Armistice Capital LLC Buys New Stake in Carvana Co. $CVNA

Key Points

• Armistice Capital LLC acquired a new stake in Carvana Co. by purchasing 5,055 shares valued at approximately $1.06 million in the first quarter of 2023.
• Major shareholder Ernest C. Garcia II sold 100,000 shares for around $34.7 million, while insiders overall sold 2.75 million shares worth nearly $965.7 million over the last 90 days.
• Analysts are optimistic about Carvana, with recent price target increases by firms including DA Davidson and Royal Bank of Canada, reflecting a consensus rating of "Moderate Buy" with a target of approximately $383.47.

Armistice Capital LLC acquired a new position in Carvana Co. (NYSE:CVNA - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 5,055 shares of the company's stock, valued at approximately $1,057,000.

Other institutional investors have also recently made changes to their positions in the company. Brooklyn Investment Group lifted its stake in shares of Carvana by 961.5% in the 1st quarter. Brooklyn Investment Group now owns 138 shares of the company's stock worth $29,000 after purchasing an additional 125 shares during the period. N.E.W. Advisory Services LLC bought a new stake in Carvana during the 1st quarter worth approximately $33,000. Versant Capital Management Inc raised its stake in Carvana by 39.4% during the 1st quarter. Versant Capital Management Inc now owns 290 shares of the company's stock worth $61,000 after acquiring an additional 82 shares during the period. Strategic Investment Solutions Inc. IL bought a new stake in Carvana during the 1st quarter worth approximately $90,000. Finally, Gordian Capital Singapore Pte Ltd bought a new stake in Carvana during the 4th quarter worth approximately $98,000. Institutional investors own 56.71% of the company's stock.

Insider Buying and Selling at Carvana

In related news, major shareholder Ernest C. Garcia II sold 100,000 shares of the firm's stock in a transaction on Friday, June 6th. The shares were sold at an average price of $346.99, for a total value of $34,699,000.00. Following the completion of the transaction, the insider directly owned 37,092,317 shares of the company's stock, valued at approximately $12,870,663,075.83. This trade represents a 0.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders have sold 2,734,007 shares of company stock valued at $961,312,725 over the last ninety days. Company insiders own 17.12% of the company's stock.

Carvana Price Performance

CVNA traded down $3.94 during trading on Wednesday, reaching $362.45. 1,469,629 shares of the company traded hands, compared to its average volume of 2,455,576. The company has a debt-to-equity ratio of 2.51, a quick ratio of 2.58 and a current ratio of 4.00. Carvana Co. has a 12-month low of $124.39 and a 12-month high of $413.33. The firm has a fifty day simple moving average of $349.56 and a 200 day simple moving average of $284.40. The company has a market cap of $78.00 billion, a P/E ratio of 90.84, a PEG ratio of 1.23 and a beta of 3.51.

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

Analyst Ratings Changes

CVNA has been the topic of a number of recent analyst reports. Wedbush upgraded shares of Carvana to a "hold" rating in a research note on Thursday, May 8th. Gordon Haskett initiated coverage on shares of Carvana in a research note on Monday, July 14th. They set a "hold" rating and a $329.00 target price on the stock. Royal Bank Of Canada raised their target price on shares of Carvana from $400.00 to $460.00 and gave the stock an "outperform" rating in a research note on Thursday, July 31st. Stephens raised their target price on shares of Carvana from $300.00 to $375.00 and gave the stock an "overweight" rating in a research note on Monday, July 7th. Finally, Oppenheimer upgraded shares of Carvana from a "market perform" rating to an "outperform" rating and set a $450.00 target price on the stock in a research note on Friday, July 25th. Twelve analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, Carvana currently has a consensus rating of "Moderate Buy" and an average price target of $383.47.

Carvana Company 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.