Carvana Co. $CVNA Shares Sold by Bank of America Corp DE

Key Points

• Bank of America cut its Carvana stake by 46.8% in the first quarter, selling 333,514 shares and retaining 379,656 shares valued at approximately $119.4 million. Institutional investors and hedge funds collectively own 56.71% of CVNA.
• Carvana insiders sold 391,372 shares worth about $26.6 million over the past 90 days, including substantial sales by the CFO and COO under pre-arranged Rule 10b5-1 trading plans.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $84.14, despite several recent target-price reductions. Carvana’s latest quarterly results beat estimates, reporting $0.42 in EPS and $7.38 billion in revenue, up 52.4% year over year.

Bank of America Corp DE decreased its holdings in shares of Carvana Co. (NYSE:CVNA - Free Report) by 46.8% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 379,656 shares of the company's stock after selling 333,514 shares during the period. Bank of America Corp DE's holdings in Carvana were worth $119,356,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds also recently made changes to their positions in CVNA. Royal Bank of Canada lifted its stake in Carvana by 40.8% during the first quarter. Royal Bank of Canada now owns 29,867 shares of the company's stock valued at $6,243,000 after purchasing an additional 8,654 shares during the last quarter. Geneos Wealth Management Inc. grew its position in Carvana by 251.4% in the first quarter. Geneos Wealth Management Inc. now owns 253 shares of the company's stock worth $53,000 after buying an additional 181 shares during the last quarter. Cerity Partners LLC grew its position in Carvana by 28.8% in the second quarter. Cerity Partners LLC now owns 5,481 shares of the company's stock worth $1,847,000 after buying an additional 1,226 shares during the last quarter. AXA S.A. increased its holdings in shares of Carvana by 340.7% in the second quarter. AXA S.A. now owns 4,253 shares of the company's stock valued at $1,433,000 after buying an additional 3,288 shares in the last quarter. Finally, NewEdge Advisors LLC increased its holdings in shares of Carvana by 9.1% in the second quarter. NewEdge Advisors LLC now owns 9,893 shares of the company's stock valued at $3,334,000 after buying an additional 825 shares in the last quarter. Institutional investors and hedge funds own 56.71% of the company's stock.

Insider Buying and Selling

In related news, CFO Mark W. Jenkins sold 63,750 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $68.34, for a total value of $4,356,675.00. Following the completion of the sale, the chief financial officer owned 1,029,580 shares of the company's stock, valued at approximately $70,361,497.20. The trade was a 5.83% 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, COO Benjamin E. Huston sold 50,000 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $68.55, for a total value of $3,427,500.00. Following the completion of the transaction, the chief operating officer owned 458,755 shares in the company, valued at $31,447,655.25. This represents a 9.83% 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 90 days, insiders sold 391,372 shares of company stock worth $26,555,789. Insiders own 15.19% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. Argus reduced their price objective on Carvana from $500.00 to $100.00 in a research note on Monday, May 11th. Zacks Research lowered Carvana from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, July 15th. BNP Paribas Exane reduced their target price on Carvana from $86.00 to $69.00 and set a "hold" rating for the company in a report on Thursday, July 30th. Needham & Company LLC reiterated a "buy" rating and issued a $120.00 price target on shares of Carvana in a research report on Thursday, July 30th. Finally, Barclays decreased their price target on Carvana from $94.00 to $93.00 and set an "overweight" rating for the company in a research report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, Carvana presently has an average rating of "Moderate Buy" and an average target price of $84.14.

Carvana Stock Performance

CVNA stock opened at $68.46 on Friday. The company has a debt-to-equity ratio of 0.94, a quick ratio of 2.33 and a current ratio of 3.93. The stock has a market cap of $75.09 billion, a P/E ratio of 37.87, a P/E/G ratio of 2.56 and a beta of 3.46. The firm has a 50 day simple moving average of $66.60 and a 200 day simple moving average of $69.95. Carvana Co. has a 52 week low of $54.46 and a 52 week high of $97.38.

Carvana (NYSE:CVNA - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The company reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.39 by $0.03. Carvana had a net margin of 6.26% and a return on equity of 37.06%. The firm had revenue of $7.38 billion for the quarter, compared to analyst estimates of $6.90 billion. During the same quarter in the prior year, the business earned $1.51 EPS. The company's revenue for the quarter was up 52.4% compared to the same quarter last year. Research analysts anticipate that Carvana Co. will post 1.65 earnings per share 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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