Spruce House Investment Management LLC Sells 79,000 Shares of Carvana Co. (NYSE:CVNA)

Spruce House Investment Management LLC lowered its stake in shares of Carvana Co. (NYSE:CVNA) by 1.6% during the fourth quarter, Holdings Channel reports. The fund owned 4,921,000 shares of the company’s stock after selling 79,000 shares during the quarter. Carvana comprises 36.8% of Spruce House Investment Management LLC’s portfolio, making the stock its 2nd biggest holding. Spruce House Investment Management LLC’s holdings in Carvana were worth $1,000,735,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in the stock. Vanguard Group Inc. boosted its stake in shares of Carvana by 5.6% during the fourth quarter. Vanguard Group Inc. now owns 11,425,367 shares of the company’s stock valued at $2,323,463,000 after acquiring an additional 610,234 shares during the last quarter. Lingotto Investment Management LLP increased its position in Carvana by 1.5% during the 4th quarter. Lingotto Investment Management LLP now owns 3,987,150 shares of the company’s stock worth $810,827,000 after purchasing an additional 57,215 shares in the last quarter. Durable Capital Partners LP grew its position in Carvana by 6.3% in the fourth quarter. Durable Capital Partners LP now owns 2,168,232 shares of the company’s stock valued at $440,932,000 after acquiring an additional 129,246 shares in the last quarter. Geode Capital Management LLC grew its position in Carvana by 4.2% in the fourth quarter. Geode Capital Management LLC now owns 1,878,796 shares of the company’s stock valued at $381,592,000 after acquiring an additional 75,250 shares in the last quarter. Finally, BNP Paribas Financial Markets grew its position in Carvana by 89.8% in the fourth quarter. BNP Paribas Financial Markets now owns 1,018,321 shares of the company’s stock valued at $207,086,000 after acquiring an additional 481,912 shares in the last quarter. Institutional investors and hedge funds own 56.71% of the company’s stock.

Carvana Stock Performance

CVNA stock opened at $297.93 on Friday. The company has a debt-to-equity ratio of 3.82, a quick ratio of 2.12 and a current ratio of 3.64. The stock has a market capitalization of $63.51 billion, a price-to-earnings ratio of 189.76 and a beta of 3.61. Carvana Co. has a 1 year low of $97.55 and a 1 year high of $311.88. The stock’s fifty day moving average is $218.17 and its two-hundred day moving average is $229.55.

Carvana (NYSE:CVNA) last issued its quarterly earnings results on Wednesday, May 7th. The company reported $1.51 EPS for the quarter, beating analysts’ consensus estimates of $0.75 by $0.76. The company had revenue of $4.23 billion for the quarter, compared to analyst estimates of $3.94 billion. Carvana had a return on equity of 36.59% and a net margin of 1.54%. The company’s quarterly revenue was up 38.3% compared to the same quarter last year. During the same period last year, the company earned $0.23 earnings per share. On average, research analysts predict that Carvana Co. will post 2.85 EPS for the current year.

Insider Activity

In other news, CFO Mark W. Jenkins sold 28,422 shares of the firm’s stock in a transaction on Tuesday, February 18th. The stock was sold at an average price of $288.85, for a total transaction of $8,209,694.70. Following the transaction, the chief financial officer now directly owns 219,962 shares of the company’s stock, valued at approximately $63,536,023.70. This trade represents a 11.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Paul W. Breaux sold 30,000 shares of the firm’s stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of $298.00, for a total value of $8,940,000.00. Following the transaction, the insider now directly owns 149,114 shares in the company, valued at $44,435,972. This trade represents a 16.75% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 462,967 shares of company stock valued at $106,728,267. Company insiders own 16.36% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have issued reports on CVNA shares. DA Davidson increased their price objective on shares of Carvana from $220.00 to $260.00 and gave the company a “neutral” rating in a research report on Thursday, February 20th. JMP Securities reduced their target price on Carvana from $340.00 to $275.00 and set a “market outperform” rating for the company in a research note on Wednesday, April 9th. Stephens reiterated an “overweight” rating and set a $300.00 target price on shares of Carvana in a research note on Monday, March 3rd. Wells Fargo & Company increased their target price on Carvana from $290.00 to $310.00 and gave the company an “overweight” rating in a research note on Thursday, May 8th. Finally, JPMorgan Chase & Co. reduced their target price on Carvana from $365.00 to $325.00 and set an “overweight” rating for the company in a research note on Thursday, March 27th. Six investment analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. Based on data from MarketBeat.com, Carvana has an average rating of “Moderate Buy” and an average price target of $269.18.

Carvana Profile

Carvana Co, together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices.