Alyeska Investment Group L.P. Takes $71.86 Million Position in Carvana Co. $CVNA

Key Points

• Alyeska Investment Group L.P. has acquired a new stake in Carvana Co., purchasing 343,678 shares valued at approximately $71.86 million.
• Carvana's stock has received multiple "outperform" ratings from analysts, with price targets raised significantly, indicating positive sentiment for future growth.
• Major shareholder Ernest C. Garcia II sold 100,000 shares recently, while insiders have sold over 2.7 million shares in the last ninety days, reflecting changing ownership dynamics.

Alyeska Investment Group L.P. bought a new position in shares of Carvana Co. (NYSE:CVNA - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 343,678 shares of the company's stock, valued at approximately $71,856,000. Alyeska Investment Group L.P. owned 0.16% of Carvana at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD boosted its holdings in Carvana by 13.9% in the first quarter. Price T Rowe Associates Inc. MD now owns 14,950,011 shares of the company's stock worth $3,125,749,000 after acquiring an additional 1,823,218 shares in the last quarter. Vanguard Group Inc. lifted its holdings in Carvana by 9.7% during the first quarter. Vanguard Group Inc. now owns 12,534,843 shares of the company's stock worth $2,620,785,000 after acquiring an additional 1,109,476 shares during the period. Durable Capital Partners LP lifted its holdings in Carvana by 6.3% during the fourth quarter. Durable Capital Partners LP now owns 2,168,232 shares of the company's stock worth $440,932,000 after acquiring an additional 129,246 shares during the period. Whale Rock Capital Management LLC increased its position in Carvana by 29.8% in the fourth quarter. Whale Rock Capital Management LLC now owns 1,214,679 shares of the company's stock worth $247,017,000 after buying an additional 278,760 shares during the last quarter. Finally, T. Rowe Price Investment Management Inc. increased its position in Carvana by 1.4% in the first quarter. T. Rowe Price Investment Management Inc. now owns 692,725 shares of the company's stock worth $144,835,000 after buying an additional 9,694 shares during the last quarter. Institutional investors and hedge funds own 56.71% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on CVNA shares. Evercore ISI raised their target price on Carvana from $365.00 to $370.00 and gave the stock an "in-line" rating in a research report on Tuesday, August 12th. Morgan Stanley boosted their target price on Carvana from $280.00 to $290.00 and gave the stock an "overweight" rating in a research report on Thursday, May 15th. Bank of America lifted their price target on Carvana from $375.00 to $425.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. Gordon Haskett began coverage on Carvana in a research note on Monday, July 14th. They set a "hold" rating and a $329.00 price target for the company. Finally, Wells Fargo & Company boosted their target price on Carvana from $390.00 to $425.00 and gave the company an "overweight" rating in a research note on Thursday, July 31st. Twelve research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $383.47.

Carvana Stock Down 0.3%

CVNA traded down $0.94 during trading on Friday, hitting $369.23. 2,443,272 shares of the company's stock traded hands, compared to its average volume of 2,330,485. The company's 50 day simple moving average is $351.83 and its two-hundred day simple moving average is $285.61. The stock has a market capitalization of $79.46 billion, a price-to-earnings ratio of 92.54, a PEG ratio of 1.22 and a beta of 3.51. The company has a current ratio of 4.00, a quick ratio of 2.58 and a debt-to-equity ratio of 2.51. Carvana Co. has a 12-month low of $124.39 and a 12-month high of $413.33.

Carvana (NYSE:CVNA - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported $1.28 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.19. The firm had revenue of $4.84 billion for the quarter, compared to analysts' expectations of $4.54 billion. Carvana had a return on equity of 40.57% and a net margin of 3.46%.The company's revenue was up 41.9% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.05) EPS. Analysts predict that Carvana Co. will post 2.85 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, major shareholder Ernest C. Garcia II sold 100,000 shares of the firm's stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $353.76, for a total value of $35,376,000.00. Following the transaction, the insider directly owned 36,437,346 shares of the company's stock, valued at approximately $12,890,075,520.96. This trade represents a 0.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Ernest C. Garcia II sold 93,376 shares of the firm's stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $394.16, for a total value of $36,805,084.16. Following the completion of the transaction, the insider directly owned 6,624 shares in the company, valued at approximately $2,610,915.84. This represents a 93.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 2,522,933 shares of company stock worth $888,062,136. 17.12% of the stock is owned by insiders.

Carvana Profile

Carvana Co, together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices.