Pacer Advisors Inc. Lowers Stock Holdings in Carvana Co. $CVNA

Key Points

• Pacer Advisors cut its Carvana stake by 97.9% in the first quarter, selling 339,030 shares and retaining 7,270 shares valued at approximately $2.29 million. Institutional investors collectively own 56.71% of the company.
• Carvana reported quarterly revenue of $7.38 billion, up 52.4% year over year and above estimates, while adjusted earnings of $0.42 per share exceeded expectations by $0.03.
• Analysts maintain a generally bullish view, with a consensus “Moderate Buy” rating and an average price target of $84.14, although insiders sold 391,372 shares worth roughly $26.6 million over the past 90 days.

Pacer Advisors Inc. reduced its holdings in Carvana Co. (NYSE:CVNA - Free Report) by 97.9% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 7,270 shares of the company's stock after selling 339,030 shares during the period. Pacer Advisors Inc.'s holdings in Carvana were worth $2,286,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Ascentis Independent Advisors purchased a new position in shares of Carvana during the 1st quarter valued at approximately $26,000. Farmers & Merchants Investments Inc. purchased a new stake in Carvana in the 4th quarter worth $29,000. Annis Gardner Whiting Capital Advisors LLC raised its position in Carvana by 152.6% during the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 96 shares of the company's stock worth $30,000 after acquiring an additional 58 shares during the period. Motiv8 Investments LLC acquired a new position in Carvana during the fourth quarter worth $33,000. Finally, Whipplewood Advisors LLC purchased a new position in Carvana during the first quarter valued at $36,000. 56.71% of the stock is currently owned by hedge funds and other institutional investors.

Carvana Stock Performance

CVNA opened at $70.83 on Friday. The firm has a market capitalization of $77.95 billion, a PE ratio of 39.18, a PEG ratio of 2.52 and a beta of 3.46. Carvana Co. has a twelve month low of $54.46 and a twelve month high of $97.38. The firm's 50-day moving average price is $66.55 and its 200 day moving average price is $69.82. The company has a current ratio of 3.93, a quick ratio of 2.33 and a debt-to-equity ratio of 0.94.

Carvana (NYSE:CVNA - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The company reported $0.42 EPS for the quarter, beating analysts' consensus estimates of $0.39 by $0.03. Carvana had a net margin of 6.26% and a return on equity of 37.06%. The company had revenue of $7.38 billion during the quarter, compared to the consensus estimate of $6.90 billion. During the same quarter in the prior year, the firm earned $1.51 EPS. Carvana's quarterly revenue was up 52.4% on a year-over-year basis. As a group, sell-side analysts expect that Carvana Co. will post 1.65 EPS for the current fiscal year.

Analysts Set New Price Targets

Several analysts have recently issued reports on the stock. Citigroup dropped their target price on shares of Carvana from $93.00 to $90.00 and set a "buy" rating on the stock in a research report on Friday, July 31st. JPMorgan Chase & Co. raised their price target on shares of Carvana from $91.00 to $93.00 and gave the company an "overweight" rating in a research note on Thursday, April 30th. Barclays lowered their price objective on Carvana from $94.00 to $93.00 and set an "overweight" rating on the stock in a report on Friday, July 31st. Bank of America boosted their price objective on Carvana from $72.00 to $82.00 and gave the stock a "neutral" rating in a research note on Tuesday, April 21st. Finally, DA Davidson set a $67.00 target price on Carvana in a research report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Carvana presently has a consensus rating of "Moderate Buy" and a consensus target price of $84.14.

Insiders Place Their Bets

In related news, VP Stephen R. Palmer sold 5,000 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $64.49, for a total value of $322,450.00. Following the completion of the sale, the vice president owned 136,909 shares of the company's stock, valued at approximately $8,829,261.41. This trade represents a 3.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Benjamin E. Huston sold 50,000 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $64.50, for a total value of $3,225,000.00. Following the completion of the sale, the chief operating officer directly owned 535,709 shares of the company's stock, valued at approximately $34,553,230.50. This represents a 8.54% decrease in their position. 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 ninety days, insiders sold 391,372 shares of company stock valued at $26,555,789. Insiders own 15.19% of the company's stock.

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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