Heat Check: Compania de Minas Buenaventura S.A.A. (BVN) Vs. Carvana Co. (CVNA)

Compania de Minas Buenaventura S.A.A. (NYSE: BVN) shares are -5.63% down in the year-to-date (YTD) period and have moved 1.21% or $0.17 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +178.32% lower. Comparatively, the stock is -7.23% down YTD and 69.64% over the trailing 3-month period. If we look at the shorter duration, its week performance is 7.63% and 22.00% over the month.

Analyst Recommendations

On January 17, 2020, HSBC Securities recommended the BVN stock is a Hold, while earlier, Goldman had Upgrade the stock as a Buy on June 22, 2020. 9 analysts offering the recommendations for the stock have a consensus rating of 2.80 to suggest that the BVN stock is a “Moderate Buy. 1 of the 9 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 3 recommend buying, with 1 rating it as an Overweight.

The stock currently trades at $14.25 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $13.51. The forecasts give the Compania de Minas Buenaventura S.A.A. stock a price target range of $17.80 on the higher side while at least one analyst think the stock could plunge to a low of $8.00. The two limits represent an upside potential of 19.94% or -78.13%.

Earnings Forecast

Analysts estimate the earnings to increase 44.40% in the current quarter to $0.05, up from the $0.02 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.04, down -15.30% from -$0.05 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.1 and $0.13. Wall Street estimates earnings per share to be at an average of $0.61 for the next year.

Carvana Co. (NYSE:CVNA), on the other hand, is trading around $227.19 with a market cap of $36.92B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $171.26 and spell out a less modest performance – a -32.66% return. Some analysts are even forecasting -$2.94 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Carvana Co. (CVNA) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

CVNA’s operating margin was negative on the trailing 12 months basis, remaining steady at -11.50%, while the operating expenses over the recent quarter were at $240.06 million. This represented a 78.53% of the company’s total revenues which amounted $1.12 billion. With this in place, we can see that the company’s diluted EPS declined -$0.62 on the year-over-year period, shrinking to -$0.44 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $2.48 billion from $2.24 billion over the previous quarter. The cash flow from operating activities totaled -$175.42 million, significantly higher than the -$294.83 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$346.48 million.

Insider activity

Insiders have transacted a total of 51 times at Carvana Co. over the last 6 months, with insider purchases undertaken 12 times and accounting for 2,269,502 shares. Insider sales totaled 1,750,517 shares over the same period, with these deals completed in 39 transactions. Looking at these numbers, we realize that net purchases over that period are -27.0 shares. Insiders now hold a total of 2.62M shares after the latest sales, with 24.90% net shares purchased.

Major holders

Insiders own 1.00% of the company shares with a share float percentage of 58.73M. Investors are also buoyed by the number of investors in a company, with Carvana Co. having a total of 314 institutions that hold shares in the company. The top two institutional holders are Price (T.Rowe) Associates Inc with over 12.8 million shares worth more than $1.54 billion. As of Jun 29, 2020, Price (T.Rowe) Associates Inc held 18.43% of shares outstanding.

The other major institutional holder is FMR, LLC, with the investment firm holding over 9.62 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $1.16 billion and represent 13.86% of shares outstanding.