In a recent transaction, an insider at Carvana Co. (NYSE:CVNA), the online auto retailer, has sold a significant amount of company stock, totaling over $12.9 million. The transactions occurred on two separate dates, with prices ranging from $104.0263 to $112.7355 per share.
The insider, identified as Ernest C. Garcia II, who is also a ten percent owner of the company, executed multiple sales of Class A Common Stock on May 24 and May 28, 2024. The sales were conducted under a pre-arranged Rule 10b5-1 trading plan, which allows insiders to sell shares at predetermined times to avoid accusations of trading on non-public information.
On May 24, Garcia sold shares in several transactions at weighted average prices that varied between $109.1065 and $112.7355. Similarly, on May 28, additional shares were sold at weighted average prices ranging from $104.0263 to $110.6609. These transactions resulted in a total sale value of $12,987,359 for the non-derivative securities.
It is important to note that Garcia retains substantial ownership of Carvana Co. through direct and indirect holdings. According to the filing, Garcia holds shares directly and also has indirect ownership through entities such as Verde Investments, Inc., Ernest Irrevocable 2004 Trust III, and Ernest C. Garcia III Multi-Generational Trust III, among others.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, which provides transparency on the trading activities of company insiders. While the sales are substantial, investors often look at such transactions in the context of the insider's total holdings and the reasons behind the trading plan.
Carvana Co. has been a significant player in the online auto sales industry, offering a platform for buying and selling used cars. The company's stock performance and insider transactions are closely watched by investors seeking to understand market trends and the confidence insiders have in their company's prospects.
InvestingPro Insights
As Carvana Co. (NYSE:CVNA) continues to navigate the dynamic online auto sales market, recent insider transactions have drawn attention to the company's financial health and stock performance. Amidst these developments, key metrics and insights from InvestingPro provide a deeper look into Carvana's standing in the industry.
Carvana's market capitalization stands at $21.48 billion, reflecting its significant presence in the sector. Despite a challenging period that saw the stock price take a hit over the last week, resulting in a 9.22% drop in the one-week total return, Carvana's stock has shown remarkable resilience over the longer term, with a one-year price total return of 794.8%. This volatility is characteristic of Carvana's trading pattern, as the stock generally trades with high price volatility. Investors interested in the company's performance should note that the P/E ratio is currently at 18.49, which is relatively low considering near-term earnings growth prospects.
InvestingPro Tips highlight that Carvana's stock is trading at a high Price / Book multiple of 74.0 as of the last twelve months leading up to Q1 2024. This suggests that the market has high expectations for the company's asset value and future growth. Additionally, 8 analysts have revised their earnings upwards for the upcoming period, indicating a potential positive outlook on the company's profitability.
For those seeking a comprehensive collection of insights, InvestingPro offers a range of additional tips for Carvana, which can be found at Investing.com/pro/CVNA. Users can take advantage of these insights by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Investors monitoring insider activity, such as the recent sales by Ernest C. Garcia II, may find these metrics particularly relevant as they evaluate Carvana's stock performance and future potential in the context of broader market trends and company-specific factors.
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