Stephen R. Palmer, Vice President of Accounting at Carvana Co. (NYSE:CVNA), recently sold shares of the company's stock, totaling over $480,000. The transactions, which took place on May 1 and 2, 2024, were executed under a pre-arranged trading plan.
On May 1, Palmer sold a total of 4,700 shares at prices ranging from $82.94 to $90.06 per share, amounting to approximately $428,567. The trades on the following day involved 384 shares, which were sold at higher prices between $114.73 and $117.89, bringing in an additional $55,753. The sales were conducted according to a Rule 10b5-1 trading plan, which Palmer had adopted on November 8, 2023.
The transactions were made public through a Form 4 filing with the Securities and Exchange Commission. Following the sales, Palmer still owns 56,392 shares of Carvana, indicating continued investment in the company's future.
Carvana, known for its e-commerce platform for buying and selling used cars, has been a notable player in the automotive retail industry. These transactions offer insights into the trading activities of the company's executives, which can be of interest to current and potential investors monitoring the stock's performance.
InvestingPro Insights
As Carvana Co. (NYSE:CVNA) continues to navigate the dynamic automotive retail market, recent stock transactions by company insiders may signal various sentiments. Stephen R. Palmer's sale of shares has caught the attention of investors, and a deeper look at Carvana's financial metrics and market performance can provide further context to these transactions.
InvestingPro data highlights Carvana's market capitalization at $24.83 billion, reflecting the company's substantial presence in the industry. Despite a negative revenue growth rate of -11.7% over the last twelve months as of Q1 2024, the company has experienced a significant quarterly revenue growth of 17.46% in Q1 2024. This contrast suggests a recent uptick in Carvana's sales performance, which could be a factor in recent stock price movements.
The stock has indeed been on a remarkable trajectory, with a 1-year price total return of 1589.86% as of the specified date in 2024. This explosive growth is further emphasized by a 6-month price total return of 276.92%, showcasing Carvana's strong short-term performance. Investors following the stock's journey will note that it is trading near its 52-week high, at 97.96% of the peak price, which was $116.5 at the previous close.
InvestingPro Tips for Carvana suggest that the stock is currently in overbought territory according to the Relative Strength Index (RSI), which may be indicative of a potential pullback or consolidation in price. Additionally, Carvana is trading at a low P/E ratio relative to near-term earnings growth, signaling that the stock may be undervalued based on its growth prospects. These insights, coupled with the high volatility that characterizes Carvana's stock, could be crucial for investors considering entry or exit points.
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