First Trust Advisors LP Raises Holdings in Carvana Co. $CVNA

Key Points

• First Trust Advisors increased its stake in Carvana by 4.6% to 501,834 shares (about $189.3 million), and institutional investors now own roughly 56.71% of the company.
• Q4 earnings beat: Carvana reported $4.22 EPS vs. $1.10 expected and $5.60 billion in revenue (up 58% year‑over‑year), but retail GPU declined and higher reconditioning/logistics costs pressured margins.
• Analyst sentiment is mixed—Carvana has a consensus rating of "Moderate Buy" with a $440.59 consensus price target amid several price‑target cuts and upgrades—and insiders sold about 300,673 shares (~$133.3 million) last quarter.

First Trust Advisors LP increased its holdings in Carvana Co. (NYSE:CVNA - Free Report) by 4.6% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 501,834 shares of the company's stock after buying an additional 22,298 shares during the period. First Trust Advisors LP owned about 0.23% of Carvana worth $189,312,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds also recently bought and sold shares of the company. SJS Investment Consulting Inc. boosted its holdings in shares of Carvana by 28.3% in the 3rd quarter. SJS Investment Consulting Inc. now owns 136 shares of the company's stock valued at $51,000 after acquiring an additional 30 shares during the last quarter. MAI Capital Management increased its stake in shares of Carvana by 1.8% in the second quarter. MAI Capital Management now owns 1,757 shares of the company's stock worth $592,000 after acquiring an additional 31 shares during the period. Gilder Gagnon Howe & Co. LLC raised its holdings in shares of Carvana by 1.7% during the second quarter. Gilder Gagnon Howe & Co. LLC now owns 1,846 shares of the company's stock worth $622,000 after purchasing an additional 31 shares during the last quarter. MassMutual Private Wealth & Trust FSB raised its holdings in shares of Carvana by 23.1% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 165 shares of the company's stock worth $62,000 after purchasing an additional 31 shares during the last quarter. Finally, WPG Advisers LLC lifted its position in Carvana by 17.2% during the third quarter. WPG Advisers LLC now owns 218 shares of the company's stock valued at $82,000 after purchasing an additional 32 shares during the period. Hedge funds and other institutional investors own 56.71% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have commented on the stock. DA Davidson lowered their price target on shares of Carvana from $470.00 to $320.00 and set a "neutral" rating on the stock in a report on Thursday, February 19th. Argus upgraded Carvana to a "strong-buy" rating in a research note on Tuesday, March 3rd. Weiss Ratings raised Carvana from a "hold (c)" rating to a "buy (b-)" rating in a report on Thursday, February 19th. Barclays lowered their target price on Carvana from $530.00 to $450.00 and set an "overweight" rating on the stock in a research note on Friday, February 20th. Finally, Bank of America reduced their price target on Carvana from $460.00 to $400.00 and set a "buy" rating for the company in a research report on Thursday, February 19th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $440.59.

Carvana News Summary

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Zacks says Carvana has a clear path to a 13.5% adjusted EBITDA margin over time as fixed‑cost leverage and operational efficiencies scale (Q4 dipped to 9.1%). Will Carvana's Fixed Cost Leverage Drive Its EBITDA Margin?
• Positive Sentiment: Zacks highlights Carvana’s push toward vertical integration (in‑house reconditioning, logistics, financing) as a structural margin tailwind and notes strong customer referrals that could support market‑share gains. Will Vertical Integration Strengthen Carvana's Prospects?
• Positive Sentiment: Wholesale used‑vehicle prices (Manheim index) rose year‑over‑year in February, which can support retail pricing and gross profit per unit as the spring selling season begins. Used vehicle prices jump ahead of spring selling season optimism
• Neutral Sentiment: Industry and analyst sentiment remains generally constructive: Carvana has a consensus rating around "Moderate Buy," reflecting mixed analyst views on near‑term execution vs. long‑term opportunity. Carvana Receives Consensus Rating
• Negative Sentiment: Retail GPU fell in Q4 (roughly a $255 decline), and rising reconditioning and logistics costs pressured margins; management says automation/scale should help, but near‑term recovery is uncertain. Carvana's GPU Declines in Q4: What Will Drive Improvement?
• Negative Sentiment: Several analysts have trimmed near‑term estimates and price targets (e.g., Citi cut its PT), and headlines flag a "rough start" to 2026—these revisions are weighing on sentiment and the stock. Carvana Stock Continues to Slide As Analysts Lower Price Targets
• Negative Sentiment: Zacks Research issued mixed estimate changes: small raises for some later periods but meaningful cuts to near‑term quarters (Q2 2026, Q3 2027), underscoring uncertainty over short‑term profitability.

Carvana Stock Down 4.1%

CVNA opened at $317.69 on Friday. Carvana Co. has a fifty-two week low of $148.25 and a fifty-two week high of $486.89. The company has a debt-to-equity ratio of 1.15, a quick ratio of 2.73 and a current ratio of 4.31. The company has a fifty day moving average of $399.42 and a two-hundred day moving average of $380.27. The stock has a market capitalization of $69.53 billion, a price-to-earnings ratio of 39.51 and a beta of 3.60.

Carvana (NYSE:CVNA - Get Free Report) last issued its quarterly earnings data on Wednesday, February 18th. The company reported $4.22 earnings per share for the quarter, topping analysts' consensus estimates of $1.10 by $3.12. Carvana had a net margin of 6.92% and a return on equity of 50.96%. The business had revenue of $5.60 billion during the quarter, compared to the consensus estimate of $5.24 billion. During the same quarter in the prior year, the firm posted $0.56 earnings per share. The company's revenue was up 58.0% compared to the same quarter last year. On average, research analysts expect that Carvana Co. will post 2.85 earnings per share for the current year.

Insider Transactions at Carvana

In other Carvana news, insider Paul W. Breaux sold 20,000 shares of the firm's stock in a transaction that occurred on Monday, December 8th. The stock was sold at an average price of $438.50, for a total value of $8,770,000.00. Following the sale, the insider directly owned 69,289 shares of the company's stock, valued at approximately $30,383,226.50. This trade represents a 22.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Benjamin E. Huston sold 40,000 shares of the business's stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $439.50, for a total value of $17,580,000.00. Following the completion of the sale, the chief operating officer owned 100,758 shares of the company's stock, valued at $44,283,141. This trade represents a 28.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 300,673 shares of company stock worth $133,268,531 over the last quarter. Company insiders own 17.12% of the company's stock.

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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