Handle With Care: Carvana Co. (NYSE: CVNA)

FIVE Stock
FIVE Stock

Fidelity Management & Research Co.. recently announced the acquisition of new stake in Carvana Co. (NYSE:CVNA). The institutional investor has increased its shareholding in the Consumer Cyclical company by 3.63% to 9.34 million shares with purchase of 0.33 million shares. This fresh investment now brings its stake to 13.51% valued currently at $1.45 billion. In addition, Morgan Stanley Investment Managem.. raised its holdings by 1.37 million to 8.47 million shares. And The Vanguard Group, Inc. has lifted its position by 31.15% or 1.4 million shares – to 5.87 million shares.

With over 1.9 million Carvana Co. (CVNA) shares trading Tuesday and a closing price of $227.19 on the day, the dollar volume was approximately $431.89 million. The shares have shown a positive weekly performance of 11.95% and its price on 09/01/20 gained nearly 5.20%. Currently, there are 66.33M common shares owned by the public and among those 58.73M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 21 analysts who have offered their price forecasts for CVNA have a consensus price objective of $180.00. The analysts have set the share’s price value over the next 12 months at a high of $250.00 and a low of $23.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Carvana Co. stock is 2.40 for the next 12 months. The average price target is -32.66% below its last price level and a downside to the estimated low will see the stock lose -887.78% over that period. But an upside of 9.12% will see the stock hit the forecast high price target while mean target price for the stock is $190.00.

Insiders at the company have transacted a total of 99 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 18 of these insider trades were purchases, accounting for 2,349,502 shares. Insider sales of the common stock occurred on 81 occasions, with total insider shares sold totaling 1,833,694 shares.

The top 3 mutual fund holders in Carvana Co. are Fidelity Advisor Series I -Growth, T Rowe Price Growth Stock Fund, and T Rowe Price Large Cap Growth Fun. Fidelity Advisor Series I -Growth owns 3.15 million shares of the company’s stock, all valued at over $488.67 million. The company sold -0.15 million shares recently to bring their total holdings to about 4.56% of the shares outstanding. T Rowe Price Large Cap Growth Fun bought 1.82 million shares to bring its total holdings to over 2.32 million shares at a value of $360.01 million. T Rowe Price Large Cap Growth Fun now owns shares totaling to 3.36% of the shares outstanding.

Shares of Carvana Co. (NYSE: CVNA) opened at $215.12, down -$0.84 from a prior closing price of $215.96. However, the script later closed the day at $227.19, up 5.20%. The company’s stock has a 5-day price change of 11.95% and 111.56% over the past three months. CVNA shares are trading 146.81% year to date (YTD), with the 12-month market performance up to 185.34% higher. It has a 12-month low price of $22.16 and touched a high of $225.45 over the same period. Currently, 1.9 million shares have been traded, compared to an average intraday trading volume of 1.86 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 14.38%, 40.38%, and 117.56% respectively.

Institutional ownership of Carvana Co. (NYSE: CVNA) 66.33M shares outstanding. Mutual fund holders own 52.56%, while other institutional holders and individual stakeholders account for 70.57% and 13.18% respectively.

It has a market capitalization of $36.92B and a beta (3y monthly) value of 2.49. The earnings-per-share (ttm) stands at -$3.00. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.41% over the week and 6.81% over the month.

Analysts forecast that Carvana Co. (CVNA) will achieve an EPS of -$0.54 for the current quarter, -$0.57 for the next quarter and -$1.85 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.74 while analysts give the company a high EPS estimate of -$0.36. Comparatively, EPS for the current quarter was -$0.56 a year ago. Earnings per share for the fiscal year are expected to decrease by -20.40%, and 37.10% over the next financial year. EPS should grow at an annualized rate of 30.50% over the next five years, compared to -19.20% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 21 brokerage firm advisors rate Carvana Co. (CVNA) as a “Moderate Buy” at a consensus score of 2.40. Specifically, 9 Wall Street analysts polled rate the stock as a buy, while 10 of the 21 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the CVNA, a number of firms have released research notes about the stock. Stifel stated their Hold rating for the stock in a research note on August 12, 2020, with the firm’s price target at $195. BofA Securities coverage for the Carvana Co. (CVNA) stock in a research note released on August 07, 2020 offered a Neutral rating with a price target of $230. Piper Sandler was of a view on July 28, 2020 that the stock is Overweight, while Goldman gave the stock Neutral rating on July 06, 2020, issuing a price target of $108. Nomura on their part issued Neutral rating on April 30, 2020.


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