Hsbc Holdings PLC Boosts Holdings in Carvana Co. $CVNA

Hsbc Holdings PLC grew its stake in shares of Carvana Co. (NYSE:CVNA) by 239.6% in the fourth quarter, HoldingsChannel reports. The fund owned 221,727 shares of the company’s stock after buying an additional 156,430 shares during the quarter. Hsbc Holdings PLC’s holdings in Carvana were worth $93,748,000 at the end of the most recent quarter.

Several other large investors have also modified their holdings of CVNA. First Horizon Corp boosted its position in shares of Carvana by 6.4% in the fourth quarter. First Horizon Corp now owns 418 shares of the company’s stock worth $176,000 after acquiring an additional 25 shares during the last quarter. Finivi Inc. increased its position in Carvana by 4.6% during the fourth quarter. Finivi Inc. now owns 698 shares of the company’s stock worth $295,000 after purchasing an additional 31 shares during the last quarter. HB Wealth Management LLC increased its position in Carvana by 1.0% during the fourth quarter. HB Wealth Management LLC now owns 3,190 shares of the company’s stock worth $1,346,000 after purchasing an additional 31 shares during the last quarter. Gilder Gagnon Howe & Co. LLC raised its stake in Carvana by 1.7% during the second quarter. Gilder Gagnon Howe & Co. LLC now owns 1,846 shares of the company’s stock worth $622,000 after purchasing an additional 31 shares during the period. Finally, Insigneo Advisory Services LLC raised its stake in Carvana by 4.8% during the fourth quarter. Insigneo Advisory Services LLC now owns 696 shares of the company’s stock worth $294,000 after purchasing an additional 32 shares during the period. 56.71% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Commentary highlighted Carvana’s increased advertising spend as a key growth engine, with the company trying to build awareness and trust in the online used-car market. That could support longer-term revenue growth if marketing translates into more customers. Why Does Carvana See Advertising as a Crucial Growth Engine?
• Positive Sentiment: Analyst and investor commentary pointed to Carvana’s efforts to expand its business model, including testing a new-vehicle retail concept in Dallas that keeps purchases online. That suggests management is still looking for ways to widen its addressable market. Is Carvana Co. (CVNA) Among the Best Fundamentally Strong Stocks to Buy for Long Term?
• Neutral Sentiment: Several articles focused on whether Carvana’s sharp year-to-date decline could set up a rebound. This reflects a valuation and sentiment debate rather than a clear new catalyst. Down 19% YTD, is Carvana (CVNA) due for a bounce back?
• Neutral Sentiment: Recurve Capital said Carvana was a major drag on its portfolio, noting the stock fell in June and remained down sharply year to date. That underscores weak recent momentum, but it is more of a performance recap than a new business development. Recurve Capital’s Analysis on Carvana (CVNA)
• Negative Sentiment: Multiple insiders sold shares, including the VP, COO, and CFO, with the largest sale coming from the COO. Even though the trades were made under pre-arranged 10b5-1 plans, insider selling can still weigh on sentiment. Insider Selling: Carvana (NYSE:CVNA) VP Sells $342,650.00 in Stock
• Negative Sentiment: Coverage also noted that Carvana is still trading below recent moving averages and remains volatile, which may reinforce caution among traders despite its strong recent earnings beat. Carvana stock and company overview

Carvana Stock Performance

Carvana stock opened at $68.71 on Friday. The stock’s 50 day moving average price is $70.21 and its 200 day moving average price is $73.77. The firm has a market capitalization of $75.36 billion, a PE ratio of 41.80, a price-to-earnings-growth ratio of 11.58 and a beta of 3.46. The company has a debt-to-equity ratio of 1.05, a quick ratio of 2.57 and a current ratio of 4.09. Carvana Co. has a one year low of $54.46 and a one year high of $97.38.

Carvana (NYSE:CVNA) last released its quarterly earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share for the quarter, topping analysts’ consensus estimates of $0.32 by $1.37. Carvana had a return on equity of 41.46% and a net margin of 6.40%.The firm had revenue of $6.43 billion during the quarter, compared to analysts’ expectations of $6.12 billion. As a group, sell-side analysts expect that Carvana Co. will post 1.58 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on CVNA. Stephens boosted their price objective on shares of Carvana from $86.00 to $97.00 in a research note on Thursday, April 30th. Jefferies Financial Group cut their target price on Carvana from $97.00 to $95.00 and set a “buy” rating on the stock in a research report on Tuesday, April 14th. Gordon Haskett lifted their target price on Carvana from $67.00 to $85.00 and gave the company a “hold” rating in a report on Thursday, April 30th. BTIG Research reiterated a “buy” rating and issued a $97.00 target price on shares of Carvana in a report on Friday, June 5th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $107.40 price target on shares of Carvana in a research report on Thursday, April 30th. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $93.14.

Insider Buying and Selling at Carvana

In other news, insider Thomas Taira sold 18,850 shares of the company’s stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $68.20, for a total value of $1,285,570.00. Following the completion of the transaction, the insider directly owned 292,820 shares in the company, valued at approximately $19,970,324. This represents a 6.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through 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 the firm’s stock in a transaction on Friday, May 1st. The shares were sold at an average price of $77.44, for a total transaction of $4,936,672.50. Following the sale, the chief financial officer directly owned 1,050,635 shares of the company’s stock, valued at approximately $81,359,073.13. The trade was a 5.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 415,812 shares of company stock valued at $29,810,658. 15.19% of the stock is owned by company insiders.

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.