Anabranch Capital Management LP Sells 28,413 Shares of Carvana Co. $CVNA

Key Points

• Anabranch Capital Management LP reduced its Carvana stake by 25.7% in the fourth quarter, selling 28,413 shares and leaving it with 82,028 shares worth about $34.6 million. Carvana still remains the firm’s second-largest holding.
• Carvana’s latest earnings beat expectations, reporting $1.69 EPS versus the $0.32 consensus and revenue of $6.43 billion, above estimates. Analysts now expect the company to post $1.58 EPS for the current year.
• Despite recent insider sales, Wall Street remains generally positive on CVNA, with an average rating of “Moderate Buy” and a consensus price target of $93.14, implying upside from its recent trading level around $70.

Anabranch Capital Management LP cut its stake in shares of Carvana Co. (NYSE:CVNA - Free Report) by 25.7% during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 82,028 shares of the company's stock after selling 28,413 shares during the quarter. Carvana comprises about 23.3% of Anabranch Capital Management LP's investment portfolio, making the stock its 2nd largest position. Anabranch Capital Management LP's holdings in Carvana were worth $34,617,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently added to or reduced their stakes in CVNA. Thurston Springer Miller Herd & Titak Inc. acquired a new stake in Carvana in the 4th quarter valued at about $29,000. Farmers & Merchants Investments Inc. purchased a new position in Carvana in the 4th quarter valued at about $29,000. Motiv8 Investments LLC purchased a new position in shares of Carvana during the 4th quarter worth about $33,000. Salomon & Ludwin LLC lifted its holdings in shares of Carvana by 112.5% during the 4th quarter. Salomon & Ludwin LLC now owns 85 shares of the company's stock worth $37,000 after acquiring an additional 45 shares during the period. Finally, Washington Trust Advisors Inc. purchased a new position in shares of Carvana during the 3rd quarter worth about $38,000. 56.71% of the stock is owned by institutional investors and hedge funds.

Carvana Price Performance

Shares of NYSE CVNA opened at $69.96 on Wednesday. The firm's 50-day simple moving average is $71.47 and its 200 day simple moving average is $75.25. The stock has a market cap of $76.73 billion, a P/E ratio of 42.55, a P/E/G ratio of 11.63 and a beta of 3.45. Carvana Co. has a fifty-two week low of $54.46 and a fifty-two week high of $97.38. The company has a quick ratio of 2.57, a current ratio of 4.09 and a debt-to-equity ratio of 1.05.

Carvana (NYSE:CVNA - Get Free Report) last released its earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.32 by $1.37. The firm had revenue of $6.43 billion for the quarter, compared to analyst estimates of $6.12 billion. Carvana had a return on equity of 41.46% and a net margin of 6.40%. Equities analysts expect that Carvana Co. will post 1.58 EPS for the current year.

Insider Activity

In related news, insider Thomas Taira sold 18,850 shares of Carvana stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $68.20, for a total value of $1,285,570.00. Following the transaction, the insider owned 292,820 shares of the company's stock, valued at approximately $19,970,324. This trade represents a 6.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through 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 Carvana stock in a transaction dated Wednesday, June 10th. The stock was 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 in the company, valued at $15,047,200. This represents a 6.33% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 415,812 shares of company stock valued at $29,056,896 over the last quarter. Insiders own 15.19% of the company's stock.

Key Headlines Impacting Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana is expanding beyond used cars and has purchased seven new-vehicle franchises since last year, a move that could broaden its revenue base and potentially disrupt the traditional dealership model. Carvana is expanding into new vehicles. The implications could reshape the U.S. automotive retail market
• Positive Sentiment: Wall Street price targets imply roughly 37% upside for CVNA, and the recent trend in earnings estimate revisions suggests analysts remain constructive on the company’s outlook. Can Carvana (CVNA) Climb 37.01% to Reach the Level Wall Street Analysts Expect?
• Positive Sentiment: Market commentary has also been favorable, with Jim Cramer calling Carvana “a great buy,” which may have helped reinforce bullish sentiment among retail investors. Jim Cramer Notes “Carvana Was a Great Buy for Us”
• Neutral Sentiment: Carvana shares have been rising while the broader market has been weaker, indicating relative strength rather than a clear company-specific catalyst from the latest trading session. Carvana (CVNA) Ascends While Market Falls: Some Facts to Note
• Neutral Sentiment: A director sold 15,000 shares at $67.83, but the transaction was relatively small versus the insider’s remaining holdings and does not necessarily signal a major shift in fundamentals. SEC Form 4 filing for Ira J. Platt

Wall Street Analyst Weigh In

Several research analysts recently commented on the stock. Barclays set a $93.00 price target on shares of Carvana and gave the company an "overweight" rating in a report on Thursday, May 14th. Zacks Research raised shares of Carvana from a "hold" rating to a "strong-buy" rating in a research report on Monday, June 8th. Citizens Jmp raised their price target on shares of Carvana from $92.00 to $103.00 and gave the stock a "market outperform" rating in a research report on Friday, May 1st. William Blair restated an "outperform" rating on shares of Carvana in a research note on Friday, March 13th. Finally, Royal Bank Of Canada restated an "outperform" rating and set a $92.00 price objective on shares of Carvana in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $93.14.

About Carvana

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.

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