Palestra Capital Management LLC Sells 115,057 Shares of Carvana Co. $CVNA

Key Points

• Palestra Capital Management LLC reduced its holdings in Carvana by 14.3%, owning approximately 691,959 shares, which accounts for 5.7% of its total holdings.
• Analysts have recently increased their price targets for Carvana, with Stephens raising it to $375 and Needham & Company setting a target of $500, reflecting positive outlooks on the stock's performance.
• Major shareholder Ernest C. Garcia II sold over 193,000 shares of Carvana in July, significantly decreasing his ownership stake, which now stands at 17.12% of the company.

Palestra Capital Management LLC lessened its holdings in shares of Carvana Co. (NYSE:CVNA - Free Report) by 14.3% during the 1st quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 691,959 shares of the company's stock after selling 115,057 shares during the period. Carvana accounts for approximately 5.7% of Palestra Capital Management LLC's investment portfolio, making the stock its 6th biggest holding. Palestra Capital Management LLC owned approximately 0.32% of Carvana worth $144,675,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. J.Safra Asset Management Corp lifted its position in shares of Carvana by 140.8% during the 1st quarter. J.Safra Asset Management Corp now owns 3,390 shares of the company's stock worth $709,000 after buying an additional 1,982 shares during the last quarter. Worldquant Millennium Advisors LLC purchased a new stake in Carvana in the fourth quarter valued at $51,091,000. Farther Finance Advisors LLC boosted its stake in Carvana by 333.1% in the first quarter. Farther Finance Advisors LLC now owns 3,482 shares of the company's stock valued at $740,000 after acquiring an additional 2,678 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in shares of Carvana during the fourth quarter worth about $36,527,000. Finally, Brucke Financial Inc. acquired a new stake in shares of Carvana during the fourth quarter worth about $415,000. 56.71% of the stock is owned by institutional investors and hedge funds.

Carvana Stock Performance

Shares of CVNA stock traded down $10.23 during mid-day trading on Thursday, hitting $354.89. The stock had a trading volume of 3,506,057 shares, compared to its average volume of 3,989,517. The firm has a market cap of $76.37 billion, a PE ratio of 88.95, a PEG ratio of 1.24 and a beta of 3.51. The company's 50-day simple moving average is $353.67 and its 200-day simple moving average is $288.06. The company has a debt-to-equity ratio of 2.51, a current ratio of 4.00 and a quick ratio of 2.58. Carvana Co. has a fifty-two week low of $133.57 and a fifty-two week high of $413.33.

Carvana (NYSE:CVNA - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $1.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.09 by $0.19. The business had revenue of $4.84 billion for the quarter, compared to analyst estimates of $4.54 billion. Carvana had a net margin of 3.46% and a return on equity of 40.57%. The business's revenue was up 41.9% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.05) earnings per share. Sell-side analysts anticipate that Carvana Co. will post 2.85 earnings per share for the current year.

Insider Buying and Selling

In other news, major shareholder Ernest C. Garcia II sold 100,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 8th. The stock was 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 $12,890,075,520.96. This trade represents a 0.27% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Ernest C. Garcia II sold 93,376 shares of the company's stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $394.16, for a total value of $36,805,084.16. Following the transaction, the insider directly owned 6,624 shares in the company, valued at $2,610,915.84. This represents a 93.38% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 2,384,157 shares of company stock valued at $841,999,107. Company insiders own 17.12% of the company's stock.

Analyst Upgrades and Downgrades

CVNA has been the subject of a number of research analyst reports. Stephens upped their target price on Carvana from $300.00 to $375.00 and gave the company an "overweight" rating in a research report on Monday, July 7th. Royal Bank Of Canada increased their price objective on Carvana from $400.00 to $460.00 and gave the company an "outperform" rating in a report on Thursday, July 31st. Evercore ISI lifted their target price on shares of Carvana from $365.00 to $370.00 and gave the company an "in-line" rating in a report on Tuesday, August 12th. Citigroup reiterated an "outperform" rating on shares of Carvana in a research note on Thursday, July 31st. Finally, Wall Street Zen downgraded shares of Carvana from a "buy" rating to a "hold" rating in a research report on Sunday. Twelve research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $383.47.

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.