Avalon Global Asset Management LLC Takes Position in Carvana Co. $CVNA

Key Points

• Avalon Global Asset Management LLC has acquired a new stake in Carvana Co., purchasing 10,000 shares valued at approximately $2.09 million.
• Carvana reported quarterly earnings of $1.28 EPS, exceeding analysts' estimates, with a revenue of $4.84 billion, reflecting a 41.9% year-over-year increase.
• Several institutional investors are increasing their stakes in Carvana, with 56.71% of the stock currently owned by institutional investors and hedge funds.

Avalon Global Asset Management LLC purchased a new stake in shares of Carvana Co. (NYSE:CVNA - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 10,000 shares of the company's stock, valued at approximately $2,091,000.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the stock. Brooklyn Investment Group lifted its stake in shares of Carvana by 961.5% in the first quarter. Brooklyn Investment Group now owns 138 shares of the company's stock worth $29,000 after buying an additional 125 shares in the last quarter. N.E.W. Advisory Services LLC purchased a new position in Carvana during the 1st quarter worth $33,000. Versant Capital Management Inc grew its position 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 purchasing an additional 82 shares during the last quarter. Strategic Investment Solutions Inc. IL acquired a new stake in shares of Carvana in the 1st quarter worth $90,000. Finally, Gordian Capital Singapore Pte Ltd acquired a new stake in shares of Carvana in the 4th quarter worth $98,000. 56.71% of the stock is owned by hedge funds and other institutional investors.

Carvana Stock Down 1.4%

Shares of CVNA traded down $5.42 during trading hours on Friday, reaching $371.96. The company's stock had a trading volume of 1,835,939 shares, compared to its average volume of 4,076,852. The company has a 50 day moving average of $345.70 and a two-hundred day moving average of $281.81. Carvana Co. has a 1-year low of $124.39 and a 1-year high of $413.33. The firm has a market cap of $80.05 billion, a price-to-earnings ratio of 93.22, a P/E/G ratio of 1.21 and a beta of 3.57. The company has a quick ratio of 2.58, a current ratio of 4.00 and a debt-to-equity ratio of 2.51.

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

Analysts Set New Price Targets

Several equities analysts have weighed in on CVNA shares. Evercore ISI raised their target price on shares of Carvana from $365.00 to $370.00 and gave the company an "in-line" rating in a report on Tuesday, August 12th. Royal Bank Of Canada lifted their price target on shares of Carvana from $400.00 to $460.00 and gave the company an "outperform" rating in a research report on Thursday, July 31st. JPMorgan Chase & Co. lifted their price objective on Carvana from $350.00 to $415.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. DA Davidson upped their price target on shares of Carvana from $260.00 to $380.00 and gave the company a "neutral" rating in a report on Thursday, July 31st. Finally, Robert W. Baird boosted their target price on shares of Carvana from $200.00 to $275.00 and gave the company a "neutral" rating in a research note on Thursday, May 8th. Twelve analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $383.47.

Insider Buying and Selling

In other Carvana news, major shareholder Ernest C. Garcia II sold 100,000 shares of Carvana stock in a transaction on Friday, June 6th. The stock was sold at an average price of $346.99, for a total transaction 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders sold 2,865,507 shares of company stock valued at $1,003,408,791 over the last three months. 17.12% of the stock is owned by company insiders.

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.