Hollencrest Capital Management Makes New Investment in Carvana Co. $CVNA

Hollencrest Capital Management purchased a new position in shares of Carvana Co. (NYSE:CVNA) in the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 1,838 shares of the company’s stock, valued at approximately $693,000.

Several other hedge funds and other institutional investors have also made changes to their positions in CVNA. Sands Capital Management LLC lifted its position in Carvana by 1,374.3% in the second quarter. Sands Capital Management LLC now owns 901,227 shares of the company’s stock valued at $303,677,000 after purchasing an additional 840,096 shares during the period. Norges Bank purchased a new position in shares of Carvana during the 2nd quarter worth approximately $259,468,000. Massachusetts Financial Services Co. MA acquired a new stake in shares of Carvana in the 2nd quarter valued at approximately $193,091,000. Arrowstreet Capital Limited Partnership purchased a new stake in shares of Carvana in the second quarter valued at approximately $183,102,000. Finally, Invesco Ltd. boosted its stake in shares of Carvana by 231.8% in the second quarter. Invesco Ltd. now owns 734,436 shares of the company’s stock valued at $247,476,000 after buying an additional 513,092 shares in the last quarter. Hedge funds and other institutional investors own 56.71% of the company’s stock.

Insider Activity

In other news, VP Stephen R. Palmer sold 1,000 shares of Carvana stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $419.48, for a total transaction of $419,480.00. Following the completion of the sale, the vice president directly owned 38,744 shares in the company, valued at $16,252,333.12. The trade was a 2.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Daniel J. Gill sold 40,000 shares of the business’s stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $475.24, for a total transaction of $19,009,600.00. Following the completion of the transaction, the insider directly owned 191,106 shares of the company’s stock, valued at approximately $90,821,215.44. This represents a 17.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 467,626 shares of company stock worth $192,090,109 in the last quarter. Corporate insiders own 16.36% of the company’s stock.

Analyst Ratings Changes

CVNA has been the subject of a number of recent analyst reports. Wells Fargo & Company raised their target price on Carvana from $500.00 to $525.00 and gave the company an “overweight” rating in a report on Tuesday. UBS Group raised their price objective on shares of Carvana from $450.00 to $545.00 and gave the company a “buy” rating in a research note on Wednesday, January 14th. Royal Bank Of Canada reissued an “outperform” rating and set a $460.00 price objective on shares of Carvana in a report on Thursday, October 30th. DA Davidson set a $360.00 target price on shares of Carvana in a report on Thursday, October 30th. Finally, Jefferies Financial Group lifted their price target on shares of Carvana from $475.00 to $550.00 and gave the company a “buy” rating in a research report on Thursday, December 11th. Nineteen investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat, Carvana presently has a consensus rating of “Moderate Buy” and a consensus price target of $474.27.

Trending Headlines about Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: JPMorgan boosted its price target to $510 and kept an “overweight” rating, signaling institutional conviction in Carvana’s growth outlook despite the headlines. Read More.
• Positive Sentiment: Evercore ISI nudged its target higher to $430 (small upside vs. price at the time), reflecting continued analyst support from some sell?side firms. Read More.
• Positive Sentiment: Earlier analyst commentary pointed to an expanding online buyer base for Carvana, which had helped push the stock higher before the short?seller report. Read More.
• Neutral Sentiment: Media and market write?ups (Investopedia, Globe and Mail) summarize the runup in the stock and the debate over whether fundamentals justify the rally; these pieces contextualize the moves but don’t change the underlying allegations. Read More.
• Negative Sentiment: Gotham City Research publicly accused Carvana of overstating 2023–24 earnings by roughly $1B and of heavy dependence on related parties linked to the founder’s family; that report is the proximate cause of heavy selling pressure. Read More. Read More.
• Negative Sentiment: Several securities?litigation firms (Moore Law PLLC, Bleichmar Fonti & Auld, Block & Leviton) have launched investigations or are soliciting affected shareholders — increasing legal and reputational risk and making further volatility likely. Read More. Read More. Read More.

Carvana Price Performance

CVNA stock opened at $407.95 on Thursday. The stock’s 50 day moving average price is $427.84 and its 200 day moving average price is $378.26. The firm has a market cap of $88.75 billion, a P/E ratio of 93.14, a PEG ratio of 1.15 and a beta of 3.54. The company has a debt-to-equity ratio of 1.63, a quick ratio of 2.55 and a current ratio of 4.05. Carvana Co. has a 1 year low of $148.25 and a 1 year high of $486.89.

Carvana (NYSE:CVNA) last released its quarterly earnings results on Wednesday, October 29th. The company reported $1.03 earnings per share for the quarter, missing the consensus estimate of $1.29 by ($0.26). Carvana had a return on equity of 30.62% and a net margin of 3.44%.The company had revenue of $5.65 billion for the quarter, compared to analysts’ expectations of $5.04 billion. During the same period in the previous year, the business posted $0.64 EPS. The business’s quarterly revenue was up 54.5% on a year-over-year basis. On average, sell-side analysts expect that Carvana Co. will post 2.85 earnings per share for the current fiscal 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.