Brightlight Capital Management LP has reduced its stake in Carvana Co. (NYSE: CVNA) by an impressive 30.5%, according to a report from HoldingsChannel.com. The firm sold 69,300 shares during the second quarter, leaving it with 158,000 shares in total. This adjustment marks Carvana as the largest position in Brightlight’s investment portfolio, which accounted for 29.4% of its overall investments. As of the latest reporting period, Brightlight’s holdings in Carvana were valued at approximately $53.24 million.
Several other institutional investors have also adjusted their stakes in Carvana recently. Hilltop National Bank entered a new position valued at about $25,000 in the same quarter. Brooklyn Investment Group significantly increased its holdings by 961.5% during the first quarter, now owning 138 shares worth $29,000 after acquiring an additional 125 shares. Similarly, SJS Investment Consulting Inc. raised its position by 960.0% in the second quarter, owning 106 shares valued at $36,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main and LRI Investments LLC also acquired new stakes valued at approximately $38,000 and $42,000, respectively. Notably, institutional investors, including hedge funds, now own 56.71% of Carvana’s shares.
Analyst Ratings and Insider Transactions
In recent weeks, multiple analysts have weighed in on Carvana’s stock performance. Bank of America has raised its price target from $385.00 to $455.00, maintaining a “buy” rating. BTIG Research and Needham & Company LLC also reaffirmed their “buy” ratings with price targets of $450.00 and $500.00, respectively. Royal Bank of Canada reiterated an “outperform” rating, setting a price objective of $460.00. Currently, 18 analysts have rated Carvana’s stock as a Buy, while six analysts have given it a Hold rating. The average rating stands at “Moderate Buy” with a consensus price target of $438.76, as reported by MarketBeat.com.
Insider trading activity has also been noteworthy. On December 8, 2023, insider Thomas Taira sold 30,952 shares at an average price of $435.96, totaling approximately $13.49 million. Following this transaction, Taira holds 69,880 shares, valued at around $30.46 million, representing a 30.70% reduction in his stake. Another insider, Daniel J. Gill, sold 80,000 shares on the same day for a total of $35.16 million, reducing his ownership by 29.51% to 191,106 shares valued at $83.99 million. Collectively, insiders have sold 624,332 shares worth $251.47 million in the last quarter, while corporate insiders hold 17.12% of the company’s stock.
Carvana’s Market Position and Financial Performance
Carvana’s stock opened at $455.95 recently, reflecting its strong market presence. The company has a market capitalization of $99.19 billion, with a price-to-earnings ratio of 104.10 and a price-to-earnings-growth ratio of 1.71. Carvana’s financial metrics include a debt-to-equity ratio of 1.63, a current ratio of 4.05, and a quick ratio of 2.55. The stock has seen a 1-year low of $148.25 and a 1-year high of $485.33.
The company reported its quarterly earnings on October 29, 2023, with earnings per share (EPS) of $1.03, falling short of the consensus estimate of $1.29 by $0.26. Carvana achieved revenue of $5.65 billion for the quarter, surpassing analysts’ expectations of $5.04 billion. The firm reported a net margin of 3.44% and a return on equity of 30.62%, with quarterly revenue increasing by 54.5% compared to the previous year. Analysts project that Carvana Co. will post an EPS of 2.85 for the current year.
Carvana Co. operates an e-commerce platform dedicated to buying and selling used cars within the United States. The platform allows customers to research, inspect, and purchase vehicles, all while facilitating financing and warranty options through user-friendly desktop and mobile interfaces.
