Carvana Co. $CVNA Shares Sold by Brightlight Capital Management LP

Key Points

• Brightlight Capital Management cut its Carvana stake by 18% in the fourth quarter, selling 20,400 shares and leaving it with 92,800 shares worth about $39.2 million. Carvana remains Brightlight’s largest holding, accounting for 27.8% of its portfolio.
• Insider selling has continued, including recent sales by CFO Mark W. Jenkins and Director Ira J. Platt. Company insiders sold 415,812 shares over the last 90 days, though they still own 15.19% of the stock.
• Carvana shares fell 10.3% to $62.82, even after the company reported strong quarterly results earlier this year that beat earnings and revenue expectations. Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $93.14.

Brightlight Capital Management LP lowered its holdings in Carvana Co. (NYSE:CVNA - Free Report) by 18.0% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 92,800 shares of the company's stock after selling 20,400 shares during the period. Carvana makes up 27.8% of Brightlight Capital Management LP's portfolio, making the stock its biggest position. Brightlight Capital Management LP's holdings in Carvana were worth $39,163,000 as of its most recent SEC filing.

Several other large investors also recently made changes to their positions in CVNA. Royal Bank of Canada increased its position in shares of Carvana by 40.8% in the first quarter. Royal Bank of Canada now owns 29,867 shares of the company's stock worth $6,243,000 after acquiring an additional 8,654 shares in the last quarter. Geneos Wealth Management Inc. increased its position in shares of 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 acquiring an additional 181 shares in the last quarter. Cerity Partners LLC increased its position in shares of 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 acquiring an additional 1,226 shares in the last quarter. AXA S.A. grew its holdings in Carvana by 340.7% during the 2nd quarter. AXA S.A. now owns 4,253 shares of the company's stock valued at $1,433,000 after purchasing an additional 3,288 shares in the last quarter. Finally, NewEdge Advisors LLC grew its holdings in Carvana by 9.1% during the 2nd quarter. NewEdge Advisors LLC now owns 9,893 shares of the company's stock valued at $3,334,000 after purchasing an additional 825 shares in the last quarter. Institutional investors and hedge funds own 56.71% of the company's stock.

Insider Activity

In other Carvana news, CFO Mark W. Jenkins sold 63,750 shares of the stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $62.07, for a total transaction of $3,956,962.50. Following the transaction, the chief financial officer directly owned 985,445 shares in the company, valued at $61,166,571.15. This represents a 6.08% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Ira J. Platt sold 15,000 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $67.83, for a total transaction of $1,017,450.00. Following the transaction, the director owned 186,470 shares in the company, valued at $12,648,260.10. This trade represents a 7.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 415,812 shares of company stock worth $29,056,896 over the last ninety days. Insiders own 15.19% of the company's stock.

Carvana Trading Down 10.3%

NYSE CVNA opened at $62.82 on Thursday. Carvana Co. has a 12 month low of $54.46 and a 12 month 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 company has a market capitalization of $68.91 billion, a price-to-earnings ratio of 38.21, a price-to-earnings-growth ratio of 11.82 and a beta of 3.45. The company's fifty day moving average price is $71.47 and its two-hundred day moving average price is $75.19.

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

Analysts Set New Price Targets

CVNA has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. raised their price target on shares of Carvana from $91.00 to $93.00 and gave the company an "overweight" rating in a report on Thursday, April 30th. Robert W. Baird set a $88.00 price target on shares of Carvana in a report on Friday, May 15th. DA Davidson raised their price target on shares of Carvana from $64.00 to $67.00 and gave the company a "neutral" rating in a report on Friday, May 1st. BNP Paribas Exane raised their price target on shares of Carvana from $77.60 to $85.80 in a report on Thursday, April 30th. Finally, Argus lowered their price target on shares of Carvana from $500.00 to $100.00 in a report on Monday, May 11th. Two analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, Carvana presently has a consensus rating of "Moderate Buy" and an average price target of $93.14.

Key Carvana News

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana is expanding into new vehicle sales, with seven new-vehicle franchises already acquired; investors may view this as a meaningful growth opportunity that broadens the company’s addressable market. Carvana is expanding into new vehicles. The implications could reshape the U.S. automotive retail market
• Positive Sentiment: Analyst commentary remains constructive, with price targets implying notable upside and recent estimate revisions suggesting Wall Street still sees earnings growth potential for CVNA. Can Carvana (CVNA) Climb 37.01% to Reach the Level Wall Street Analysts Expect?
• Positive Sentiment: Several bullish articles argue Carvana’s turnaround is still intact, citing strong revenue growth, expanding margins, and operational efficiencies that could support further upside. Carvana: 40% Growth, Expanding Margins, And More Upside Ahead
• Neutral Sentiment: A director sold 15,000 shares, but the transaction was relatively modest versus the insider’s remaining stake and does not clearly indicate a major change in fundamentals. SEC Form 4 filing for Ira J. Platt
• Negative Sentiment: CarMax’s earnings report and commentary on continued low margins are weighing on sentiment for Carvana, since investors are extrapolating sector-wide pressure onto CVNA. Carvana Stock Falls As CarMax Warns Of Persistent Low Margins
• Negative Sentiment: Some commentary warns that the used-car market is softening and that credit-related risks could hurt margins and financing performance, which is fueling selling pressure in CVNA. CarMax Drops 7% Despite Earnings Beat, Carvana Tumbles 8% on Used-Car Margin, Credit Fears
• Negative Sentiment: Recent articles have also taken a skeptical view of Carvana’s turnaround story, arguing there may be hidden risks behind the bullish narrative. Carvana: The Turnaround Story Has A Hidden Trap

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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