Royal London Asset Management Ltd. Grows Position in Carvana Co. $CVNA

Key Points

• Royal London Asset Management increased its Carvana stake by 399.1% in the second quarter, bringing its holdings to 295,849 shares valued at approximately $19.5 million. Institutional investors collectively own 56.71% of CVNA.
• Carvana insiders sold 302,147 shares worth about $20.4 million over the past three months, including significant sales by the CFO and a director under reported SEC filings.
• Carvana exceeded quarterly expectations with $0.42 EPS versus a $0.39 consensus and $7.38 billion in revenue, up 52.4% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $84.14.

Royal London Asset Management Ltd. increased its position in Carvana Co. (NYSE:CVNA - Free Report) by 399.1% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 295,849 shares of the company's stock after acquiring an additional 236,574 shares during the period. Royal London Asset Management Ltd.'s holdings in Carvana were worth $19,473,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. Ascentis Independent Advisors purchased a new stake in Carvana during the 1st quarter worth about $26,000. Farmers & Merchants Investments Inc. purchased a new position in Carvana in the 4th quarter valued at about $29,000. Annis Gardner Whiting Capital Advisors LLC boosted its stake in shares of Carvana by 152.6% during the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 96 shares of the company's stock worth $30,000 after purchasing an additional 58 shares during the last quarter. Transamerica Financial Advisors LLC boosted its stake in shares of Carvana by 558.0% during the 2nd quarter. Transamerica Financial Advisors LLC now owns 454 shares of the company's stock worth $30,000 after purchasing an additional 385 shares during the last quarter. Finally, Motiv8 Investments LLC purchased a new stake in shares of Carvana during the fourth quarter worth about $33,000. 56.71% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Carvana

In other news, CFO Mark W. Jenkins sold 63,750 shares of the company's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $64.50, for a total transaction of $4,111,875.00. Following the completion of the sale, the chief financial officer directly owned 1,156,534 shares in the company, valued at $74,596,443. This represents a 5.22% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ira J. Platt sold 15,000 shares of the stock in a transaction on Friday, August 14th. The stock was sold at an average price of $75.50, for a total value of $1,132,500.00. Following the completion of the transaction, the director directly owned 186,470 shares in the company, valued at $14,078,485. This trade represents a 7.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 302,147 shares of company stock worth $20,418,064. 15.19% of the stock is owned by corporate insiders.

Carvana Price Performance

CVNA opened at $74.24 on Monday. Carvana Co. has a 1 year low of $54.46 and a 1 year high of $97.38. The company's 50 day simple moving average is $68.10 and its 200 day simple moving average is $68.34. The stock has a market capitalization of $81.70 billion, a PE ratio of 41.06, a P/E/G ratio of 2.69 and a beta of 3.46. The company has a debt-to-equity ratio of 0.94, a quick ratio of 2.33 and a current ratio of 3.93.

Carvana (NYSE:CVNA - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $0.42 EPS for the quarter, topping the consensus estimate of $0.39 by $0.03. The firm had revenue of $7.38 billion during the quarter, compared to analyst estimates of $6.90 billion. Carvana had a net margin of 6.26% and a return on equity of 37.06%. Carvana's revenue for the quarter was up 52.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.51 earnings per share. As a group, sell-side analysts expect that Carvana Co. will post 1.68 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on CVNA shares. BNP Paribas Exane decreased their target price on shares of Carvana from $86.00 to $69.00 and set a "hold" rating on the stock in a research report on Thursday, July 30th. Zacks Research downgraded Carvana from a "strong-buy" rating to a "hold" rating in a report on Wednesday, July 15th. Robert W. Baird set a $72.00 price target on Carvana in a research note on Thursday, July 30th. Argus decreased their price objective on Carvana from $500.00 to $100.00 in a report on Monday, May 11th. Finally, Morgan Stanley set a $90.00 price objective on Carvana and gave the company an "overweight" rating in a research report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $84.14.

About Carvana

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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