Avala Global LP Raises Holdings in Carvana Co. $CVNA

Key Points

• Avala Global LP increased its Carvana stake by 11.7% in the fourth quarter, adding 22,400 shares to bring its total to 214,136 shares. The position was worth about $90.37 million and made Carvana the fund’s 11th-largest holding.
• Insider selling continued at Carvana, with Director J. Danforth Quayle and CFO Mark W. Jenkins both reducing their holdings in recent transactions. Overall, insiders sold 415,812 shares worth about $29.1 million over the last quarter.
• Carvana shares were under pressure despite solid fundamentals, opening at $62.82 and sitting below recent moving averages. The company’s last earnings report beat expectations, but analysts remain mixed-to-bullish overall with a consensus Moderate Buy rating and a target price of $93.14.

Avala Global LP boosted its stake in shares of Carvana Co. (NYSE:CVNA - Free Report) by 11.7% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 214,136 shares of the company's stock after acquiring an additional 22,400 shares during the quarter. Carvana accounts for about 4.3% of Avala Global LP's investment portfolio, making the stock its 11th largest holding. Avala Global LP owned approximately 0.10% of Carvana worth $90,370,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors also recently bought and sold shares of the stock. Gavilan Investment Partners LLC purchased a new stake in Carvana in the 3rd quarter worth approximately $26,030,000. Sands Capital Management LLC lifted its holdings in Carvana by 44.4% in the 4th quarter. Sands Capital Management LLC now owns 2,442,534 shares of the company's stock worth $1,030,798,000 after buying an additional 751,019 shares during the period. Intech Investment Management LLC lifted its holdings in Carvana by 301.4% in the 3rd quarter. Intech Investment Management LLC now owns 7,230 shares of the company's stock worth $2,727,000 after buying an additional 5,429 shares during the period. TD Asset Management Inc lifted its holdings in Carvana by 5.2% in the 3rd quarter. TD Asset Management Inc now owns 133,811 shares of the company's stock worth $50,479,000 after buying an additional 6,643 shares during the period. Finally, Picton Mahoney Asset Management lifted its holdings in Carvana by 581.4% in the 3rd quarter. Picton Mahoney Asset Management now owns 16,491 shares of the company's stock worth $6,220,000 after buying an additional 14,071 shares during the period. 56.71% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Carvana

In related news, Director J Danforth Quayle sold 14,525 shares of the firm's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $70.00, for a total transaction of $1,016,750.00. Following the completion of the transaction, the director owned 214,960 shares of the company's stock, valued at $15,047,200. This trade represents a 6.33% decrease in their position. The transaction 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, CFO Mark W. Jenkins sold 63,750 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $62.07, for a total value of $3,956,962.50. Following the transaction, the chief financial officer directly owned 985,445 shares of the company's stock, valued at approximately $61,166,571.15. This trade represents a 6.08% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 415,812 shares of company stock worth $29,056,896 over the last quarter. 15.19% of the stock is currently owned by company insiders.

Carvana Stock Down 10.3%

CVNA stock opened at $62.82 on Thursday. Carvana Co. has a twelve month low of $54.46 and a twelve month 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. The firm has a market cap of $68.91 billion, a PE ratio of 38.21, a price-to-earnings-growth ratio of 11.82 and a beta of 3.45. The business has a 50 day moving average of $71.47 and a 200 day moving average of $75.19.

Carvana (NYSE:CVNA - Get Free Report) last posted its quarterly earnings data 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 return on equity of 41.46% and a net margin of 6.40%.The company had revenue of $6.43 billion during the quarter, compared to analyst estimates of $6.12 billion. On average, research analysts forecast that Carvana Co. will post 1.58 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

CVNA has been the subject of a number of research analyst reports. Robert W. Baird set a $88.00 target price on Carvana in a research note on Friday, May 15th. Argus lowered their target price on Carvana from $500.00 to $100.00 in a research note on Monday, May 11th. Gordon Haskett raised their target price on Carvana from $67.00 to $85.00 and gave the company a "hold" rating in a research note on Thursday, April 30th. Zacks Research upgraded Carvana from a "hold" rating to a "strong-buy" rating in a research note on Monday, June 8th. Finally, BTIG Research restated a "buy" rating and issued a $97.00 target price on shares of Carvana in a research note on Friday, June 5th. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $93.14.

Trending Headlines about Carvana

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

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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