Castle Hook Partners LP Sells 657,176 Shares of Carvana Co. $CVNA

Castle Hook Partners LP lowered its stake in shares of Carvana Co. (NYSE:CVNA) by 48.6% during the fourth quarter, Holdings Channel reports. The fund owned 695,090 shares of the company’s stock after selling 657,176 shares during the quarter. Carvana comprises 1.2% of Castle Hook Partners LP’s portfolio, making the stock its 7th biggest holding. Castle Hook Partners LP’s holdings in Carvana were worth $293,342,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in the stock. First Horizon Corp boosted its stake in shares of Carvana by 6.4% during the fourth quarter. First Horizon Corp now owns 418 shares of the company’s stock valued at $176,000 after acquiring an additional 25 shares during the last quarter. Finivi Inc. boosted its stake in shares of Carvana by 4.6% during the fourth quarter. Finivi Inc. now owns 698 shares of the company’s stock valued at $295,000 after acquiring an additional 31 shares during the last quarter. HB Wealth Management LLC boosted its stake in shares of Carvana by 1.0% during the fourth quarter. HB Wealth Management LLC now owns 3,190 shares of the company’s stock valued at $1,346,000 after acquiring an additional 31 shares during the last quarter. Gilder Gagnon Howe & Co. LLC boosted its stake in shares of Carvana by 1.7% during the second quarter. Gilder Gagnon Howe & Co. LLC now owns 1,846 shares of the company’s stock valued at $622,000 after acquiring an additional 31 shares during the last quarter. Finally, Insigneo Advisory Services LLC boosted its stake in shares of Carvana by 4.8% during the fourth quarter. Insigneo Advisory Services LLC now owns 696 shares of the company’s stock valued at $294,000 after acquiring an additional 32 shares during the last quarter. Institutional investors and hedge funds own 56.71% of the company’s stock.

Analysts Set New Price Targets

A number of research firms recently commented on CVNA. DA Davidson increased their price objective on Carvana from $64.00 to $67.00 and gave the company a “neutral” rating in a research note on Friday, May 1st. Needham & Company LLC reissued a “buy” rating and issued a $120.00 price target on shares of Carvana in a research note on Friday, June 5th. Wells Fargo & Company raised their price target on Carvana from $85.00 to $95.00 and gave the stock an “overweight” rating in a research note on Thursday, April 30th. Argus decreased their price target on Carvana from $500.00 to $100.00 in a research note on Monday, May 11th. Finally, Citizens Jmp raised their price target on Carvana from $92.00 to $103.00 and gave the stock a “market outperform” rating in a research note on Friday, May 1st. Two analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, Carvana presently has an average rating of “Moderate Buy” and a consensus price target of $93.14.

Insiders Place Their Bets

In other news, Director J Danforth Quayle sold 14,525 shares of Carvana stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $70.00, for a total value of $1,016,750.00. Following the transaction, the director directly owned 214,960 shares of the company’s stock, valued at $15,047,200. The trade was a 6.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at 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 Carvana 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 completion of the transaction, the chief financial officer directly owned 985,445 shares in the company, valued at $61,166,571.15. This represents a 6.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 415,812 shares of company stock worth $29,056,896. 15.19% of the stock is owned by insiders.

Carvana Stock Down 10.3%

Shares of NYSE:CVNA opened at $62.82 on Thursday. The stock’s 50-day moving average price is $71.47 and its two-hundred day moving average price is $75.19. 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 cap of $68.91 billion, a price-to-earnings ratio of 38.21, a PEG ratio of 11.82 and a beta of 3.45.

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

Trending Headlines about 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

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.