Carvana Co. $CVNA Stock Position Lifted by Franklin Resources Inc.

Key Points

• Franklin Resources Inc. boosted its Carvana stake by 100.3% in Q3 to 495,382 shares, valued at about $186.9 million (≈0.23% ownership).
• Carvana reported a blowout quarter with EPS $4.22 vs. $1.10 expected and revenue of $5.60 billion (up 58% YoY), delivering a 6.92% net margin and 50.96% ROE.
• Despite the beat, shares are trading down (opened $292.70, down 5.4%) and below the 50-/200-day averages (~$390/$379); analysts have trimmed targets but the consensus is a "Moderate Buy" with an average target of ~$440.59, while insiders sold about $21.5M of stock last quarter (insiders own 17.12%).

Franklin Resources Inc. lifted its position in Carvana Co. (NYSE:CVNA - Free Report) by 100.3% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 495,382 shares of the company's stock after acquiring an additional 248,064 shares during the quarter. Franklin Resources Inc. owned 0.23% of Carvana worth $186,878,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in CVNA. ORG Partners LLC boosted its holdings in Carvana by 8,700.0% in the third quarter. ORG Partners LLC now owns 88 shares of the company's stock worth $33,000 after purchasing an additional 87 shares during the period. Steigerwald Gordon & Koch Inc. acquired a new stake in shares of Carvana during the third quarter worth $38,000. Washington Trust Advisors Inc. bought a new position in shares of Carvana in the 3rd quarter worth about $38,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main bought a new position in shares of Carvana in the 2nd quarter worth about $38,000. Finally, Elevation Point Wealth Partners LLC acquired a new position in shares of Carvana in the 2nd quarter valued at about $49,000. 56.71% of the stock is owned by institutional investors and hedge funds.

Carvana Trading Down 5.4%

Shares of NYSE:CVNA opened at $292.70 on Friday. The company has a 50 day moving average of $390.27 and a 200-day moving average of $379.11. The company has a current ratio of 4.31, a quick ratio of 2.73 and a debt-to-equity ratio of 1.15. The firm has a market cap of $64.06 billion, a P/E ratio of 36.41 and a beta of 3.60. Carvana Co. has a twelve month low of $148.25 and a twelve month high of $486.89.

Carvana (NYSE:CVNA - Get Free Report) last posted its quarterly earnings data on Wednesday, February 18th. The company reported $4.22 EPS for the quarter, beating analysts' consensus estimates of $1.10 by $3.12. The business had revenue of $5.60 billion for the quarter, compared to analyst estimates of $5.24 billion. Carvana had a net margin of 6.92% and a return on equity of 50.96%. The business's revenue for the quarter was up 58.0% on a year-over-year basis. During the same quarter last year, the business earned $0.56 earnings per share. As a group, analysts anticipate that Carvana Co. will post 2.85 earnings per share for the current fiscal year.

Insider Activity at Carvana

In other news, insider Thomas Taira sold 1,174 shares of the business's stock in a transaction on Thursday, January 8th. The stock was sold at an average price of $447.00, for a total value of $524,778.00. Following the sale, the insider owned 68,252 shares of the company's stock, valued at approximately $30,508,644. The trade was a 1.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Mark W. Jenkins sold 12,750 shares of the company's stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $403.02, for a total value of $5,138,505.00. Following the completion of the sale, the chief financial officer owned 204,036 shares of the company's stock, valued at approximately $82,230,588.72. This trade represents a 5.88% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 53,574 shares of company stock worth $21,463,735 in the last quarter. Company insiders own 17.12% of the company's stock.

Wall Street Analysts Forecast Growth

CVNA has been the topic of several research reports. Wedbush dropped their price objective on shares of Carvana from $500.00 to $425.00 and set an "outperform" rating on the stock in a research note on Thursday, February 19th. BTIG Research decreased their target price on Carvana from $535.00 to $455.00 and set a "buy" rating for the company in a research note on Thursday, February 19th. Citigroup lowered their target price on Carvana from $550.00 to $465.00 and set a "buy" rating for the company in a report on Thursday, February 19th. Wells Fargo & Company dropped their price target on Carvana from $525.00 to $425.00 and set an "overweight" rating on the stock in a research report on Thursday, February 19th. Finally, Gordon Haskett cut their price target on Carvana from $435.00 to $350.00 and set a "hold" rating on the stock in a report on Friday, February 20th. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $440.59.

Carvana Company 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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