Engle Capital Management L.P. Sells 37,456 Shares of Carvana Co. $CVNA

Key Points

• Engle Capital Management sharply cut its Carvana stake by 86.2% in the fourth quarter, selling 37,456 shares and leaving it with 6,000 shares worth about $2.53 million.
• Despite the sale, Carvana still has broad institutional support, with about 56.71% of shares held by hedge funds and other institutions; several firms recently increased their positions.
• Analysts remain generally positive on CVNA, with a Moderate Buy consensus and an average price target of $93.14, while the company also posted strong recent earnings that beat estimates.

Engle Capital Management L.P. reduced its stake in shares of Carvana Co. (NYSE:CVNA - Free Report) by 86.2% in the fourth quarter, according to its most recent filing with the SEC. The institutional investor owned 6,000 shares of the company's stock after selling 37,456 shares during the period. Carvana comprises approximately 1.0% of Engle Capital Management L.P.'s portfolio, making the stock its 25th biggest position. Engle Capital Management L.P.'s holdings in Carvana were worth $2,532,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in CVNA. Royal Bank of Canada boosted its holdings in Carvana by 40.8% during the first quarter. Royal Bank of Canada now owns 29,867 shares of the company's stock worth $6,243,000 after purchasing an additional 8,654 shares during the last quarter. Geneos Wealth Management Inc. boosted its holdings in Carvana by 251.4% during the first quarter. Geneos Wealth Management Inc. now owns 253 shares of the company's stock worth $53,000 after purchasing an additional 181 shares during the last quarter. Cerity Partners LLC boosted its holdings in Carvana by 28.8% during the second quarter. Cerity Partners LLC now owns 5,481 shares of the company's stock worth $1,847,000 after purchasing an additional 1,226 shares during the last quarter. AXA S.A. boosted its holdings in Carvana by 340.7% during the second quarter. AXA S.A. now owns 4,253 shares of the company's stock worth $1,433,000 after purchasing an additional 3,288 shares during the last quarter. Finally, NewEdge Advisors LLC boosted its holdings in Carvana by 9.1% during the second quarter. NewEdge Advisors LLC now owns 9,893 shares of the company's stock worth $3,334,000 after purchasing an additional 825 shares during the last quarter. 56.71% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about 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

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. DA Davidson boosted their price target on shares of Carvana from $64.00 to $67.00 and gave the stock a "neutral" rating in a report on Friday, May 1st. Barclays set a $93.00 price target on shares of Carvana and gave the stock an "overweight" rating in a report on Thursday, May 14th. Citizens Jmp lifted their target price on Carvana from $92.00 to $103.00 and gave the stock a "market outperform" rating in a research note on Friday, May 1st. UBS Group reiterated a "buy" rating and set a $104.00 target price (up from $97.00) on shares of Carvana in a research note on Thursday, April 30th. Finally, Citigroup reiterated an "outperform" rating on shares of Carvana in a research note on Friday, May 1st. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $93.14.

Insiders Place Their Bets

In other Carvana news, Director J Danforth Quayle sold 14,525 shares of the firm's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $70.00, for a total value of $1,016,750.00. Following the completion of the sale, the director directly owned 214,960 shares of the company's stock, valued at $15,047,200. This trade represents a 6.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Thomas Taira sold 5,597 shares of the firm's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $67.15, for a total value of $375,838.55. Following the completion of the sale, the insider directly owned 315,075 shares of the company's stock, valued at $21,157,286.25. This represents a 1.75% 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. Over the last ninety days, insiders sold 415,812 shares of company stock valued at $29,056,896. Company insiders own 15.19% of the company's stock.

Carvana Stock Performance

NYSE:CVNA 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. The business has a fifty day simple moving average of $71.47 and a two-hundred day simple moving average of $75.19. Carvana Co. has a 1 year low of $54.46 and a 1 year high of $97.38. The company has a market capitalization of $68.91 billion, a P/E ratio of 38.21, a P/E/G ratio of 11.82 and a beta of 3.45.

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

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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