Carvana Co. (NYSE:CVNA) Chief Operating Officer Benjamin E. Huston has sold a significant portion of his company stock, with transactions totaling over $2 million. The sales took place on May 2, 2024, according to a recent filing with the Securities and Exchange Commission.
The transactions involved the sale of Carvana's Class A Common Stock at varying prices. Huston sold 570 shares at an average price of $112.15, 3,500 shares at $113.42, 4,112 shares at $114.47, 5,689 shares at $115.51, 2,600 shares at $116.35, 1,329 shares at $117.64, and 200 shares at $118.35. These sales were executed in multiple trades within the price ranges provided, with the prices reported reflecting the volume-weighted average sale price.
Prior to these sales, Huston acquired 52,663 shares as part of a vested restricted stock unit award, as indicated by the footnotes in the SEC filing. The performance condition outlined in the 2023 Performance Restricted Stock Unit Agreement had been met, leading to the full vesting of the RSUs on May 1, 2024.
The total value of the sold shares amounted to approximately $2,071,256, making it a noteworthy transaction for the executive of the online auto retailer. Following these sales, Huston's ownership in the company stands at 213,548 shares of Class A Common Stock.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's current valuation and future prospects. The recent activity by Carvana's COO could be of particular interest to shareholders and potential investors looking to gauge market sentiment.
Carvana has not made any official statements regarding the transactions, and the details provided in this article are based solely on the SEC filing.
InvestingPro Insights
As Carvana Co. (NYSE:CVNA) grapples with the dynamics of the market, the recent insider selling by COO Benjamin E. Huston has raised eyebrows. To provide a broader context to these transactions, let's delve into some key financial metrics and expert analysis from InvestingPro. Carvana's current market capitalization stands at $24.83 billion, indicating its significant presence in the online auto retail sector. Despite this, the company's shares have been identified as trading at a low Price-to-Earnings (P/E) ratio relative to near-term earnings growth, with a P/E ratio of 21.15. However, it's important to note that the adjusted P/E ratio for the last twelve months as of Q1 2024 is -32.84, suggesting potential concerns about profitability.
InvestingPro Tips highlight that Carvana's stock has experienced a significant return over the last week, with a one-week price total return of 44.31%. This could be indicative of a positive short-term investor sentiment. Additionally, the company's stock is considered to be trading near its 52-week high, with the price at 97.96% of this peak, reflecting a strong performance over the last year. Given the volatility of Carvana's stock, which trades with high price volatility according to InvestingPro Tips, these insights could be crucial for investors trying to understand the recent insider selling.
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