Connor Clark & Lunn Investment Management Ltd. Makes New $1.05 Million Investment in Carvana Co. $CVNA

Key Points

• Connor Clark & Lunn Investment Management Ltd. has invested approximately $1.05 million in Carvana Co., acquiring 4,999 shares in the first quarter, according to a recent SEC filing.
• Several major institutional investors have also increased their holdings in Carvana, leading to institutional ownership of 56.71% of the company's stock.
• Carvana reported earnings of $1.28 per share for the latest quarter, exceeding expectations, with a year-over-year revenue increase of 41.9% to $4.84 billion.

Connor Clark & Lunn Investment Management Ltd. acquired a new stake in Carvana Co. (NYSE:CVNA - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 4,999 shares of the company's stock, valued at approximately $1,045,000.

Several other institutional investors and hedge funds have also modified their holdings of CVNA. Vanguard Group Inc. raised its holdings in Carvana by 9.7% in the 1st quarter. Vanguard Group Inc. now owns 12,534,843 shares of the company's stock worth $2,620,785,000 after purchasing an additional 1,109,476 shares during the period. Castle Hook Partners LP acquired a new position in Carvana in the 4th quarter worth about $116,020,000. BNP Paribas Financial Markets raised its holdings in Carvana by 89.8% in the 4th quarter. BNP Paribas Financial Markets now owns 1,018,321 shares of the company's stock worth $207,086,000 after purchasing an additional 481,912 shares during the period. Whale Rock Capital Management LLC raised its holdings in Carvana by 29.8% in the 4th quarter. Whale Rock Capital Management LLC now owns 1,214,679 shares of the company's stock worth $247,017,000 after purchasing an additional 278,760 shares during the period. Finally, Worldquant Millennium Advisors LLC acquired a new position in shares of Carvana during the fourth quarter valued at approximately $51,091,000. Institutional investors and hedge funds own 56.71% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have commented on CVNA. Needham & Company LLC increased their target price on Carvana from $340.00 to $500.00 and gave the company a "buy" rating in a report on Thursday, July 31st. JMP Securities increased their target price on Carvana from $440.00 to $460.00 and gave the company a "market outperform" rating in a report on Thursday, July 31st. Wedbush upgraded Carvana to a "hold" rating in a research report on Thursday, May 8th. DA Davidson upped their price target on Carvana from $260.00 to $380.00 and gave the company a "neutral" rating in a research report on Thursday, July 31st. Finally, Citigroup restated an "outperform" rating on shares of Carvana in a research report on Thursday, July 31st. Twelve research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $383.47.

Insiders Place Their Bets

In related news, major shareholder Ernest C. Garcia II sold 100,000 shares of the stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $346.99, for a total value of $34,699,000.00. Following the completion of the transaction, the insider directly owned 37,092,317 shares in the company, valued at approximately $12,870,663,075.83. This represents a 0.27% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders sold 3,036,140 shares of company stock valued at $1,057,170,571 in the last ninety days. Corporate insiders own 17.12% of the company's stock.

Carvana Price Performance

Shares of CVNA stock traded up $0.7380 during trading hours on Thursday, reaching $339.3480. The company had a trading volume of 1,608,167 shares, compared to its average volume of 3,350,515. The company has a market capitalization of $73.03 billion, a price-to-earnings ratio of 85.05, a PEG ratio of 1.12 and a beta of 3.57. Carvana Co. has a 12-month low of $124.39 and a 12-month high of $413.33. The company has a debt-to-equity ratio of 2.51, a quick ratio of 2.58 and a current ratio of 4.00. The stock has a fifty day moving average of $338.88 and a 200-day moving average of $278.17.

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

About Carvana

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.