Resona Asset Management Co. Ltd. Increases Position in Carvana Co. $CVNA

Key Points

• Resona Asset Management Co. Ltd. increased its stake in Carvana Co. by 5.9% in the first quarter, raising its holdings to 33,899 shares worth approximately $7.07 million.
• Major shareholder Ernest C. Garcia II sold 95,087 shares for over $33 million, decreasing his ownership by 0.28% to around 34.4 million shares.
• Carvana reported a strong earnings report, outperforming analysts' estimates with a 41.9% year-over-year revenue increase and an EPS of $1.28 for the quarter.

Resona Asset Management Co. Ltd. lifted its stake in shares of Carvana Co. (NYSE:CVNA - Free Report) by 5.9% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 33,899 shares of the company's stock after acquiring an additional 1,894 shares during the quarter. Resona Asset Management Co. Ltd.'s holdings in Carvana were worth $7,067,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in Carvana by 9.7% in the first quarter. Vanguard Group Inc. now owns 12,534,843 shares of the company's stock worth $2,620,785,000 after purchasing an additional 1,109,476 shares in the last quarter. Durable Capital Partners LP grew its holdings in Carvana by 6.3% in the fourth quarter. Durable Capital Partners LP now owns 2,168,232 shares of the company's stock worth $440,932,000 after purchasing an additional 129,246 shares during the period. Whale Rock Capital Management LLC raised its holdings in shares of Carvana by 29.8% during the fourth quarter. Whale Rock Capital Management LLC now owns 1,214,679 shares of the company's stock valued at $247,017,000 after purchasing an additional 278,760 shares during the period. BNP Paribas Financial Markets boosted its position in shares of Carvana by 89.8% during the 4th quarter. BNP Paribas Financial Markets now owns 1,018,321 shares of the company's stock worth $207,086,000 after purchasing an additional 481,912 shares in the last quarter. Finally, Palestra Capital Management LLC increased its holdings in shares of Carvana by 15.5% during the fourth quarter. Palestra Capital Management LLC now owns 807,016 shares of the company's stock valued at $164,115,000 after acquiring an additional 108,203 shares in the last quarter. Institutional investors and hedge funds own 56.71% of the company's stock.

Insider Buying and Selling at Carvana

In related news, CEO Ernest C. Garcia III sold 10,000 shares of Carvana stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $346.34, for a total transaction of $3,463,400.00. Following the completion of the sale, the chief executive officer owned 536,440 shares in the company, valued at $185,790,629.60. This trade represents a 1.83% 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 95,087 shares of the company's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $349.09, for a total transaction of $33,193,920.83. Following the completion of the transaction, the insider owned 34,442,317 shares in the company, valued at $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 have sold 3,036,140 shares of company stock valued at $1,056,693,071. Corporate insiders own 16.36% of the company's stock.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. JMP Securities upped their price target on Carvana from $440.00 to $460.00 and gave the stock a "market outperform" rating in a report on Thursday, July 31st. Needham & Company LLC raised their price objective on shares of Carvana from $340.00 to $500.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Gordon Haskett initiated coverage on Carvana in a research note on Monday, July 14th. They issued a "hold" rating and a $329.00 target price for the company. Wall Street Zen lowered Carvana from a "buy" rating to a "hold" rating in a report on Saturday. Finally, Stephens raised their target price on shares of Carvana from $300.00 to $375.00 and gave the company an "overweight" rating in a research note on Monday, July 7th. Twelve analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $383.47.

Carvana Stock Performance

Shares of NYSE CVNA traded down $10.5530 during midday trading on Tuesday, hitting $348.9570. 822,636 shares of the company's stock traded hands, compared to its average volume of 4,144,481. Carvana Co. has a 1 year low of $124.39 and a 1 year high of $413.33. The firm has a fifty day moving average of $338.38 and a 200 day moving average of $276.67. The stock has a market capitalization of $75.10 billion, a price-to-earnings ratio of 87.65, a price-to-earnings-growth ratio of 1.16 and a beta of 3.57. The company has a debt-to-equity ratio of 2.51, a quick ratio of 2.58 and a current ratio of 4.00.

Carvana (NYSE:CVNA - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported $1.28 EPS for the quarter, topping 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 return on equity of 40.57% and a net margin of 3.46%.The firm's revenue for the quarter was up 41.9% on a year-over-year basis. During the same period in the previous year, the business earned ($0.05) earnings per share. On average, analysts forecast that Carvana Co. will post 2.85 earnings per share for the current year.

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.