Carvana Co. $CVNA Shares Sold by Arrowstreet Capital Limited Partnership

Key Points

• Arrowstreet Capital cut its Carvana stake by 24.1% in the fourth quarter, selling 138,120 shares and leaving it with 435,471 shares worth about $183.8 million.
• Carvana continues to attract strong institutional interest, with firms like Vanguard, State Street, and Capital Research all boosting positions; institutions and hedge funds now own 56.71% of the company.
• Analyst sentiment remains mostly positive, with a “Moderate Buy” consensus and an average price target of $93.14, even as some insiders, including the CFO, sold shares under pre-arranged trading plans.

Arrowstreet Capital Limited Partnership lowered its stake in shares of Carvana Co. (NYSE:CVNA - Free Report) by 24.1% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 435,471 shares of the company's stock after selling 138,120 shares during the quarter. Arrowstreet Capital Limited Partnership owned approximately 0.20% of Carvana worth $183,777,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also made changes to their positions in CVNA. Vanguard Group Inc. boosted its holdings in Carvana by 24.7% in the fourth quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company's stock worth $7,082,804,000 after purchasing an additional 3,328,115 shares during the period. State Street Corp lifted its stake in Carvana by 93.7% in the fourth quarter. State Street Corp now owns 5,714,779 shares of the company's stock valued at $2,411,751,000 after buying an additional 2,764,759 shares during the last quarter. Capital Research Global Investors lifted 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 buying an additional 1,711,144 shares during the last quarter. Geode Capital Management LLC lifted 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 buying an additional 1,382,852 shares during the last quarter. Finally, Viking Global Investors LP lifted 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 buying an additional 1,023,265 shares during the last quarter. Institutional investors and hedge funds own 56.71% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have issued reports on CVNA shares. Evercore raised their target price on Carvana from $78.00 to $80.00 in a research note on Tuesday, April 28th. Weiss Ratings cut shares of Carvana from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, March 24th. Zacks Research upgraded shares of Carvana from a "hold" rating to a "strong-buy" rating in a research note on Monday, June 8th. Morgan Stanley lifted their price objective on shares of Carvana from $90.00 to $102.00 and gave the company an "overweight" rating in a research note on Thursday, April 30th. Finally, Robert W. Baird set a $88.00 price objective on shares of Carvana in a research note on Friday, May 15th. Two 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 stock presently has an average rating of "Moderate Buy" and an average price target of $93.14.

Insiders Place Their Bets

In related news, CFO Mark W. Jenkins sold 63,750 shares of the business's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $70.40, for a total value of $4,488,000.00. Following the completion of the sale, the chief financial officer owned 1,036,594 shares of the company's stock, valued at approximately $72,976,217.60. The trade was a 5.79% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through 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 business'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 directly owned 152,955 shares of the company's stock, valued at approximately $10,771,091.10. The trade was a 3.17% 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 400,812 shares of company stock worth $28,039,446 in the last quarter. Corporate insiders own 15.19% of the company's stock.

Carvana Price Performance

Shares of CVNA opened at $64.09 on Monday. The company has a market capitalization of $70.30 billion, a price-to-earnings ratio of 38.98, a P/E/G ratio of 10.82 and a beta of 3.45. Carvana Co. has a fifty-two week low of $54.46 and a fifty-two week high of $97.38. The company has a debt-to-equity ratio of 1.05, a current ratio of 4.09 and a quick ratio of 2.57. The business's 50-day moving average is $71.20 and its 200-day moving average is $75.23.

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, beating analysts' consensus estimates of $0.32 by $1.37. The company had revenue of $6.43 billion for the quarter, compared to the consensus estimate of $6.12 billion. Carvana had a return on equity of 41.46% and a net margin of 6.40%. Equities research analysts expect that Carvana Co. will post 1.58 EPS for the current fiscal year.

About Carvana

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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