Jennison Associates LLC Takes Position in Carvana Co. $CVNA

Key Points

• Jennison Associates LLC initiated a new position in Carvana during the first quarter, buying 313,110 shares valued at about $98.4 million.
• Carvana recently reported better-than-expected earnings, posting $1.69 EPS versus $0.32 expected and revenue of $6.43 billion versus $6.12 billion estimated.
• Despite strong results and bullish analyst coverage, there has been notable insider selling, including sales by Director Ira J. Platt and COO Benjamin E. Huston, while analysts maintain a Moderate Buy consensus with a $92.92 target price.

Jennison Associates LLC bought a new position in shares of Carvana Co. (NYSE:CVNA - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 313,110 shares of the company's stock, valued at approximately $98,436,000. Jennison Associates LLC owned 0.14% of Carvana at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Royal Bank of Canada increased its holdings in shares of Carvana by 40.8% in 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 period. Geneos Wealth Management Inc. boosted its stake in Carvana by 251.4% during the first quarter. Geneos Wealth Management Inc. now owns 253 shares of the company's stock valued at $53,000 after buying an additional 181 shares during the period. Cerity Partners LLC grew its position 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 buying an additional 1,226 shares in the last quarter. AXA S.A. grew its position 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 buying an additional 3,288 shares in the last quarter. Finally, NewEdge Advisors LLC increased its stake in Carvana by 9.1% in the 2nd quarter. NewEdge Advisors LLC now owns 9,893 shares of the company's stock worth $3,334,000 after acquiring an additional 825 shares during the last quarter. 56.71% of the stock is currently owned by hedge funds and other institutional investors.

Carvana Price Performance

Shares of Carvana stock opened at $67.50 on Monday. The firm has a market capitalization of $74.04 billion, a PE ratio of 41.06, a price-to-earnings-growth ratio of 11.34 and a beta of 3.46. The company has a current ratio of 4.09, a quick ratio of 2.57 and a debt-to-equity ratio of 1.05. Carvana Co. has a 12 month low of $54.46 and a 12 month high of $97.38. The business's 50-day moving average price is $67.86 and its 200-day moving average price is $72.29.

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

Insider Transactions at Carvana

In other news, Director Ira J. Platt sold 15,000 shares of the business's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $67.83, for a total value of $1,017,450.00. Following the completion of the sale, the director directly owned 186,470 shares in the company, valued at approximately $12,648,260.10. The trade was a 7.45% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, COO Benjamin E. Huston sold 50,000 shares of the company's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $68.55, for a total transaction of $3,427,500.00. Following the completion of the sale, the chief operating officer directly owned 458,755 shares of the company's stock, valued at $31,447,655.25. This trade represents a 9.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 396,962 shares of company stock worth $28,525,088. Corporate insiders own 15.19% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on CVNA shares. Barclays set a $93.00 price target on Carvana and gave the company an "overweight" rating in a research report on Thursday, May 14th. UBS Group reaffirmed a "buy" rating and issued a $104.00 target price (up from $97.00) on shares of Carvana in a research note on Thursday, April 30th. Royal Bank Of Canada reiterated an "outperform" rating and set a $92.00 target price on shares of Carvana in a research report on Friday, June 12th. BTIG Research reissued a "buy" rating and issued a $97.00 price target on shares of Carvana in a research note on Friday, June 5th. Finally, Needham & Company LLC reissued a "buy" rating and issued a $120.00 price target on shares of Carvana in a report on Friday, June 5th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $92.92.

Carvana Company 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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