Carvana Co. $CVNA Shares Acquired by Alpine Global Management LLC

Key Points

• Alpine Global Management LLC massively increased its Carvana stake by 3,553.1% in the fourth quarter, ending with 44,604 shares worth about $18.8 million. Carvana now ranks as the fund’s fourth-largest holding.
• Institutional interest in Carvana remains strong, with hedge funds and other investors owning 56.71% of the stock. Several firms, including Invesco and Corient Private Wealth, also boosted their positions during the quarter.
• Analysts remain generally bullish on CVNA, with an average rating of “Moderate Buy” and an average price target of $93.14. Recent reports from firms like Evercore, Barclays, and Bank of America also raised or reaffirmed positive views.

Alpine Global Management LLC raised its holdings in shares of Carvana Co. (NYSE:CVNA - Free Report) by 3,553.1% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 44,604 shares of the company's stock after buying an additional 43,383 shares during the period. Carvana comprises approximately 3.2% of Alpine Global Management LLC's investment portfolio, making the stock its 4th biggest position. Alpine Global Management LLC's holdings in Carvana were worth $18,824,000 as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in the business. MidFirst Bank acquired a new position in shares of Carvana in the 4th quarter worth $382,000. Virtu Financial LLC purchased a new stake in shares of Carvana during the fourth quarter valued at $4,256,000. Invesco Ltd. lifted its holdings in shares of Carvana by 36.8% during the fourth quarter. Invesco Ltd. now owns 1,977,138 shares of the company's stock valued at $834,392,000 after purchasing an additional 532,120 shares during the last quarter. Corient Private Wealth LLC boosted its position in shares of Carvana by 1,849.5% in the 4th quarter. Corient Private Wealth LLC now owns 157,893 shares of the company's stock valued at $66,634,000 after purchasing an additional 149,794 shares during the period. Finally, Mercer Global Advisors Inc. ADV boosted its position in shares of Carvana by 14.1% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 4,990 shares of the company's stock valued at $2,106,000 after purchasing an additional 617 shares during the period. Institutional investors and hedge funds own 56.71% of the company's stock.

Analyst Ratings Changes

CVNA has been the topic of several recent analyst reports. Evercore boosted their price objective on Carvana from $78.00 to $80.00 in a report on Tuesday, April 28th. William Blair reissued an "outperform" rating on shares of Carvana in a research report on Friday, March 13th. Barclays set a $93.00 price target on shares of Carvana and gave the company an "overweight" rating in a report on Thursday, May 14th. Bank of America upped their price target on shares of Carvana from $72.00 to $82.00 and gave the company a "neutral" rating in a research report on Tuesday, April 21st. Finally, BNP Paribas Exane raised their price objective on shares of Carvana from $77.60 to $85.80 in a research note on Thursday, April 30th. Two equities research 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 stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $93.14.

Carvana News Roundup

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana is pushing deeper into new-car sales with its Dallas “car playground” concept and plans to acquire seven Stellantis dealerships, which could expand its addressable market and support longer-term growth. Carvana (CVNA) Stock Could Be 45.6% Undervalued After Dallas Launch And Dealership Deal
• Positive Sentiment: Commentary around Carvana’s new sales model has highlighted customer convenience and innovation, which may be helping sentiment around the company’s long-term strategy. Carvana opens 'car playground' for easy test drive booking
• Positive Sentiment: Some analysts continue to argue that CVNA remains undervalued relative to its growth and operational improvements, with bullish reports pointing to expanding margins and strong execution. Carvana: 40% Growth, Expanding Margins, And More Upside Ahead
• Neutral Sentiment: Carvana’s insider activity included a director sale of 15,000 shares, but the transaction was relatively small compared with the executive’s remaining stake and does not by itself signal a major fundamental change. SEC Form 4 filing for Ira J. Platt
• Negative Sentiment: Bearish articles are warning that Carvana’s rally may have run ahead of fundamentals, citing valuation risk and the potential for a “bull trap” if growth expectations cool. Carvana's Triple-Top Bull-Trap Plays Out - Inflated Valuation Risks Remain
• Negative Sentiment: Peer CarMax’s earnings update raised concerns about used-car margin pressure, weaker volumes, and credit risk, which spilled over into CVNA and weighed on sentiment across the auto retail group. Carvana Stock Falls As CarMax Warns Of Persistent Low Margins

Insider Buying and Selling at Carvana

In related news, COO Benjamin E. Huston sold 50,000 shares of the business's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $61.97, for a total value of $3,098,600.00. Following the completion of the sale, the chief operating officer directly owned 464,620 shares in the company, valued at approximately $28,793,430.64. The trade was a 9.72% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director J Danforth Quayle sold 14,525 shares of the company'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 value of $1,016,750.00. Following the sale, the director directly owned 214,960 shares of the company's stock, valued at $15,047,200. The trade was a 6.33% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 415,812 shares of company stock worth $29,056,896 in the last 90 days. Company insiders own 15.19% of the company's stock.

Carvana Stock Performance

Shares of CVNA opened at $66.56 on Friday. The company's 50 day moving average price is $71.54 and its 200 day moving average price is $75.15. Carvana Co. has a 52 week low of $54.46 and a 52 week high of $97.38. The company has a market capitalization of $73.01 billion, a PE ratio of 40.49, a PEG ratio of 10.61 and a beta of 3.45. The company has a debt-to-equity ratio of 1.05, a quick ratio of 2.57 and a current ratio of 4.09.

Carvana (NYSE:CVNA - Get Free Report) last issued its earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share for the quarter, topping the consensus estimate of $0.32 by $1.37. The company had revenue of $6.43 billion for the quarter, compared to analyst estimates of $6.12 billion. Carvana had a return on equity of 41.46% and a net margin of 6.40%. Research analysts expect that Carvana Co. will post 1.58 EPS for the current fiscal year.

Carvana Profile

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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