SEB Asset Management AB Invests $8.25 Million in Carvana Co. $CVNA

Key Points

• SEB Asset Management AB opened a new position in Carvana during the first quarter, buying 26,229 shares worth about $8.25 million.
• Several other institutions also adjusted their Carvana holdings, and 56.71% of the stock is now owned by hedge funds and other institutional investors.
• Carvana posted a strong quarter with EPS of $1.69 versus the $0.32 estimate and revenue of $6.43 billion above expectations, while analysts currently hold a Moderate Buy consensus with a $92.53 target price.

SEB Asset Management AB purchased a new position in shares of Carvana Co. (NYSE:CVNA - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 26,229 shares of the company's stock, valued at approximately $8,246,000.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in CVNA. Royal Bank of Canada increased its stake in Carvana by 40.8% in the 1st quarter. Royal Bank of Canada now owns 29,867 shares of the company's stock valued at $6,243,000 after buying an additional 8,654 shares during the period. Geneos Wealth Management Inc. lifted its position in Carvana by 251.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 253 shares of the company's stock worth $53,000 after buying an additional 181 shares in the last quarter. Cerity Partners LLC boosted its stake in shares of Carvana by 28.8% during the 2nd quarter. Cerity Partners LLC now owns 5,481 shares of the company's stock valued at $1,847,000 after buying an additional 1,226 shares during the period. AXA S.A. boosted its stake in shares of Carvana by 340.7% during the 2nd quarter. AXA S.A. now owns 4,253 shares of the company's stock valued at $1,433,000 after buying an additional 3,288 shares during the period. Finally, NewEdge Advisors LLC grew its holdings in shares of Carvana by 9.1% during the 2nd quarter. NewEdge Advisors LLC now owns 9,893 shares of the company's stock valued at $3,334,000 after acquiring an additional 825 shares in the last quarter. 56.71% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other news, VP Stephen R. Palmer sold 5,000 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $68.53, for a total transaction of $342,650.00. Following the transaction, the vice president owned 144,934 shares of the company's stock, valued at approximately $9,932,327.02. This represents a 3.33% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark W. Jenkins sold 63,750 shares of the firm's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $68.34, for a total value of $4,356,675.00. Following the completion of the transaction, the chief financial officer directly owned 1,029,580 shares in the company, valued at $70,361,497.20. The trade was a 5.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 396,962 shares of company stock valued at $28,525,088. 15.19% of the stock is owned by corporate insiders.

Carvana Stock Up 2.4%

Carvana stock opened at $65.65 on Wednesday. The company has a market capitalization of $72.01 billion, a P/E ratio of 39.93, a P/E/G ratio of 10.45 and a beta of 3.46. The firm's fifty day simple moving average is $67.45 and its 200-day simple moving average is $71.99. 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 1-year low of $54.46 and a 1-year high of $97.38.

Carvana (NYSE:CVNA - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The company reported $1.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.32 by $1.37. The firm had revenue of $6.43 billion during the quarter, compared to analysts' expectations of $6.12 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%. Sell-side analysts forecast that Carvana Co. will post 1.64 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on CVNA. Robert W. Baird set a $88.00 price target on shares of Carvana in a research note on Friday, May 15th. JPMorgan Chase & Co. boosted their target price on Carvana from $91.00 to $93.00 and gave the company an "overweight" rating in a research note on Thursday, April 30th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $107.40 target price on shares of Carvana in a research report on Thursday, April 30th. Morgan Stanley reaffirmed an "overweight" rating and set a $102.00 price target on shares of Carvana in a research note on Monday. Finally, Zacks Research lowered Carvana from a "strong-buy" rating to a "hold" rating in a report on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $92.53.

Carvana 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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