3G Capital Partners LP Boosts Stock Holdings in Carvana Co. $CVNA

3G Capital Partners LP grew its position in shares of Carvana Co. (NYSE:CVNA) by 25.0% during the 4th quarter, Holdings Channel.com reports. The institutional investor owned 150,000 shares of the company’s stock after buying an additional 30,000 shares during the quarter. Carvana accounts for 14.9% of 3G Capital Partners LP’s holdings, making the stock its 2nd biggest position. 3G Capital Partners LP’s holdings in Carvana were worth $63,303,000 at the end of the most recent reporting period.

Several other hedge funds have also recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in shares of Carvana by 24.7% in the 4th quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company’s stock worth $7,082,804,000 after purchasing an additional 3,328,115 shares during the period. State Street Corp grew its stake in Carvana by 93.7% in the 4th quarter. State Street Corp now owns 5,714,779 shares of the company’s stock valued at $2,411,751,000 after buying an additional 2,764,759 shares in the last quarter. Capital Research Global Investors grew its stake in Carvana by 42.9% in the 4th quarter. Capital Research Global Investors now owns 5,700,953 shares of the company’s stock valued at $2,405,959,000 after buying an additional 1,711,144 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in Carvana by 8.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company’s stock valued at $7,481,081,000 after buying an additional 1,407,762 shares in the last quarter. Finally, Geode Capital Management LLC grew its stake in Carvana by 55.4% in the 4th quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company’s stock valued at $1,632,763,000 after buying an additional 1,382,852 shares in the last quarter. Institutional investors own 56.71% of the company’s stock.

Insider Activity

In related news, Director Ira J. Platt sold 15,000 shares of the company’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $67.83, for a total value of $1,017,450.00. Following the completion of the transaction, the director directly owned 186,470 shares in the company, valued at approximately $12,648,260.10. The trade was a 7.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director J Danforth Quayle sold 14,525 shares of the company’s stock in a transaction 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 of the company’s stock, valued at $15,047,200. This trade represents a 6.33% 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 three months, insiders sold 415,812 shares of company stock worth $29,056,896. Company insiders own 15.19% of the company’s stock.

Key Stories Impacting Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana is expanding into new vehicle sales, with seven new-vehicle franchises already acquired; investors may view this as a meaningful growth opportunity that broadens the company’s addressable market. Carvana is expanding into new vehicles. The implications could reshape the U.S. automotive retail market
• Positive Sentiment: Analyst commentary remains constructive, with price targets implying notable upside and recent estimate revisions suggesting Wall Street still sees earnings growth potential for CVNA. Can Carvana (CVNA) Climb 37.01% to Reach the Level Wall Street Analysts Expect?
• Positive Sentiment: Several bullish articles argue Carvana’s turnaround is still intact, citing strong revenue growth, expanding margins, and operational efficiencies that could support further upside. Carvana: 40% Growth, Expanding Margins, And More Upside Ahead
• Neutral Sentiment: A director sold 15,000 shares, but the transaction was relatively modest versus the insider’s remaining stake and does not clearly indicate a major change in fundamentals. SEC Form 4 filing for Ira J. Platt
• Negative Sentiment: CarMax’s earnings report and commentary on continued low margins are weighing on sentiment for Carvana, since investors are extrapolating sector-wide pressure onto CVNA. Carvana Stock Falls As CarMax Warns Of Persistent Low Margins
• Negative Sentiment: Some commentary warns that the used-car market is softening and that credit-related risks could hurt margins and financing performance, which is fueling selling pressure in CVNA. CarMax Drops 7% Despite Earnings Beat, Carvana Tumbles 8% on Used-Car Margin, Credit Fears
• Negative Sentiment: Recent articles have also taken a skeptical view of Carvana’s turnaround story, arguing there may be hidden risks behind the bullish narrative. Carvana: The Turnaround Story Has A Hidden Trap

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Evercore lifted their price objective on shares of Carvana from $78.00 to $80.00 in a research note on Tuesday, April 28th. JPMorgan Chase & Co. lifted their price objective on shares of Carvana from $91.00 to $93.00 and gave the company an “overweight” rating in a research note on Thursday, April 30th. Morgan Stanley lifted their price objective on shares of Carvana from $90.00 to $102.00 and gave the company an “overweight” rating in a research note on Thursday, April 30th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $107.40 price objective on shares of Carvana in a research note on Thursday, April 30th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $120.00 price objective on shares of Carvana in a research note on Friday, June 5th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, Carvana currently has a consensus rating of “Moderate Buy” and an average target price of $93.14.

Carvana Stock Down 10.3%

CVNA opened at $62.82 on Thursday. The company has a fifty day moving average price of $71.47 and a 200-day moving average price of $75.19. The firm has a market capitalization of $68.91 billion, a P/E ratio of 38.21, a price-to-earnings-growth ratio of 11.82 and a beta of 3.45. The company has a debt-to-equity ratio of 1.05, a current ratio of 4.09 and a quick ratio of 2.57. Carvana Co. has a one year low of $54.46 and a one year high of $97.38.

Carvana (NYSE:CVNA) last released its quarterly earnings results on Wednesday, April 29th. The company reported $1.69 EPS for the quarter, beating analysts’ consensus estimates of $0.32 by $1.37. The firm had revenue of $6.43 billion during the quarter, compared to analyst estimates of $6.12 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%. Equities research analysts expect that Carvana Co. will post 1.58 earnings per share for the current fiscal year.

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.