Hsbc Holdings PLC Grows Stock Position in Carvana Co. $CVNA

Key Points

• HSBC Holdings PLC boosted its Carvana stake by 239.6% in the fourth quarter, holding 221,727 shares worth about $93.7 million after adding 156,430 shares.
• Carvana reported strong quarterly earnings, posting $1.69 EPS versus the $0.32 consensus estimate and revenue of $6.43 billion, above expectations of $6.12 billion.
• Despite insider selling and some mixed analyst moves, Wall Street still rates Carvana Moderate Buy overall, with an average price target of $93.14.

Hsbc Holdings PLC increased its stake in shares of Carvana Co. (NYSE:CVNA - Free Report) by 239.6% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 221,727 shares of the company's stock after purchasing an additional 156,430 shares during the quarter. Hsbc Holdings PLC owned 0.10% of Carvana worth $93,748,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the company. Thurston Springer Miller Herd & Titak Inc. purchased a new position in Carvana during the 4th quarter worth $29,000. Farmers & Merchants Investments Inc. purchased a new stake in shares of Carvana in the fourth quarter valued at about $29,000. Motiv8 Investments LLC purchased a new stake in shares of Carvana in the fourth quarter valued at about $33,000. Salomon & Ludwin LLC increased its stake in shares of Carvana by 112.5% during the fourth quarter. Salomon & Ludwin LLC now owns 85 shares of the company's stock worth $37,000 after acquiring an additional 45 shares during the period. Finally, Washington Trust Advisors Inc. acquired a new position in shares of Carvana during the third quarter worth about $38,000. 56.71% of the stock is currently owned by hedge funds and other institutional investors.

Carvana Price Performance

CVNA stock opened at $66.56 on Monday. The company has a current ratio of 4.09, a quick ratio of 2.57 and a debt-to-equity ratio of 1.05. The company's 50-day moving average price is $71.59 and its 200 day moving average price is $75.09. Carvana Co. has a 52 week low of $54.46 and a 52 week high of $97.38. The company has a market cap of $73.01 billion, a P/E ratio of 40.49, a P/E/G ratio of 11.23 and a beta of 3.45.

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

Insiders Place Their Bets

In related news, VP Stephen R. Palmer sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $70.42, for a total value of $352,100.00. Following the completion of the transaction, the vice president directly owned 152,955 shares of the company's stock, valued at $10,771,091.10. This trade represents a 3.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at 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 Carvana 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 transaction, the director directly owned 214,960 shares of the company's stock, valued at approximately $15,047,200. This represents 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. Over the last quarter, insiders have sold 415,812 shares of company stock worth $29,056,896. 15.19% of the stock is owned by insiders.

Analyst Ratings Changes

A number of equities research analysts recently commented on CVNA shares. Citizens Jmp raised their price objective on shares of Carvana from $92.00 to $103.00 and gave the company a "market outperform" rating in a research report on Friday, May 1st. Jefferies Financial Group dropped their target price on Carvana from $97.00 to $95.00 and set a "buy" rating on the stock in a research report on Tuesday, April 14th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $107.40 target price on shares of Carvana in a research note on Thursday, April 30th. Weiss Ratings cut Carvana from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, March 24th. Finally, Wells Fargo & Company lifted their price target on Carvana from $85.00 to $95.00 and gave the company an "overweight" rating in a research note on Thursday, April 30th. Two equities research 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 stock. Based on data from MarketBeat, Carvana presently has a consensus rating of "Moderate Buy" and an average target price of $93.14.

About Carvana

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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