Virtu Financial LLC Makes New $4.26 Million Investment in Carvana Co. $CVNA

Virtu Financial LLC bought a new stake in Carvana Co. (NYSE:CVNA) during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 10,084 shares of the company’s stock, valued at approximately $4,256,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in CVNA. Thurston Springer Miller Herd & Titak Inc. purchased a new stake in shares of Carvana during the 4th quarter worth approximately $29,000. Farmers & Merchants Investments Inc. bought a new stake in shares of Carvana in the 4th quarter worth approximately $29,000. Motiv8 Investments LLC bought a new stake in shares of Carvana in the 4th quarter worth approximately $33,000. Salomon & Ludwin LLC lifted its stake in Carvana by 112.5% in the fourth quarter. Salomon & Ludwin LLC now owns 85 shares of the company’s stock valued at $37,000 after purchasing an additional 45 shares during the last quarter. Finally, Washington Trust Advisors Inc. purchased a new position in Carvana in the third quarter valued at approximately $38,000. 56.71% of the stock is currently owned by hedge funds and other institutional investors.

Carvana News Summary

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana is pushing deeper into new-car sales with its Dallas “car playground” concept and plans to acquire seven Stellantis dealerships, which could expand its addressable market and support longer-term growth. Carvana (CVNA) Stock Could Be 45.6% Undervalued After Dallas Launch And Dealership Deal
• Positive Sentiment: Commentary around Carvana’s new sales model has highlighted customer convenience and innovation, which may be helping sentiment around the company’s long-term strategy. Carvana opens ‘car playground’ for easy test drive booking
• Positive Sentiment: Some analysts continue to argue that CVNA remains undervalued relative to its growth and operational improvements, with bullish reports pointing to expanding margins and strong execution. Carvana: 40% Growth, Expanding Margins, And More Upside Ahead
• Neutral Sentiment: Carvana’s insider activity included a director sale of 15,000 shares, but the transaction was relatively small compared with the executive’s remaining stake and does not by itself signal a major fundamental change. SEC Form 4 filing for Ira J. Platt
• Negative Sentiment: Bearish articles are warning that Carvana’s rally may have run ahead of fundamentals, citing valuation risk and the potential for a “bull trap” if growth expectations cool. Carvana’s Triple-Top Bull-Trap Plays Out – Inflated Valuation Risks Remain
• Negative Sentiment: Peer CarMax’s earnings update raised concerns about used-car margin pressure, weaker volumes, and credit risk, which spilled over into CVNA and weighed on sentiment across the auto retail group. Carvana Stock Falls As CarMax Warns Of Persistent Low Margins

Wall Street Analyst Weigh In

Several brokerages have weighed in on CVNA. Robert W. Baird set a $88.00 price objective on Carvana in a report on Friday, May 15th. Gordon Haskett boosted their target price on Carvana from $67.00 to $85.00 and gave the company a “hold” rating in a research note on Thursday, April 30th. Morgan Stanley upped their price target on Carvana from $90.00 to $102.00 and gave the company an “overweight” rating in a research report on Thursday, April 30th. Bank of America increased their price target on Carvana from $72.00 to $82.00 and gave the stock a “neutral” rating in a research note on Tuesday, April 21st. Finally, Zacks Research raised Carvana from a “hold” rating to a “strong-buy” rating in a report on Monday, June 8th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $93.14.

Insider Transactions at Carvana

In other news, CFO Mark W. Jenkins sold 63,750 shares of Carvana stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $70.40, for a total transaction of $4,488,000.00. Following the completion of the sale, the chief financial officer owned 1,036,594 shares in the company, valued at approximately $72,976,217.60. This trade represents a 5.79% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Thomas Taira sold 5,597 shares of the business’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $67.15, for a total value of $375,838.55. Following the transaction, the insider directly owned 315,075 shares of the company’s stock, valued at $21,157,286.25. The trade was a 1.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 415,812 shares of company stock worth $29,056,896. 15.19% of the stock is owned by insiders.

Carvana Stock Up 5.9%

Shares of NYSE CVNA opened at $66.56 on Friday. The business has a 50-day simple moving average of $71.54 and a two-hundred day simple moving average of $75.15. The company has a market cap of $73.01 billion, a P/E ratio of 40.49, a P/E/G ratio of 10.61 and a beta of 3.45. Carvana Co. has a 52 week low of $54.46 and a 52 week high of $97.38. The company has a quick ratio of 2.57, a current ratio of 4.09 and a debt-to-equity ratio of 1.05.

Carvana (NYSE:CVNA) last posted its quarterly earnings data on Wednesday, April 29th. The company reported $1.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $1.37. The company had revenue of $6.43 billion during 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%. Research analysts anticipate that Carvana Co. will post 1.58 earnings per share for the current fiscal year.

Carvana 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.