ACV Auctions Inc. (NASDAQ:ACVA) director Robert P. Goodman has recently sold a significant number of shares in the company, according to the latest SEC filings. Over a span of three days, Goodman disposed of shares at varying prices, totaling over $3.5 million in value.
On August 27, 2024, Goodman, through entities associated with Bessemer Venture Partners, sold a combined total of 186,834 shares of Class A Common Stock at a weighted average price of $18.64 per share. The transactions took place in multiple tranches, with prices ranging from $18.50 to $19.03. The total value of these sales amounted to approximately $3.48 million.
The following day, on August 28, Goodman continued to reduce his holdings, selling an additional 26,458 shares at a weighted average price of $18.50 per share. These shares were sold in multiple transactions with prices between $18.50 and $18.52, totaling around $489,473.
The sales concluded on August 29, with 6,965 shares being sold at a weighted average price of $18.51 per share. These were also sold in multiple transactions, with prices ranging from $18.50 to $18.62, and amounted to approximately $128,900 in total.
Goodman is associated with Deer IX & Co. Ltd., which is the general partner of the entities that sold the shares. While he disclaims beneficial ownership of these securities except to the extent of his pecuniary interest, the transactions were significant enough to be reported to the SEC.
Investors monitoring insider activity may take note of these transactions as they reflect a sizable divestment by the director of ACV Auctions. The company, based in Buffalo, New York, operates in the business services sector, providing an online marketplace for car auctions.
In other recent news, ACV Auctions has reported a robust financial performance for the second quarter of 2024. The company saw a 29% year-over-year increase in revenue, hitting $161 million, and a 22% year-over-year growth in vehicle sales, with 187,000 vehicles sold. Adjusted EBITDA also experienced a significant 65% sequential rise. These recent developments put ACV Auctions on a trajectory towards its first year of adjusted EBITDA profitability.
Analysts note that ACV Auctions ended the quarter with $273 million in cash and equivalents, and $110 million in debt. For the third quarter, the company projects revenue to be between $158 million and $162 million, with adjusted EBITDA between $6 million and $8 million. For the full year, ACV Auctions has raised the midpoint of its revenue guidance to $615 million to $625 million and adjusted EBITDA guidance to $21 million to $25 million. The company remains optimistic about its performance and is focused on driving growth, expanding margins, and creating long-term shareholder value.
InvestingPro Insights
ACV Auctions Inc. (NASDAQ:ACVA) has been in the spotlight following recent insider trading activity. Beyond the transactions, potential investors and current shareholders might find the following InvestingPro Data and InvestingPro Tips insightful when considering the company's financial health and future prospects.
InvestingPro Data shows that ACV Auctions holds a market capitalization of $3.04 billion, indicating a significant presence in the market. Despite this, the company has a negative Price-to-Earnings (P/E) ratio of -37.66, reflecting that the company has not been profitable over the last twelve months as of Q2 2024. This is corroborated by the adjusted P/E ratio, which stands at -40.68, further underscoring the company's recent lack of profitability.
However, the company's revenue tells a different story, with a growth of 21.57% over the last twelve months as of Q2 2024, demonstrating a strong ability to increase sales. This is in line with one of the InvestingPro Tips, which highlights that analysts anticipate sales growth in the current year. Moreover, the company's gross profit margin stands at 23.48%, which, while not exceptional, indicates a reasonable ability to control the cost of goods sold relative to sales.
One of the InvestingPro Tips that investors might find encouraging is that ACVA holds more cash than debt on its balance sheet, which suggests a solid liquidity position. Additionally, the company is expected to turn profitable this year, as per analyst predictions, which could be a pivotal point for the company's financial trajectory.
For those interested in more detailed analysis and additional insights, InvestingPro provides a comprehensive list of tips – with 4 analysts having revised their earnings upwards for the upcoming period, which could signal an optimistic outlook on the company's performance. In total, there are 10 additional InvestingPro Tips available for ACVA, which can be explored for a deeper understanding of the company's financial nuances.
Overall, while the insider selling activity by director Robert P. Goodman may raise questions, the financial data and expert analysis available through InvestingPro paint a broader picture of ACVA's potential and challenges, offering valuable context for investors.
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