3G Capital Partners LP Acquires 30,000 Shares of Carvana Co. $CVNA

Key Points

• 3G Capital Partners LP increased its Carvana stake by 25% in the fourth quarter, buying 30,000 additional shares to bring its total to 150,000 shares. Carvana is now the fund’s second-largest position, representing about 14.9% of its portfolio.
• Carvana’s latest quarterly results beat expectations, with earnings of $1.69 per share versus the $0.32 estimate and revenue of $6.43 billion topping forecasts. Analysts still broadly remain positive, with a consensus rating of “Moderate Buy” and an average price target of $93.14.
• Despite the upbeat results, the stock fell 10.3% and recent insider activity was notable, as the CFO and COO sold shares in early April. The shares opened at $62.82, well below the 52-week high of $97.38.

3G Capital Partners LP boosted its holdings in shares of Carvana Co. (NYSE:CVNA - Free Report) by 25.0% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 150,000 shares of the company's stock after buying an additional 30,000 shares during the quarter. Carvana makes up approximately 14.9% of 3G Capital Partners LP's investment portfolio, making the stock its 2nd largest position. 3G Capital Partners LP owned approximately 0.07% of Carvana worth $63,303,000 at the end of the most recent quarter.

A number of other institutional investors also recently made changes to their positions in CVNA. Thurston Springer Miller Herd & Titak Inc. bought a new stake in shares of Carvana in the fourth quarter valued at approximately $29,000. Farmers & Merchants Investments Inc. bought a new stake in shares of Carvana in the fourth quarter valued at approximately $29,000. Motiv8 Investments LLC bought a new stake in shares of Carvana in the fourth quarter valued at approximately $33,000. Salomon & Ludwin LLC boosted its stake in shares of Carvana by 112.5% in the fourth quarter. Salomon & Ludwin LLC now owns 85 shares of the company's stock valued at $37,000 after buying an additional 45 shares during the period. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main bought a new stake in shares of Carvana in the second quarter valued at approximately $38,000. Institutional investors own 56.71% of the company's stock.

Insider Buying and Selling at Carvana

In other news, CFO Mark W. Jenkins sold 63,750 shares of the firm's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $62.07, for a total value of $3,956,962.50. Following the completion of the sale, the chief financial officer directly owned 985,445 shares in the company, valued at $61,166,571.15. This trade represents a 6.08% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, COO Benjamin E. Huston sold 50,000 shares of the firm's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $61.97, for a total value of $3,098,600.00. Following the completion of the sale, the chief operating officer owned 464,620 shares of the company's stock, valued at approximately $28,793,430.64. This represents a 9.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 415,812 shares of company stock worth $29,056,896 over the last 90 days. Company insiders own 15.19% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on CVNA shares. Evercore boosted their price target on Carvana from $78.00 to $80.00 in a research note on Tuesday, April 28th. Jefferies Financial Group lowered their price objective on shares of Carvana from $97.00 to $95.00 and set a "buy" rating for the company in a research report on Tuesday, April 14th. Citizens Jmp upped their target price on Carvana from $92.00 to $103.00 and gave the stock a "market outperform" rating in a research note on Friday, May 1st. William Blair restated an "outperform" rating on shares of Carvana in a research note on Friday, March 13th. Finally, Citigroup restated an "outperform" rating on shares of Carvana in a research note on Friday, May 1st. Two research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $93.14.

Carvana Stock Down 10.3%

Shares of CVNA opened at $62.82 on Thursday. Carvana Co. has a 52 week low of $54.46 and a 52 week high of $97.38. The stock has a market capitalization of $68.91 billion, a price-to-earnings ratio of 38.21, a PEG ratio of 11.82 and a beta of 3.45. The company has a debt-to-equity ratio of 1.05, a quick ratio of 2.57 and a current ratio of 4.09. The stock has a fifty day moving average of $71.47 and a 200-day moving average of $75.19.

Carvana (NYSE:CVNA - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The company reported $1.69 EPS for the quarter, beating analysts' consensus estimates of $0.32 by $1.37. The company had revenue of $6.43 billion during the quarter, compared to analysts' expectations of $6.12 billion. Carvana had a return on equity of 41.46% and a net margin of 6.40%. As a group, sell-side analysts anticipate that Carvana Co. will post 1.58 earnings per share for the current fiscal year.

Carvana News Summary

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana is expanding into new vehicle sales, with seven new-vehicle franchises already acquired; investors may view this as a meaningful growth opportunity that broadens the company’s addressable market. Carvana is expanding into new vehicles. The implications could reshape the U.S. automotive retail market
• Positive Sentiment: Analyst commentary remains constructive, with price targets implying notable upside and recent estimate revisions suggesting Wall Street still sees earnings growth potential for CVNA. Can Carvana (CVNA) Climb 37.01% to Reach the Level Wall Street Analysts Expect?
• Positive Sentiment: Several bullish articles argue Carvana’s turnaround is still intact, citing strong revenue growth, expanding margins, and operational efficiencies that could support further upside. Carvana: 40% Growth, Expanding Margins, And More Upside Ahead
• Neutral Sentiment: A director sold 15,000 shares, but the transaction was relatively modest versus the insider’s remaining stake and does not clearly indicate a major change in fundamentals. SEC Form 4 filing for Ira J. Platt
• Negative Sentiment: CarMax’s earnings report and commentary on continued low margins are weighing on sentiment for Carvana, since investors are extrapolating sector-wide pressure onto CVNA. Carvana Stock Falls As CarMax Warns Of Persistent Low Margins
• Negative Sentiment: Some commentary warns that the used-car market is softening and that credit-related risks could hurt margins and financing performance, which is fueling selling pressure in CVNA. CarMax Drops 7% Despite Earnings Beat, Carvana Tumbles 8% on Used-Car Margin, Credit Fears
• Negative Sentiment: Recent articles have also taken a skeptical view of Carvana’s turnaround story, arguing there may be hidden risks behind the bullish narrative. Carvana: The Turnaround Story Has A Hidden Trap

Carvana Company 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.