, a P/E ratio of 36.76, a P/E/G ratio of 13.57 and a beta of 3.46. The company has a debt-to-equity ratio of 1.05, a current ratio of 4.09 and a quick ratio of 2.57. Carvana Co. has a one year low of $54.46 and a one year high of $97.38.

Carvana (NYSE:CVNA) last released its quarterly earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share for the quarter, beating analysts’ consensus estimates of $0.32 by $1.37. Carvana had a net margin of 6.40% and a return on equity of 41.46%. The company had revenue of $6.43 billion for the quarter, compared to analyst estimates of $6.12 billion. Equities research analysts forecast that Carvana Co. will post 1.63 EPS for the current fiscal year.

Insider Transactions at Carvana

In other news, COO Benjamin E. Huston sold 50,000 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $68.55, for a total value of $3,427,500.00. Following the transaction, the chief operating officer owned 458,755 shares in the company, valued at $31,447,655.25. The trade was a 9.83% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director J Danforth Quayle sold 14,525 shares of the company’s stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $70.00, for a total value of $1,016,750.00. Following the completion of the transaction, the director directly owned 214,960 shares of the company’s stock, valued at approximately $15,047,200. This represents a 6.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 396,962 shares of company stock worth $28,525,088. Company insiders own 15.19% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. Needham & Company LLC reiterated a “buy” rating and issued a $120.00 price target on shares of Carvana in a report on Friday, June 5th. DA Davidson boosted their price objective on Carvana from $64.00 to $67.00 and gave the company a “neutral” rating in a report on Friday, May 1st. BNP Paribas Exane upped their target price on Carvana from $77.60 to $85.80 in a research report on Thursday, April 30th. Wells Fargo & Company reaffirmed an “overweight” rating and set a $85.00 target price (down from $95.00) on shares of Carvana in a research report on Tuesday, July 21st. Finally, Citigroup reiterated an “outperform” rating on shares of Carvana in a report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $92.65.

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.