Electron Capital Partners LLC Acquires New Holdings in Carvana Co. $CVNA

Key Points

• Electron Capital Partners LLC disclosed a new stake in Carvana during the fourth quarter, buying 90,864 shares worth about $38.3 million. The position represents roughly 1.8% of the fund’s portfolio and is its 22nd largest holding.
• Wall Street sentiment remains mostly positive on CVNA, with analysts assigning an average Moderate Buy rating and an average price target of $93.14. Recent target hikes from firms like BTIG, Stephens, and Citizens JMP underscore continued optimism.
• Carvana’s latest quarterly results were strong, as the company posted EPS of $1.69 versus the $0.32 consensus and revenue of $6.43 billion, beating expectations. The stock was trading at $62.82, below its 52-week high of $97.38, while insiders recently sold shares in pre-arranged transactions.

Electron Capital Partners LLC acquired a new stake in shares of Carvana Co. (NYSE:CVNA - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 90,864 shares of the company's stock, valued at approximately $38,346,000. Carvana makes up approximately 1.8% of Electron Capital Partners LLC's portfolio, making the stock its 22nd largest position.

Several other hedge funds also recently bought and sold shares of CVNA. Royal Bank of Canada grew 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 acquiring an additional 8,654 shares in the last quarter. Geneos Wealth Management Inc. grew its stake in Carvana by 251.4% during the first quarter. Geneos Wealth Management Inc. now owns 253 shares of the company's stock valued at $53,000 after acquiring an additional 181 shares in the last quarter. Cerity Partners LLC grew its stake in Carvana by 28.8% during the second quarter. Cerity Partners LLC now owns 5,481 shares of the company's stock valued at $1,847,000 after acquiring an additional 1,226 shares in the last quarter. AXA S.A. grew its stake in Carvana by 340.7% during the second quarter. AXA S.A. now owns 4,253 shares of the company's stock valued at $1,433,000 after acquiring an additional 3,288 shares in the last quarter. Finally, NewEdge Advisors LLC grew its stake in Carvana by 9.1% during the second quarter. NewEdge Advisors LLC now owns 9,893 shares of the company's stock valued at $3,334,000 after acquiring an additional 825 shares in the last quarter. Hedge funds and other institutional investors own 56.71% of the company's stock.

Analysts Set New Price Targets

CVNA has been the subject of a number of research reports. BTIG Research reissued a "buy" rating and issued a $97.00 price target on shares of Carvana in a research note on Friday, June 5th. BNP Paribas Exane boosted their price target on shares of Carvana from $77.60 to $85.80 in a research note on Thursday, April 30th. William Blair reissued an "outperform" rating on shares of Carvana in a research note on Friday, March 13th. Stephens boosted their price target on shares of Carvana from $86.00 to $97.00 in a research note on Thursday, April 30th. Finally, Citizens Jmp boosted their price target on shares of Carvana from $92.00 to $103.00 and gave the stock a "market outperform" rating in a research note on Friday, May 1st. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Carvana currently has an average rating of "Moderate Buy" and an average price target of $93.14.

Carvana Price Performance

CVNA stock opened at $62.82 on Thursday. The company has a debt-to-equity ratio of 1.05, a current ratio of 4.09 and a quick ratio of 2.57. Carvana Co. has a one year low of $54.46 and a one year high of $97.38. The stock has a market cap of $68.91 billion, a PE ratio of 38.21, a P/E/G ratio of 11.82 and a beta of 3.45. The firm has a 50 day simple moving average of $71.47 and a two-hundred day simple moving average of $75.19.

Carvana (NYSE:CVNA - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported $1.69 EPS for the quarter, topping analysts' consensus estimates of $0.32 by $1.37. The business had revenue of $6.43 billion during the quarter, compared to analysts' expectations of $6.12 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%. On average, analysts predict that Carvana Co. will post 1.58 EPS for the current fiscal year.

Insider Transactions at Carvana

In other news, VP Stephen R. Palmer sold 5,000 shares of the business's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $70.42, for a total value of $352,100.00. Following the completion of the sale, the vice president directly owned 152,955 shares in the company, valued at approximately $10,771,091.10. The trade was a 3.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director J Danforth Quayle sold 14,525 shares of the business's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $70.00, for a total transaction of $1,016,750.00. Following the completion of the sale, the director owned 214,960 shares of the company's stock, valued at approximately $15,047,200. The trade was a 6.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 415,812 shares of company stock worth $29,056,896. Corporate insiders own 15.19% of the company's stock.

Key Stories Impacting Carvana

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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