Senator Investment Group LP Has $109.70 Million Holdings in Carvana Co. $CVNA

Key Points

• Senator Investment Group trimmed its Carvana stake by 10.7% in the fourth quarter, but still held 259,932 shares valued at about $109.7 million, making Carvana its fourth-largest position.
• Carvana reported strong quarterly results, with EPS of $1.69 versus the $0.32 consensus estimate and revenue of $6.43 billion, both beating expectations.
• Despite insider selling and mixed ownership moves, analysts remain broadly positive on the stock, with a Moderate Buy consensus and an average price target of $93.14.

Senator Investment Group LP lowered its position in shares of Carvana Co. (NYSE:CVNA - Free Report) by 10.7% in the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 259,932 shares of the company's stock after selling 30,998 shares during the quarter. Carvana accounts for approximately 4.4% of Senator Investment Group LP's investment portfolio, making the stock its 4th largest position. Senator Investment Group LP owned approximately 0.12% of Carvana worth $109,697,000 at the end of the most recent quarter.

Several other large investors have also bought and sold shares of the company. Royal Bank of Canada lifted its holdings in shares of Carvana by 40.8% during the first quarter. Royal Bank of Canada now owns 29,867 shares of the company's stock valued at $6,243,000 after purchasing an additional 8,654 shares during the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Carvana by 251.4% during the first quarter. Geneos Wealth Management Inc. now owns 253 shares of the company's stock valued at $53,000 after purchasing an additional 181 shares during the last quarter. Cerity Partners LLC lifted its holdings in shares of Carvana by 28.8% during the second quarter. Cerity Partners LLC now owns 5,481 shares of the company's stock valued at $1,847,000 after purchasing an additional 1,226 shares during the last quarter. AXA S.A. lifted its holdings in shares of Carvana by 340.7% during the second quarter. AXA S.A. now owns 4,253 shares of the company's stock valued at $1,433,000 after purchasing an additional 3,288 shares during the last quarter. Finally, NewEdge Advisors LLC lifted its stake in Carvana by 9.1% in the 2nd quarter. NewEdge Advisors LLC now owns 9,893 shares of the company's stock worth $3,334,000 after acquiring an additional 825 shares in the last quarter. Institutional investors own 56.71% of the company's stock.

Carvana Price Performance

Shares of CVNA stock opened at $68.81 on Tuesday. The stock has a 50 day moving average of $71.33 and a two-hundred day moving average of $75.25. 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 12 month low of $54.46 and a 12 month high of $97.38. The company has a market capitalization of $75.48 billion, a P/E ratio of 41.86, a P/E/G ratio of 10.82 and a beta of 3.45.

Carvana (NYSE:CVNA - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The company reported $1.69 EPS for the quarter, topping analysts' consensus estimates of $0.32 by $1.37. The company had revenue of $6.43 billion during the quarter, compared to the consensus estimate of $6.12 billion. Carvana had a return on equity of 41.46% and a net margin of 6.40%. As a group, equities analysts expect that Carvana Co. will post 1.58 EPS for the current year.

Insider Buying and Selling

In related news, Director J Danforth Quayle sold 14,525 shares of the firm's stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $70.00, for a total transaction of $1,016,750.00. Following the completion of the transaction, the director owned 214,960 shares in the company, valued at $15,047,200. This trade represents a 6.33% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Benjamin E. Huston sold 50,000 shares of Carvana stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $61.97, for a total value of $3,098,600.00. Following the completion of the transaction, the chief operating officer owned 464,620 shares of the company's stock, valued at approximately $28,793,430.64. The trade was a 9.72% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 400,812 shares of company stock worth $28,039,446 over the last 90 days. Corporate insiders own 15.19% of the company's stock.

Analyst Ratings Changes

CVNA has been the topic of several research reports. Morgan Stanley upped their target price on Carvana from $90.00 to $102.00 and gave the stock an "overweight" rating in a research report on Thursday, April 30th. DA Davidson raised their target price on Carvana from $64.00 to $67.00 and gave the company a "neutral" rating in a report on Friday, May 1st. Stephens raised their target price on Carvana from $86.00 to $97.00 in a report on Thursday, April 30th. Barclays set a $93.00 target price on Carvana and gave the company an "overweight" rating in a report on Thursday, May 14th. Finally, Evercore raised their target price on Carvana from $78.00 to $80.00 in a report on Tuesday, April 28th. Two analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $93.14.

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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