Palestra Capital Management LLC Has $52.37 Million Stock Position in Carvana Co. $CVNA

Palestra Capital Management LLC increased its position in shares of Carvana Co. (NYSE:CVNA) by 99.9% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 795,635 shares of the company’s stock after purchasing an additional 397,628 shares during the quarter. Carvana accounts for approximately 1.8% of Palestra Capital Management LLC’s investment portfolio, making the stock its 18th largest position. Palestra Capital Management LLC’s holdings in Carvana were worth $52,369,000 at the end of the most recent reporting period.

A number of other large investors have also recently bought and sold shares of the company. Ascentis Independent Advisors bought a new stake in shares of Carvana during the 1st quarter worth approximately $26,000. Farmers & Merchants Investments Inc. bought a new position in Carvana in the fourth quarter valued at approximately $29,000. Annis Gardner Whiting Capital Advisors LLC raised its position in Carvana by 152.6% during the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 96 shares of the company’s stock valued at $30,000 after purchasing an additional 58 shares in the last quarter. Motiv8 Investments LLC acquired a new position in Carvana during the fourth quarter valued at approximately $33,000. Finally, GoalVest Advisory LLC lifted its stake in Carvana by 400.0% during the second quarter. GoalVest Advisory LLC now owns 500 shares of the company’s stock worth $33,000 after purchasing an additional 400 shares during the last quarter. 56.71% of the stock is currently owned by institutional investors and hedge funds.

Carvana Stock Performance

Shares of Carvana stock opened at $73.70 on Thursday. The stock has a market cap of $81.10 billion, a price-to-earnings ratio of 40.76, a P/E/G ratio of 2.75 and a beta of 3.46. Carvana Co. has a twelve month low of $54.46 and a twelve month high of $97.38. The company’s fifty day moving average is $67.80 and its 200 day moving average is $68.40. The company has a quick ratio of 2.33, a current ratio of 3.93 and a debt-to-equity ratio of 0.94.

Carvana (NYSE:CVNA) last announced its earnings results on Wednesday, July 29th. The company reported $0.42 EPS for the quarter, topping the consensus estimate of $0.39 by $0.03. The firm had revenue of $7.38 billion for the quarter, compared to the consensus estimate of $6.90 billion. Carvana had a return on equity of 37.06% and a net margin of 6.26%.The business’s quarterly revenue was up 52.4% compared to the same quarter last year. During the same period in the previous year, the business earned $1.51 EPS. Sell-side analysts forecast that Carvana Co. will post 1.68 EPS for the current year.

Insiders Place Their Bets

In related news, Director J Danforth Quayle sold 14,525 shares of the company’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $75.00, for a total value of $1,089,375.00. Following the sale, the director owned 214,960 shares in the company, valued at $16,122,000. This represents a 6.33% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Stephen R. Palmer sold 5,000 shares of Carvana stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $64.49, for a total transaction of $322,450.00. Following the transaction, the vice president directly owned 136,909 shares in the company, valued at $8,829,261.41. This represents a 3.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 420,897 shares of company stock valued at $28,777,664. 15.19% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on CVNA shares. Stephens lifted their price target on Carvana from $86.00 to $97.00 in a research note on Thursday, April 30th. DA Davidson set a $67.00 price objective on Carvana in a research note on Thursday, July 30th. Robert W. Baird set a $72.00 target price on Carvana in a research report on Thursday, July 30th. Morgan Stanley set a $90.00 target price on Carvana and gave the stock an “overweight” rating in a research note on Thursday, July 30th. Finally, Needham & Company LLC restated a “buy” rating and issued a $120.00 price target on shares of Carvana in a research note on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $84.14.

About Carvana

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.