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

Key Points

• Hsbc Holdings PLC increased its stake in Carvana Co. by 69%, owning 72,632 shares valued at approximately $15.25 million as of its latest SEC filing.
• Carvana reported $1.28 earnings per share for the last quarter, exceeding analysts' estimates by $0.19, with revenue of $4.84 billion reflecting a year-over-year growth of 41.9%.
• Insider trading activity included CEO Ernest C. Garcia III selling 10,000 shares for about $3.38 million, while major shareholder Ernest C. Garcia II sold 95,087 shares totaling over $33 million.

Hsbc Holdings PLC boosted its stake in shares of Carvana Co. (NYSE:CVNA - Free Report) by 69.0% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 72,632 shares of the company's stock after purchasing an additional 29,658 shares during the period. Hsbc Holdings PLC's holdings in Carvana were worth $15,247,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in CVNA. Brooklyn Investment Group lifted its position in Carvana by 961.5% during the first quarter. Brooklyn Investment Group now owns 138 shares of the company's stock valued at $29,000 after purchasing an additional 125 shares during the period. N.E.W. Advisory Services LLC bought a new position in Carvana during the first quarter valued at approximately $33,000. Versant Capital Management Inc lifted its position in Carvana by 39.4% during the first quarter. Versant Capital Management Inc now owns 290 shares of the company's stock valued at $61,000 after purchasing an additional 82 shares during the period. Strategic Investment Solutions Inc. IL bought a new position in Carvana during the first quarter valued at approximately $90,000. Finally, Gordian Capital Singapore Pte Ltd bought a new position in Carvana in the fourth quarter worth approximately $98,000. Institutional investors own 56.71% of the company's stock.

Carvana Price Performance

Shares of CVNA stock traded up $8.65 on Thursday, hitting $376.00. 1,003,838 shares of the stock traded hands, compared to its average volume of 4,087,328. The firm has a market cap of $80.91 billion, a price-to-earnings ratio of 94.21, a PEG ratio of 1.23 and a beta of 3.57. Carvana Co. has a 52 week low of $124.39 and a 52 week high of $413.33. The firm has a 50 day simple moving average of $344.32 and a two-hundred day simple moving average of $281.06. The company has a debt-to-equity ratio of 2.51, a current ratio of 4.00 and a quick ratio of 2.58.

Carvana (NYSE:CVNA - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $1.28 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.09 by $0.19. The company had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.54 billion. Carvana had a net margin of 3.46% and a return on equity of 40.57%. Carvana's revenue for the quarter was up 41.9% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.05) EPS. As a group, equities research analysts predict that Carvana Co. will post 2.85 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Royal Bank Of Canada increased their price target on shares of Carvana from $400.00 to $460.00 and gave the stock an "outperform" rating in a research report on Thursday, July 31st. Wedbush upgraded shares of Carvana to a "hold" rating in a research report on Thursday, May 8th. DA Davidson increased their price target on shares of Carvana from $260.00 to $380.00 and gave the stock a "neutral" rating in a research report on Thursday, July 31st. Citigroup reiterated an "outperform" rating on shares of Carvana in a research report on Thursday, July 31st. Finally, Morgan Stanley increased their price target on shares of Carvana from $280.00 to $290.00 and gave the stock an "overweight" rating in a research report on Thursday, May 15th. Twelve research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $383.47.

Insiders Place Their Bets

In other Carvana news, CEO Ernest C. Garcia III sold 10,000 shares of Carvana stock in a transaction on Monday, August 25th. The shares were sold at an average price of $361.45, for a total value of $3,614,500.00. Following the sale, the chief executive officer directly owned 506,440 shares in the company, valued at approximately $183,052,738. The trade was a 1.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, major shareholder Ernest C. Garcia II sold 95,087 shares of Carvana stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $349.09, for a total transaction of $33,193,920.83. Following the completion of the sale, the insider owned 34,442,317 shares in the company, valued at approximately $12,023,468,441.53. This represents a 0.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 3,003,640 shares of company stock worth $1,047,877,822. 17.12% of the stock is currently owned by insiders.

Carvana Company 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.