ACV Auctions Inc. (NASDAQ:ACVA) has reported a significant stock transaction by director Robert P. Goodman, who sold a total of 96,874 shares of Class A Common Stock in two separate transactions. On August 30, 2024, shares were sold at prices ranging from $18.50 to $18.73, with a weighted average price of $18.60. The second sale occurred on September 3, 2024, with shares going for prices between $18.50 and $18.52, at a weighted average of $18.50.
The sales were executed in multiple transactions and involved entities associated with Bessemer Venture Partners IX L.P. (BVP IX), Bessemer Venture Partners IX Institutional L.P. (BVP IX Inst), and 15 Angels III LLC (15 Angels). According to the filing, BVP IX sold 52,965 shares, BVP IX Inst disposed of 42,432 shares, and 15 Angels sold 877 shares on August 30. On September 3, the numbers were 4,400 for BVP IX, 7,700 for BVP IX Inst, and 300 for 15 Angels.
The transactions resulted in a combined total of over $1.8 million in sales, providing investors with insight into the trading activity of one of the company's directors. Goodman, who is associated with the entities that conducted the sales, has disclaimed beneficial ownership of these securities, except to the extent of his pecuniary interest therein, if any.
Following these transactions, the reporting entities hold a substantial number of Class A and Class B shares, indicating ongoing investment in the company's future. Goodman's direct and indirect holdings, as well as his association with the selling entities, are detailed in the footnotes of the SEC filing.
ACV Auctions Inc. operates in the business services sector, providing a digital marketplace for wholesale vehicle transactions. The company is headquartered in Buffalo, New York, and continues to be a notable player in the automotive auction industry.
In other recent news, ACV Auctions, the online automotive marketplace for dealers, has reported a robust financial performance for the second quarter of 2024. The company saw a significant 29% year-over-year increase in revenue, reaching $161 million, along with a 22% year-over-year increase in vehicle sales, with 187,000 vehicles sold. Adjusted EBITDA also increased by 65% sequentially, indicating a potential path towards the company's first year of adjusted EBITDA profitability.
These recent developments also include a 33% year-over-year growth in auction and assurance revenue, which comprises 57% of total revenue. The company's marketplace services revenue, including ACV Transport and ACV Capital, grew by 30% year-over-year. Furthermore, ACV Auctions ended the quarter with $273 million in cash and cash equivalents and $110 million in debt.
For the third quarter, ACV Auctions anticipates revenue to be between $158 million and $162 million, with adjusted EBITDA between $6 million and $8 million. The company has also raised the full-year revenue guidance midpoint to $615 million to $625 million, with adjusted EBITDA guidance of $21 million to $25 million. These projections reflect ACV Auctions' focus on driving top-line growth, expanding margins, and creating long-term shareholder value.
InvestingPro Insights
Amidst the recent stock transactions by director Robert P. Goodman, ACV Auctions Inc. (NASDAQ:ACVA) continues to attract attention from investors and analysts alike. As of the latest data, ACVA holds a market capitalization of approximately $3 billion. This valuation comes in the context of a challenging period for the company, as indicated by a negative Price-to-Earnings (P/E) ratio of -36.78, reflecting the market's anticipation of future earnings rather than current profitability.
An InvestingPro Tip highlights that ACVA is expected to see net income growth this year, which may signal a turning point for the company's financial health. Additionally, analysts are optimistic about the company's sales, forecasting growth in the current year. This aligns with the reported revenue growth of 21.57% over the last twelve months as of Q2 2024, showcasing ACVA's ability to expand its top-line figures.
Investors may also find solace in the fact that ACVA's liquid assets exceed its short-term obligations, suggesting a solid liquidity position. This is a critical factor for stakeholders considering the company's financial stability and ability to meet immediate financial commitments. Moreover, the stock has experienced a strong return over the last month, with an 18.75% increase, which could be indicative of positive market sentiment.
For those interested in further insights, InvestingPro offers additional tips, including detailed analysis on ACVA's financial performance and stock price movements. There are currently 11 more InvestingPro Tips available, which can be accessed for a comprehensive understanding of ACVA's investment potential.
With the next earnings date set for November 6, 2024, investors will be keenly watching for signs of continued growth and profitability that could validate the positive trends indicated by the InvestingPro metrics and tips.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.