Hollencrest Capital Management Buys New Shares in Carvana Co. $CVNA

Hollencrest Capital Management purchased a new position in Carvana Co. (NYSE:CVNA) during the third quarter, HoldingsChannel reports. The institutional investor purchased 1,838 shares of the company’s stock, valued at approximately $693,000.

A number of other institutional investors and hedge funds also recently modified their holdings of the stock. Hilltop National Bank acquired a new stake in shares of Carvana in the second quarter worth approximately $25,000. ORG Partners LLC raised its stake in Carvana by 8,700.0% during the third quarter. ORG Partners LLC now owns 88 shares of the company’s stock worth $33,000 after purchasing an additional 87 shares during the period. Steigerwald Gordon & Koch Inc. acquired a new position in shares of Carvana in the 3rd quarter valued at $38,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main purchased a new stake in shares of Carvana during the 2nd quarter valued at $38,000. Finally, LRI Investments LLC acquired a new stake in shares of Carvana during the 2nd quarter worth $42,000. Institutional investors and hedge funds own 56.71% of the company’s stock.

Carvana Trading Down 14.6%

CVNA opened at $407.95 on Thursday. The firm’s 50 day moving average is $427.84 and its 200-day moving average is $378.26. Carvana Co. has a 52-week low of $148.25 and a 52-week high of $486.89. The company has a quick ratio of 2.55, a current ratio of 4.05 and a debt-to-equity ratio of 1.63. The firm has a market capitalization of $88.75 billion, a P/E ratio of 93.14, a P/E/G ratio of 1.15 and a beta of 3.54.

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 analysts’ consensus estimates of $1.29 by ($0.26). Carvana had a net margin of 3.44% and a return on equity of 30.62%. The firm had revenue of $5.65 billion for the quarter, compared to analyst estimates of $5.04 billion. During the same period in the previous year, the business posted $0.64 earnings per share. Carvana’s revenue for the quarter was up 54.5% on a year-over-year basis. Analysts expect that Carvana Co. will post 2.85 EPS for the current fiscal year.

Key Stories Impacting 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.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on CVNA shares. Royal Bank Of Canada restated an “outperform” rating and set a $460.00 price target on shares of Carvana in a research note on Thursday, October 30th. Wells Fargo & Company raised their price target on shares of Carvana from $500.00 to $525.00 and gave the company an “overweight” rating in a report on Tuesday. Evercore ISI lifted their price target on shares of Carvana from $425.00 to $430.00 in a research report on Tuesday. Gordon Haskett dropped their price objective on shares of Carvana from $445.00 to $435.00 and set a “hold” rating for the company in a research report on Monday, January 5th. Finally, Zacks Research lowered shares of Carvana from a “strong-buy” rating to a “hold” rating in a report on Tuesday, November 4th. Nineteen equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $474.27.

Insider Buying and Selling

In related news, Director Michael E. Maroone sold 30,928 shares of the stock in a transaction dated Wednesday, December 3rd. The stock was sold at an average price of $400.34, for a total value of $12,381,715.52. Following the completion of the transaction, the director owned 143,573 shares of the company’s stock, valued at approximately $57,478,014.82. This represents a 17.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, COO Benjamin E. Huston sold 40,000 shares of the firm’s stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $439.50, for a total value of $17,580,000.00. Following the sale, the chief operating officer owned 100,758 shares of the company’s stock, valued at approximately $44,283,141. This trade represents a 28.42% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 467,626 shares of company stock worth $192,090,109 over the last quarter. Company insiders own 16.36% of the company’s stock.

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.