On September 9, 2023, it was reported that Deuterium Capital Management LLC had acquired a new stake in shares of Carvana Co. (NYSE:CVNA) during the first quarter. The firm purchased 25,000 shares of the company’s stock, which were valued at approximately $245,000.
Carvana Co. and its subsidiaries operate an e-commerce platform in the United States that facilitates the buying and selling of used cars. Through their platform, customers can research and identify vehicles, inspect them using the company’s 360-degree vehicle imaging technology, obtain financing and warranty coverage, make a purchase, and schedule delivery or pick-up from their desktop or mobile devices.
Carvana’s innovative approach to the used car market has gained significant attention in recent years. By providing customers with a convenient online platform, they have disrupted traditional dealership models and catered to modern consumers’ preferences for digital purchasing experiences.
The acquisition by Deuterium Capital Management LLC underscores investor confidence in Carvana Co.’s business model and future prospects. As an investment firm strategically analyzing various opportunities in the market, Deuterium Capital Management LLC’s decision to invest in Carvana indicates their belief in the company’s potential for growth and success.
From a financial perspective, Carvana Co.’s stock performance will likely be closely monitored following this investment. The value of the 25,000 shares purchased by Deuterium Capital Management LLC will be subject to market fluctuations and could influence overall investor sentiment towards the company.
Investors interested in gaining further insights into Carvana Co.’s stock may refer to our latest stock analysis on our website. This analysis provides valuable information regarding industry trends, financial performance metrics, as well as potential risks and opportunities associated with investing in Carvana Co.
As always when investing in stocks, it is crucial for investors to conduct thorough research before making any decisions. Factors such as market conditions, industry outlooks, and company fundamentals should be carefully evaluated to ensure informed investment choices.
Overall, Deuterium Capital Management LLC’s acquisition of a stake in Carvana Co. demonstrates continued interest and confidence in the company’s e-commerce platform for used cars. Carvana’s disruptive business model and innovative approach have positioned it as a significant player in the industry, attracting both investors and customers alike.
Investors will undoubtedly keep a close eye on Carvana Co.’s stock performance as the company continues to revolutionize the way people buy and sell used cars.
The Bank of New York Mellon Corporation
Updated on: 10/09/2023
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Carvana Receives High Interest from Hedge Funds and Analysts, Faces Uncertain Future
Carvana (NYSE:CVNA), an e-commerce platform for buying and selling used cars, has attracted the attention of several hedge funds and institutional investors recently. Geneos Wealth Management Inc. increased its stake in Carvana by 17% during the first quarter, now owning 1,929 shares valued at $230,000. Similarly, Mackenzie Financial Corp raised its position in Carvana by 21.4% during the same quarter, holding 2,428 shares valued at $290,000. Additionally, 1832 Asset Management L.P. acquired a new stake in Carvana worth $59,000.
The Arizona State Retirement System also experienced growth in its position in Carvana by 3.9% during the fourth quarter of last year, now owning 25,376 shares valued at $120,000. Lastly, Captrust Financial Advisors saw a significant increase of 270.9%, owning 1,324 shares valued at $30,000.
Overall, hedge funds and institutional investors now hold approximately 56.71% of Carvana’s stock. With such an influx of investment from these entities, it appears that there is significant interest and confidence in Carvana’s business model.
Furthermore Carvana has been the subject of several research analyst reports. DA Davidson raised their price target on Carvana from $7.00 to $18.00 in a research note on June 9th earlier this year. Piper Sandler downgraded their rating from “overweight” to “neutral” and increased their target price from $29.00 to $48.00 on July 20th.
Robert W. Baird also upped their target price on August 10th from $10 to $45 as did Citigroup who boosted theirs from $25 to $50 while giving the stock a “neutral” rating on July 21st.
However Jefferies Financial Group took a different stance, lowering Carvana from a “hold” rating to an “underperform” with a reduced target price from $55 to $30 on July 31st.
From the information gathered compilled by Bloomberg.com, it appears that there is currently an average “Hold” rating for Carvana stock, along with a consensus target price of $39.22.
In terms of recent trading activity, Carvana stock traded down $1.16 during mid-day trading on Friday, reaching $46.47. The company experienced a trading volume of 2,131,422 shares, compared to its average volume of 24,006,094 shares. Carvana’s stock has fluctuated between a 12-month low of $3.55 and a high of $57.19.
Carvana last released its quarterly earnings data on July 19th, reporting earnings per share of ($0.55) for the quarter. This was higher than analysts’ consensus estimates of ($1.20), beating expectations by $0.65 per share. The company generated revenue amounting to $2.97 billion during the quarter, surpassing analyst estimates of $2.62 billion.
Despite these positive earnings results, Carvana’s net margin remained negative at 11.08%, along with a negative return on equity amounting to 1,491.81%. Equities analysts predict that Carvana will post -3.74 earnings per share for the current fiscal year.
With all this in mind and given the recent influx of investment from hedge funds and institutional investors, as well as contrasting ratings from research analysts and fluctuating stock prices, it will be intriguing to observe how Carvana continues to navigate its path in the market moving forward.