Primecap Management Co. CA Boosts Stock Holdings in Carvana Co. (NYSE:CVNA)

Key Points

• Primecap Management Co. CA increased its stake in Carvana Co. by 13.8%, acquiring an additional 24,200 shares, bringing its total ownership to 199,100 shares valued at approximately $41.63 million.
• Vanguard Group Inc. also boosted its holdings in Carvana by 9.7%, now owning over 12.5 million shares worth around $2.62 billion.
• Analysts remain optimistic, with various firms raising price targets for Carvana, including Wells Fargo's target increase from $390 to $425 and JPMorgan's from $350 to $415.

Primecap Management Co. CA grew its holdings in Carvana Co. (NYSE:CVNA - Free Report) by 13.8% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 199,100 shares of the company's stock after acquiring an additional 24,200 shares during the period. Primecap Management Co. CA owned about 0.09% of Carvana worth $41,628,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also recently made changes to their positions in the company. J.Safra Asset Management Corp lifted its holdings in Carvana by 140.8% in the 1st quarter. J.Safra Asset Management Corp now owns 3,390 shares of the company's stock worth $709,000 after purchasing an additional 1,982 shares in the last quarter. Worldquant Millennium Advisors LLC purchased a new position in shares of Carvana in the fourth quarter worth $51,091,000. Farther Finance Advisors LLC boosted its position in shares of Carvana by 333.1% during the first quarter. Farther Finance Advisors LLC now owns 3,482 shares of the company's stock worth $740,000 after acquiring an additional 2,678 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH bought a new position in shares of Carvana during the fourth quarter worth $36,527,000. Finally, Brucke Financial Inc. purchased a new position in Carvana during the fourth quarter valued at $415,000. Institutional investors own 56.71% of the company's stock.

Carvana Trading Down 2.6%

Shares of CVNA traded down $9.32 during mid-day trading on Friday, reaching $348.43. 2,819,174 shares of the company's stock traded hands, compared to its average volume of 3,227,839. The company has a debt-to-equity ratio of 2.51, a current ratio of 4.00 and a quick ratio of 2.58. The stock's 50-day moving average is $337.34 and its two-hundred day moving average is $271.80. Carvana Co. has a 12 month low of $124.39 and a 12 month high of $413.33. The stock has a market cap of $74.98 billion, a P/E ratio of 87.33, a P/E/G ratio of 1.18 and a beta of 3.57.

Carvana (NYSE:CVNA - Get Free Report) last posted its quarterly earnings data 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. Carvana had a return on equity of 40.57% and a net margin of 3.46%. The company had revenue of $4.84 billion during the quarter, compared to analysts' expectations of $4.54 billion. During the same quarter in the previous year, the business earned ($0.05) EPS. Carvana's revenue was up 41.9% compared to the same quarter last year. Research analysts forecast that Carvana Co. will post 2.85 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several analysts have commented on CVNA shares. William Blair reissued an "outperform" rating on shares of Carvana in a report on Wednesday, July 23rd. Morgan Stanley boosted their target price on Carvana from $280.00 to $290.00 and gave the stock an "overweight" rating in a research report on Thursday, May 15th. Oppenheimer upgraded Carvana from a "market perform" rating to an "outperform" rating and set a $450.00 price target for the company in a report on Friday, July 25th. JMP Securities upped their price objective on Carvana from $440.00 to $460.00 and gave the stock a "market outperform" rating in a report on Thursday, July 31st. Finally, Citigroup reissued an "outperform" rating on shares of Carvana in a report on Thursday, July 31st. Six research analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company's stock. According to MarketBeat, Carvana currently has a consensus rating of "Moderate Buy" and a consensus price target of $379.65.

Insider Transactions at Carvana

In related news, major shareholder Ernest C. Garcia II sold 93,376 shares of Carvana stock in a transaction dated Thursday, July 31st. The shares were sold at an average price of $394.16, for a total transaction of $36,805,084.16. Following the completion of the sale, the insider owned 6,624 shares in the company, valued at $2,610,915.84. This trade represents a 93.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, major shareholder Ernest C. Garcia II sold 100,000 shares of the company's stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $346.99, for a total transaction of $34,699,000.00. Following the completion of the transaction, the insider owned 37,092,317 shares in the company, valued at $12,870,663,075.83. This represents a 0.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 2,913,047 shares of company stock worth $1,004,044,920. Company insiders own 17.12% of the company's stock.

About Carvana

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.