Carvana Co. $CVNA Shares Acquired by Gavilan Investment Partners LLC

Key Points

• Gavilan Investment Partners boosted its Carvana stake by 24.6% in the fourth quarter, buying 17,000 more shares to bring its total to 86,000 shares worth about $36.3 million.
• Carvana posted strong quarterly results, reporting $1.69 EPS versus the $0.32 consensus estimate and revenue of $6.43 billion, topping analyst expectations.
• Wall Street sentiment remains positive overall, with analysts assigning Carvana a Moderate Buy rating and an average price target of $93.14, even as some insiders recently sold shares.

Gavilan Investment Partners LLC increased its stake in shares of Carvana Co. (NYSE:CVNA - Free Report) by 24.6% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 86,000 shares of the company's stock after purchasing an additional 17,000 shares during the period. Carvana makes up approximately 8.7% of Gavilan Investment Partners LLC's investment portfolio, making the stock its 5th largest holding. Gavilan Investment Partners LLC's holdings in Carvana were worth $36,294,000 as of its most recent SEC filing.

Other institutional investors have also made changes to their positions in the company. Vanguard Group Inc. grew its stake in Carvana by 24.7% in the fourth quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company's stock valued at $7,082,804,000 after acquiring an additional 3,328,115 shares during the period. Capital Research Global Investors grew its stake in Carvana by 42.9% in the fourth quarter. Capital Research Global Investors now owns 5,700,953 shares of the company's stock valued at $2,405,959,000 after acquiring an additional 1,711,144 shares during the period. Geode Capital Management LLC grew its stake in Carvana by 55.4% in the fourth quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company's stock valued at $1,632,763,000 after acquiring an additional 1,382,852 shares during the period. State Street Corp grew its stake in Carvana by 6.7% in the third quarter. State Street Corp now owns 2,950,020 shares of the company's stock valued at $1,112,866,000 after acquiring an additional 184,974 shares during the period. Finally, Viking Global Investors LP grew its stake in Carvana by 94.9% in the third quarter. Viking Global Investors LP now owns 2,101,241 shares of the company's stock valued at $792,672,000 after acquiring an additional 1,023,265 shares during the period. 56.71% of the stock is owned by institutional investors and hedge funds.

Carvana Stock Performance

Shares of NYSE CVNA opened at $64.09 on Friday. The stock has a 50 day moving average price of $71.20 and a 200 day moving average price of $75.23. Carvana Co. has a 52 week low of $54.46 and a 52 week high of $97.38. The company has a debt-to-equity ratio of 1.05, a quick ratio of 2.57 and a current ratio of 4.09. The stock has a market capitalization of $70.30 billion, a PE ratio of 38.98, a price-to-earnings-growth ratio of 11.45 and a beta of 3.45.

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

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on CVNA shares. Zacks Research raised Carvana from a "hold" rating to a "strong-buy" rating in a research note on Monday, June 8th. Bank of America upped their price objective on Carvana from $72.00 to $82.00 and gave the stock a "neutral" rating in a research report on Tuesday, April 21st. Wells Fargo & Company upped their price objective on Carvana from $85.00 to $95.00 and gave the stock an "overweight" rating in a research report on Thursday, April 30th. DA Davidson increased their price target on Carvana from $64.00 to $67.00 and gave the company a "neutral" rating in a research report on Friday, May 1st. Finally, William Blair reissued an "outperform" rating on shares of Carvana in a research report on Friday, March 13th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $93.14.

Insider Transactions at Carvana

In other Carvana news, insider Thomas Taira sold 5,597 shares of the company's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $67.15, for a total value of $375,838.55. Following the sale, the insider owned 315,075 shares in the company, valued at $21,157,286.25. This represents a 1.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Stephen R. Palmer sold 5,000 shares of the company's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $70.42, for a total value of $352,100.00. Following the completion of the sale, the vice president owned 152,955 shares in the company, valued at $10,771,091.10. This represents a 3.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 400,812 shares of company stock valued at $28,039,446. Company insiders own 15.19% of the company's stock.

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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