Carvana Co. $CVNA is 3G Capital Partners LP's 7th Largest Position

Key Points

• 3G Capital Partners LP significantly increased its holdings in Carvana Co. by 300% in Q1, making it the 7th largest position in their portfolio with approximately 8.4% ownership.
• Carvana reported earnings of $1.28 per share, surpassing estimates, with a revenue of $4.84 billion, up 41.9% year-over-year.
• Several analysts have raised their target prices for Carvana, with Royal Bank Of Canada increasing it from $400 to $460, reflecting strong market confidence in the stock.

3G Capital Partners LP lifted its holdings in Carvana Co. (NYSE:CVNA - Free Report) by 300.0% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 140,000 shares of the company's stock after purchasing an additional 105,000 shares during the quarter. Carvana accounts for approximately 8.4% of 3G Capital Partners LP's holdings, making the stock its 7th largest position. 3G Capital Partners LP owned approximately 0.07% of Carvana worth $29,271,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently modified their holdings of the business. Perbak Capital Partners LLP bought a new position in shares of Carvana in the first quarter worth $204,000. Contour Asset Management LLC boosted its stake in Carvana by 71.4% during the first quarter. Contour Asset Management LLC now owns 643,114 shares of the company's stock valued at $134,462,000 after buying an additional 267,994 shares in the last quarter. PDT Partners LLC boosted its stake in Carvana by 135.8% during the first quarter. PDT Partners LLC now owns 46,700 shares of the company's stock valued at $9,764,000 after buying an additional 26,899 shares in the last quarter. Focus Partners Advisor Solutions LLC bought a new position in Carvana during the first quarter valued at about $656,000. Finally, Point72 Italy S.r.l. boosted its stake in Carvana by 232.4% during the first quarter. Point72 Italy S.r.l. now owns 12,300 shares of the company's stock valued at $2,572,000 after buying an additional 8,600 shares in the last quarter. Institutional investors own 56.71% of the company's stock.

Analysts Set New Price Targets

Several research analysts recently weighed in on the company. DA Davidson raised their target price on Carvana from $260.00 to $380.00 and gave the company a "neutral" rating in a research note on Thursday, July 31st. Piper Sandler raised their target price on Carvana from $340.00 to $440.00 and gave the company an "overweight" rating in a research note on Thursday, July 31st. Wall Street Zen raised Carvana from a "hold" rating to a "buy" rating in a research note on Saturday, August 30th. Citigroup reaffirmed an "outperform" rating on shares of Carvana in a research note on Thursday, July 31st. Finally, Needham & Company LLC raised their target price on Carvana from $340.00 to $500.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Twelve equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, Carvana currently has an average rating of "Moderate Buy" and an average target price of $383.47.

Carvana Trading Down 0.3%

Shares of NYSE:CVNA traded down $0.94 during midday trading on Friday, reaching $369.23. The company had a trading volume of 2,443,272 shares, compared to its average volume of 2,330,485. 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 1-year low of $124.39 and a 1-year high of $413.33. The firm has a market cap of $79.46 billion, a price-to-earnings ratio of 92.54, a price-to-earnings-growth ratio of 1.22 and a beta of 3.51. The company has a fifty day simple moving average of $351.83 and a two-hundred day simple moving average of $285.57.

Carvana (NYSE:CVNA - Get Free Report) last released its quarterly 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 return on equity of 40.57% and a net margin of 3.46%.The business had revenue of $4.84 billion during the quarter, compared to analyst estimates of $4.54 billion. During the same quarter last year, the company posted ($0.05) EPS. Carvana's revenue for the quarter was up 41.9% on a year-over-year basis. Research analysts predict that Carvana Co. will post 2.85 earnings per share for the current year.

Insiders Place Their Bets

In related news, major shareholder Ernest C. Garcia II sold 100,000 shares of the stock in a transaction dated Tuesday, July 8th. The stock was sold at an average price of $353.76, for a total value of $35,376,000.00. Following the completion of the sale, the insider directly owned 36,437,346 shares of the company's stock, valued at approximately $12,890,075,520.96. This represents a 0.27% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder Ernest C. Garcia II sold 93,376 shares of the stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $394.16, for a total value of $36,805,084.16. Following the completion of the sale, the insider directly owned 6,624 shares of the company's stock, valued at approximately $2,610,915.84. This represents a 93.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 2,522,933 shares of company stock valued at $888,062,136 in the last quarter. 17.12% of the stock is currently owned by corporate insiders.

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.