Electron Capital Partners LLC Invests $38.35 Million in Carvana Co. $CVNA

Electron Capital Partners LLC acquired a new position in Carvana Co. (NYSE:CVNA) in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 90,864 shares of the company’s stock, valued at approximately $38,346,000. Carvana comprises 1.8% of Electron Capital Partners LLC’s portfolio, making the stock its 22nd biggest position.

A number of other hedge funds have also recently made changes to their positions in CVNA. Gavilan Investment Partners LLC bought a new stake in Carvana during the 3rd quarter valued at $26,030,000. Sands Capital Management LLC raised its holdings in Carvana by 44.4% during the 4th quarter. Sands Capital Management LLC now owns 2,442,534 shares of the company’s stock valued at $1,030,798,000 after buying an additional 751,019 shares during the last quarter. Intech Investment Management LLC raised its holdings in Carvana by 301.4% during the 3rd quarter. Intech Investment Management LLC now owns 7,230 shares of the company’s stock valued at $2,727,000 after buying an additional 5,429 shares during the last quarter. TD Asset Management Inc raised its holdings in Carvana by 5.2% during the 3rd quarter. TD Asset Management Inc now owns 133,811 shares of the company’s stock valued at $50,479,000 after buying an additional 6,643 shares during the last quarter. Finally, Picton Mahoney Asset Management raised its holdings in Carvana by 581.4% during the 3rd quarter. Picton Mahoney Asset Management now owns 16,491 shares of the company’s stock valued at $6,220,000 after buying an additional 14,071 shares during the last quarter. 56.71% of the stock is currently owned by institutional investors.

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

Analysts Set New Price Targets

A number of equities research analysts recently commented on the stock. Robert W. Baird set a $88.00 price target on shares of Carvana in a report on Friday, May 15th. Weiss Ratings lowered shares of Carvana from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, March 24th. BNP Paribas Exane upped their price objective on shares of Carvana from $77.60 to $85.80 in a report on Thursday, April 30th. Gordon Haskett upped their price objective on shares of Carvana from $67.00 to $85.00 and gave the stock a “hold” rating in a report on Thursday, April 30th. Finally, Wedbush decreased their price objective on shares of Carvana from $100.00 to $85.00 and set an “outperform” rating for the company in a report on Thursday, February 19th. 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.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $93.14.

Carvana Stock Down 10.3%

Shares of NYSE CVNA opened at $62.82 on Thursday. 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 firm has a market capitalization of $68.91 billion, a PE ratio of 38.21, a price-to-earnings-growth ratio of 11.82 and a beta of 3.45. The firm has a fifty day simple moving average of $71.47 and a two-hundred day simple moving average of $75.19.

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

Insiders Place Their Bets

In other news, CFO Mark W. Jenkins sold 63,750 shares of the company’s stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $62.07, for a total value of $3,956,962.50. Following the sale, the chief financial officer directly owned 985,445 shares of the company’s stock, valued at $61,166,571.15. This represents a 6.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Benjamin E. Huston sold 50,000 shares of the company’s stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $61.97, for a total transaction of $3,098,600.00. Following the completion of the sale, the chief operating officer directly owned 464,620 shares in the company, valued at $28,793,430.64. This represents a 9.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 415,812 shares of company stock worth $29,056,896. Company insiders own 15.19% of the company’s stock.

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.