Carnegie Investment Counsel Cuts Stake in Carvana Co. (NYSE:CVNA)

Key Points

• Carnegie Investment Counsel significantly reduced its stake in Carvana Co., lowering its holdings by 71.2% in Q1, resulting in ownership of 8,212 shares valued at approximately $1.7 million.
• Institutional investors now hold 56.71% of Carvana’s stock, with notable new positions taken by firms such as Transce3nd LLC and Shell Asset Management in the fourth quarter.
• Despite insider sales, Wall Street analysts remain optimistic about Carvana, with several firms reviewing their ratings and setting target prices as high as $390 per share.

Carnegie Investment Counsel lowered its stake in shares of Carvana Co. (NYSE:CVNA - Free Report) by 71.2% in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 8,212 shares of the company's stock after selling 20,268 shares during the period. Carnegie Investment Counsel's holdings in Carvana were worth $1,717,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also modified their holdings of the company. Transce3nd LLC acquired a new position in Carvana during the fourth quarter worth about $48,000. Versant Capital Management Inc boosted its position in Carvana by 39.4% during the first 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 last quarter. Aster Capital Management DIFC Ltd acquired a new position in Carvana during the fourth quarter worth about $75,000. Gordian Capital Singapore Pte Ltd acquired a new position in Carvana during the fourth quarter worth about $98,000. Finally, Shell Asset Management Co. acquired a new position in Carvana during the fourth quarter worth about $116,000. Hedge funds and other institutional investors own 56.71% of the company's stock.

Insider Activity at Carvana

In related news, CEO Ernest C. Garcia III sold 10,000 shares of the company's stock in a transaction that occurred on Wednesday, July 23rd. The shares were sold at an average price of $337.51, for a total transaction of $3,375,100.00. Following the sale, the chief executive officer directly owned 621,440 shares of the company's stock, valued at $209,742,214.40. This represents a 1.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder Ernest C. Garcia II sold 50,000 shares of the company's stock in a transaction that occurred on Wednesday, July 23rd. The stock was sold at an average price of $337.22, for a total transaction of $16,861,000.00. Following the sale, the insider directly owned 35,542,792 shares in the company, valued at approximately $11,985,740,318.24. The trade was a 0.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 2,171,515 shares of company stock worth $719,730,548. 17.12% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on CVNA. Needham & Company LLC restated a "buy" rating and set a $340.00 price target on shares of Carvana in a research report on Thursday, May 8th. Wall Street Zen upgraded shares of Carvana from a "hold" rating to a "buy" rating in a research report on Saturday, July 5th. Stephens boosted their target price on shares of Carvana from $300.00 to $375.00 and gave the company an "overweight" rating in a report on Monday, July 7th. Wells Fargo & Company boosted their target price on shares of Carvana from $310.00 to $390.00 and gave the company an "overweight" rating in a report on Friday, July 18th. Finally, Piper Sandler set a $340.00 target price on shares of Carvana and gave the company an "overweight" rating in a report on Thursday, May 22nd. Seven equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $318.16.

Carvana Stock Performance

Shares of CVNA stock opened at $331.67 on Friday. The firm's 50 day moving average price is $328.40 and its 200-day moving average price is $261.99. The company has a debt-to-equity ratio of 2.97, a quick ratio of 2.70 and a current ratio of 3.81. Carvana Co. has a one year low of $118.50 and a one year high of $364.00. The firm has a market cap of $71.02 billion, a P/E ratio of 116.38, a P/E/G ratio of 1.26 and a beta of 3.59.

Carvana (NYSE:CVNA - Get Free Report) last announced its earnings results on Wednesday, May 7th. The company reported $1.51 earnings per share for the quarter, topping the consensus estimate of $0.75 by $0.76. Carvana had a net margin of 2.68% and a return on equity of 44.86%. The firm had revenue of $4.23 billion for the quarter, compared to the consensus estimate of $3.94 billion. During the same period in the prior year, the firm earned $0.23 EPS. The firm's revenue for the quarter was up 38.3% on a year-over-year basis. As a group, equities research analysts predict that Carvana Co. will post 2.85 EPS for the current year.

About Carvana

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.

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