BUFFALO, NY—Brian Hirsch, a director at ACV Auctions Inc. (NASDAQ:ACVA), reported a significant transaction involving the company's Class A common stock. According to a recent SEC filing, Hirsch sold 146,681 shares on November 12, 2024, at a weighted average price of $20.69 per share. This sale amounted to a total value of approximately $3,034,829. Following the transaction, Hirsch retains ownership of 9,239 shares.
The transaction is part of a series of activities reported by Hirsch, including conversions and distributions of shares in-kind, primarily involving Tribeca Venture Fund II entities. These transactions did not involve any additional consideration. The sales and distributions reflect Hirsch's ongoing management of his holdings in ACV Auctions, where he plays a strategic role as a director.
In other recent news, ACV Auctions Inc. reported a 44% increase in revenue, reaching a record $171 million in the third quarter of 2024. The company's vehicle sales also saw a significant rise of 32%, with 198,000 units sold. Notably, the Adjusted EBITDA exceeded expectations, hitting $11 million, which surpassed the guidance by 38%. These recent developments led to ACV raising its full-year revenue guidance, now projecting figures between $630 million and $634 million.
Further, ACV Auctions Inc. is setting its sight on market share expansion and product differentiation, targeting midterm goals. However, the company anticipates dealer wholesale volumes to remain flat in 2024. The company also projects its Q4 2024 revenue to be between $152 million and $156 million, with an expected Adjusted EBITDA between $2 million and $4 million.
Despite facing challenges due to seasonal factors and recent hurricanes, ACV Auctions Inc. remains committed to its growth trajectory. The company's focus on technology and market expansion underpin its positive outlook for future growth.
InvestingPro Insights
As Brian Hirsch, a director at ACV Auctions Inc. (NASDAQ:ACVA), makes significant moves with his stock holdings, it's worth examining the company's current financial position and market performance. According to InvestingPro data, ACV Auctions has a market capitalization of $3.42 billion, reflecting its substantial presence in the online vehicle auction market.
The company's revenue growth has been impressive, with a 43.96% increase in quarterly revenue as of Q3 2024. This strong top-line performance aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year. Despite this positive trajectory, it's important to note that ACV Auctions is not yet profitable over the last twelve months, with an operating income margin of -14.07%.
Interestingly, another InvestingPro Tip suggests that the company holds more cash than debt on its balance sheet, which could provide financial flexibility as it pursues growth opportunities. This solid cash position is particularly relevant given the recent insider selling activity, as it may assuage concerns about the company's liquidity.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights with 11 more tips available for ACV Auctions. These tips could provide valuable context for understanding the recent director's stock sale and the company's overall financial health.
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