Contour Asset Management LLC Acquires 267,994 Shares of Carvana Co. $CVNA

Key Points

• Contour Asset Management LLC increased its stake in Carvana Co. by 71.4% in the first quarter, now holding over 643,000 shares valued at approximately $134.5 million.
• Several hedge funds, including Brooklyn Investment Group and N.E.W. Advisory Services, have significantly raised or initiated stakes in Carvana, indicating strong institutional interest.
• Carvana recently reported earnings surpassing analysts' expectations, with $1.28 earnings per share and a revenue of $4.84 billion, reflecting a 41.9% year-over-year increase.

Contour Asset Management LLC lifted its holdings in shares of Carvana Co. (NYSE:CVNA - Free Report) by 71.4% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 643,114 shares of the company's stock after buying an additional 267,994 shares during the period. Carvana makes up about 5.4% of Contour Asset Management LLC's investment portfolio, making the stock its 8th largest holding. Contour Asset Management LLC owned about 0.30% of Carvana worth $134,462,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in CVNA. Price T Rowe Associates Inc. MD boosted its position in shares of Carvana by 13.9% during the first quarter. Price T Rowe Associates Inc. MD now owns 14,950,011 shares of the company's stock worth $3,125,749,000 after buying an additional 1,823,218 shares during the period. Vanguard Group Inc. lifted its position in Carvana by 9.7% in the first quarter. Vanguard Group Inc. now owns 12,534,843 shares of the company's stock worth $2,620,785,000 after purchasing an additional 1,109,476 shares during the period. Castle Hook Partners LP acquired a new stake in Carvana in the fourth quarter worth approximately $116,020,000. BNP Paribas Financial Markets lifted its position in Carvana by 89.8% in the fourth quarter. BNP Paribas Financial Markets now owns 1,018,321 shares of the company's stock worth $207,086,000 after purchasing an additional 481,912 shares during the period. Finally, Whale Rock Capital Management LLC lifted its position in Carvana by 29.8% in the fourth quarter. Whale Rock Capital Management LLC now owns 1,214,679 shares of the company's stock worth $247,017,000 after purchasing an additional 278,760 shares during the period. 56.71% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, major shareholder Ernest C. Garcia II sold 93,376 shares of the firm's stock in a transaction dated Thursday, July 31st. The stock was sold at an average price of $394.16, for a total transaction 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 $2,610,915.84. This trade represents a 93.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder Ernest C. Garcia II sold 100,000 shares of the business's stock in a transaction that occurred on Tuesday, July 8th. The shares were 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. The trade was a 0.27% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 2,522,933 shares of company stock worth $888,062,136. Insiders own 17.12% of the company's stock.

Wall Street Analysts Forecast Growth

CVNA has been the subject of a number of research analyst reports. Gordon Haskett initiated coverage on Carvana in a research report on Monday, July 14th. They issued a "hold" rating and a $329.00 target price for the company. Oppenheimer upgraded Carvana from a "market perform" rating to an "outperform" rating and set a $450.00 target price for the company in a research report on Friday, July 25th. Stephens increased their price objective on Carvana from $300.00 to $375.00 and gave the company an "overweight" rating in a research report on Monday, July 7th. Citigroup reiterated an "outperform" rating on shares of Carvana in a research report on Thursday, July 31st. Finally, Needham & Company LLC increased their price objective on Carvana from $340.00 to $500.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Twelve equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $383.47.

Carvana Stock Down 0.3%

Shares of CVNA traded down $0.94 during mid-day trading on Friday, reaching $369.23. The company's stock had a trading volume of 2,443,272 shares, compared to its average volume of 2,330,485. The business has a fifty day moving average of $351.83 and a 200 day moving average of $285.57. The company 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. Carvana Co. has a 1 year low of $124.39 and a 1 year high of $413.33. 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 earnings results on Wednesday, July 30th. The company reported $1.28 earnings per share (EPS) 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 company had revenue of $4.84 billion during the quarter, compared to analyst estimates of $4.54 billion. During the same quarter in the prior year, the company earned ($0.05) earnings per share. The company's revenue for the quarter was up 41.9% on a year-over-year basis. As a group, analysts forecast that Carvana Co. will post 2.85 earnings per share for the current fiscal year.

Carvana 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.