Federated Hermes Inc. Sells 136,464 Shares of Carvana Co. (NYSE:CVNA)

Key Points

• Federated Hermes Inc. significantly reduced its stake in Carvana Co. by 61.4% during the first quarter, selling 136,464 shares and leaving it with 85,734 shares valued at approximately $17.9 million.
• Carvana reported a quarterly earnings per share of $1.28, exceeding expectations and showing a 41.9% revenue increase from the previous year, with total revenues reaching $4.84 billion.
• Several institutions adjusted their investments in Carvana, with 56.71% of the stock now owned by hedge funds and institutional investors, reflecting changing market sentiments around the company.

Federated Hermes Inc. reduced its position in Carvana Co. (NYSE:CVNA - Free Report) by 61.4% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 85,734 shares of the company's stock after selling 136,464 shares during the quarter. Federated Hermes Inc.'s holdings in Carvana were worth $17,925,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in CVNA. Yousif Capital Management LLC increased its position in shares of Carvana by 4.1% during the 1st quarter. Yousif Capital Management LLC now owns 1,266 shares of the company's stock worth $265,000 after purchasing an additional 50 shares during the last quarter. Versant Capital Management Inc boosted its holdings in Carvana by 39.4% during the 1st quarter. Versant Capital Management Inc now owns 290 shares of the company's stock valued at $61,000 after acquiring an additional 82 shares during the period. IFP Advisors Inc boosted its holdings in Carvana by 16.0% during the 1st quarter. IFP Advisors Inc now owns 638 shares of the company's stock valued at $133,000 after acquiring an additional 88 shares during the period. Signaturefd LLC boosted its holdings in Carvana by 5.1% during the 1st quarter. Signaturefd LLC now owns 1,902 shares of the company's stock valued at $398,000 after acquiring an additional 93 shares during the period. Finally, Cerity Partners LLC boosted its holdings in Carvana by 2.3% during the 4th quarter. Cerity Partners LLC now owns 4,314 shares of the company's stock valued at $845,000 after acquiring an additional 99 shares during the period. 56.71% of the stock is owned by institutional investors and hedge funds.

Carvana Stock Down 5.6%

Shares of NYSE:CVNA traded down $21.78 on Friday, reaching $368.39. The company had a trading volume of 5,040,022 shares, compared to its average volume of 2,911,783. Carvana Co. has a twelve month low of $118.50 and a twelve month high of $413.33. The company has a quick ratio of 2.70, a current ratio of 4.00 and a debt-to-equity ratio of 2.51. The stock has a market capitalization of $78.89 billion, a P/E ratio of 92.33, a P/E/G ratio of 1.39 and a beta of 3.57. The stock has a 50-day moving average price of $333.58 and a 200 day moving average price of $267.81.

Carvana (NYSE:CVNA - Get Free Report) last posted 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. Carvana had a return on equity of 40.57% and a net margin of 3.46%. The business had revenue of $4.84 billion during the quarter, compared to analysts' expectations of $4.54 billion. During the same quarter in the previous year, the firm earned ($0.05) EPS. The firm's revenue was up 41.9% compared to the same quarter last year. On average, equities analysts expect that Carvana Co. will post 2.85 EPS for the current year.

Insider Activity at Carvana

In related news, CEO Ernest C. Garcia III sold 2,700 shares of the stock in a transaction that occurred on Thursday, July 31st. The stock was sold at an average price of $403.83, for a total transaction of $1,090,341.00. Following the sale, the chief executive officer directly owned 591,440 shares in the company, valued at $238,841,215.20. This represents a 0.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Ernest C. Garcia II sold 50,000 shares of the stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $332.21, for a total value of $16,610,500.00. Following the sale, the insider owned 35,342,792 shares in the company, valued at approximately $11,741,228,930.32. This trade represents a 0.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 2,343,765 shares of company stock worth $780,120,744. Corporate insiders own 17.12% of the company's stock.

Analyst Ratings Changes

CVNA has been the subject of a number of research analyst reports. William Blair restated an "outperform" rating on shares of Carvana in a report on Wednesday, July 23rd. Royal Bank Of Canada raised their target price on Carvana from $400.00 to $460.00 and gave the company an "outperform" rating in a report on Thursday. Bank of America raised their target price on Carvana from $375.00 to $425.00 and gave the company a "buy" rating in a report on Thursday. Oppenheimer upgraded Carvana from a "market perform" rating to an "outperform" rating and set a $450.00 target price for the company in a report on Friday, July 25th. Finally, Robert W. Baird lifted their price objective on Carvana from $200.00 to $275.00 and gave the company a "neutral" rating in a research note on Thursday, May 8th. Six equities research analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company's stock. According to data from MarketBeat, Carvana currently has an average rating of "Moderate Buy" and a consensus price target of $379.65.

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.