Carvana Co.

New York Stock Exchange
Back to all articles
Bullish +65

Hsbc Holdings PLC Grows Stock Position in Carvana Co. $CVNA - MarketBeat

📈 HSBC Holdings PLC boosted its Carvana stake by 239.6% in Q4, adding 156,430 shares worth roughly $93.7 million.

💰 Carvana beat earnings estimates significantly with $1.69 EPS versus a consensus of $0.32 and revenue of $6.43 billion.

📊 Analysts maintain a 'Moderate Buy' rating with an average price target of $93.14, though targets vary from $85 to $107.

🏦 Institutional ownership stands at 56.71%, while insiders own 15.19% of the total stock outstanding.

💸 Insiders sold over $29 million in shares during the last quarter under pre-arranged Rule 10b5-1 trading plans.

📉 The stock trades at a P/E ratio of 40.49 with a market capitalization of $73.01 billion.

🛡️ Financial health metrics show a current ratio of 4.09 and a debt-to-equity ratio of 1.05.

📉 Technical indicators place the stock below its 50-day moving average ($71.59) and 200-day moving average ($75.09).

🚗 Carvana operates an online-only used vehicle retail model with a seven-day return policy.

📅 The company reported earnings on April 29th, with analysts expecting $1.58 EPS for the current fiscal year.

Bullish Signals
  • Carvana significantly beat quarterly earnings expectations, reporting $1.69 EPS compared to a consensus of only $0.32.
  • Revenue of $6.43 billion exceeded analyst forecasts of $6.12 billion, demonstrating strong top-line growth.
  • The company achieved a net margin of 6.40% and a return on equity of 41.46%, indicating efficient operations.
  • Major institutional investor HSBC Holdings PLC increased its position by 239.6%, signaling confidence in the stock.
  • Citizens JMP raised their price target from $92.00 to $103.00 and upgraded the rating to 'market outperform'.
  • Deutsche Bank Aktiengesellschaft reissued a 'buy' rating with a high price target of $107.40.
  • Wells Fargo & Company lifted their price target from $85.00 to $95.00 and assigned an 'overweight' rating.
Risk Factors
  • Insiders sold a total of 415,812 shares worth $29,056,896 in the last quarter, representing a net reduction in insider ownership.
  • Jefferies Financial Group lowered its price target from $97.00 to $95.00, indicating some caution among analysts.
  • Weiss Ratings cut Carvana's rating from 'buy (b-)' to 'hold (c+)', reflecting mixed sentiment on the stock.
  • The stock is currently trading below its 50-day moving average of $71.59 and 200-day moving average of $75.09.
Full Analysis
HSBC Holdings PLC significantly increased its stake in Carvana Co. (NYSE: CVNA) by 239.6% during the fourth quarter, purchasing an additional 156,430 shares. This move brought HSBC's total holding to 221,727 shares, valued at approximately $93.7 million as of the latest SEC filing, representing a 0.10% ownership stake in the company. Carvana reported robust quarterly financial results that exceeded Wall Street expectations. The company posted earnings per share (EPS) of $1.69 against a consensus estimate of $0.32 and generated revenue of $6.43 billion, surpassing the anticipated $6.12 billion. These figures highlight strong operational performance despite broader market volatility. Analyst sentiment remains cautiously optimistic with a consensus rating of 'Moderate Buy' and an average price target of $93.14. While some institutional investors like Citizens JMP raised their price targets, others such as Jefferies Financial Group lowered theirs. Notably, company insiders including VP Stephen R. Palmer and Director J Danforth Quayle executed pre-arranged sales totaling over $29 million in the last quarter. The article provides a comprehensive financial snapshot of Carvana, noting a market cap of $73.01 billion and a P/E ratio of 40.49. Key metrics include a current ratio of 4.09 and a debt-to-equity ratio of 1.05. The stock has traded between a 52-week low of $54.46 and a high of $97.38, with technical indicators showing the price currently below its 50-day and 200-day moving averages.