Hsbc Holdings PLC Boosts Position in Carvana Co. $CVNA

Hsbc Holdings PLC raised its position in Carvana Co. (NYSE:CVNA) by 239.6% during the 4th quarter, according to its most recent disclosure with the SEC. The fund owned 221,727 shares of the company’s stock after purchasing an additional 156,430 shares during the period. Hsbc Holdings PLC owned about 0.10% of Carvana worth $93,748,000 at the end of the most recent reporting period.

Other hedge funds have also made changes to their positions in the company. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in shares of Carvana in the 4th quarter worth about $29,000. Farmers & Merchants Investments Inc. acquired a new stake in Carvana in the 4th quarter valued at about $29,000. Motiv8 Investments LLC purchased a new position in Carvana during the 4th quarter valued at about $33,000. Salomon & Ludwin LLC increased its holdings in Carvana by 112.5% during the 4th quarter. Salomon & Ludwin LLC now owns 85 shares of the company’s stock valued at $37,000 after acquiring an additional 45 shares in the last quarter. Finally, DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main acquired a new position in Carvana during the second quarter worth about $38,000. Hedge funds and other institutional investors own 56.71% of the company’s stock.

Carvana News Summary

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Commentary highlighted Carvana’s increased advertising spend as a key growth engine, with the company trying to build awareness and trust in the online used-car market. That could support longer-term revenue growth if marketing translates into more customers. Why Does Carvana See Advertising as a Crucial Growth Engine?
• Positive Sentiment: Analyst and investor commentary pointed to Carvana’s efforts to expand its business model, including testing a new-vehicle retail concept in Dallas that keeps purchases online. That suggests management is still looking for ways to widen its addressable market. Is Carvana Co. (CVNA) Among the Best Fundamentally Strong Stocks to Buy for Long Term?
• Neutral Sentiment: Several articles focused on whether Carvana’s sharp year-to-date decline could set up a rebound. This reflects a valuation and sentiment debate rather than a clear new catalyst. Down 19% YTD, is Carvana (CVNA) due for a bounce back?
• Neutral Sentiment: Recurve Capital said Carvana was a major drag on its portfolio, noting the stock fell in June and remained down sharply year to date. That underscores weak recent momentum, but it is more of a performance recap than a new business development. Recurve Capital’s Analysis on Carvana (CVNA)
• Negative Sentiment: Multiple insiders sold shares, including the VP, COO, and CFO, with the largest sale coming from the COO. Even though the trades were made under pre-arranged 10b5-1 plans, insider selling can still weigh on sentiment. Insider Selling: Carvana (NYSE:CVNA) VP Sells $342,650.00 in Stock
• Negative Sentiment: Coverage also noted that Carvana is still trading below recent moving averages and remains volatile, which may reinforce caution among traders despite its strong recent earnings beat. Carvana stock and company overview

Insider Activity

In other Carvana news, Director J Danforth Quayle sold 14,525 shares of the 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 transaction, the director owned 214,960 shares of the company’s stock, valued at $15,047,200. This represents a 6.33% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available 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 stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $68.34, for a total value of $4,356,675.00. Following the transaction, the chief financial officer directly owned 1,029,580 shares in the company, valued at approximately $70,361,497.20. This represents a 5.83% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 415,812 shares of company stock valued at $29,810,658 in the last 90 days. Insiders own 15.19% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have issued reports on CVNA. DA Davidson upped their price target on shares of Carvana from $64.00 to $67.00 and gave the company a “neutral” rating in a report on Friday, May 1st. Citizens Jmp raised their price objective on shares of Carvana from $92.00 to $103.00 and gave the stock a “market outperform” rating in a research note on Friday, May 1st. Weiss Ratings restated a “hold (c+)” rating on shares of Carvana in a research report on Thursday, June 18th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $107.40 target price on shares of Carvana in a research note on Thursday, April 30th. Finally, JPMorgan Chase & Co. increased their target price on Carvana from $91.00 to $93.00 and gave the company an “overweight” rating in a report on Thursday, April 30th. Two analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $93.14.

Carvana Price Performance

NYSE:CVNA opened at $68.71 on Friday. Carvana Co. has a 12-month low of $54.46 and a 12-month high of $97.38. The firm has a market cap of $75.36 billion, a price-to-earnings ratio of 41.80, a price-to-earnings-growth ratio of 11.58 and a beta of 3.46. The company’s 50-day moving average is $70.21 and its two-hundred day moving average is $73.77. 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 (NYSE:CVNA) last posted its quarterly earnings data on Wednesday, April 29th. The company reported $1.69 earnings per share for the quarter, beating analysts’ consensus estimates of $0.32 by $1.37. The business 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%. Research analysts expect that Carvana Co. will post 1.58 EPS for the current year.

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.