TEMPE, AZ—Paul Breaux, Vice President, General Counsel, and Secretary at Carvana Co. (NYSE:CVNA), recently executed several stock transactions involving the company's Class A Common Stock. According to a recent SEC filing, Breaux sold a total of 40,000 shares over two days, October 22 and 23, at an average price of $198 per share, amounting to approximately $7.92 million.
In addition to these sales, Breaux acquired shares through stock option exercises and conversions. On October 22, he exercised options to acquire 6,769 shares at a price of $10.07 per share. The following day, he converted Class B Units into 32,716 shares of Class A Common Stock, as per an exchange agreement with Carvana Group, LLC. These transactions were part of a pre-established trading plan under Rule 10b5-1.
After these activities, Breaux holds 101,821 shares of Carvana's Class A Common Stock directly.
In other recent news, Carvana has been the subject of notable attention from various analyst firms. Wells Fargo (NYSE:WFC), for example, increased its price target for Carvana to $250, maintaining its Overweight rating. The firm cited improved fundamentals and long-term growth potential, predicting earnings per share (EPS) of 72 cents and $2.22 for fiscal years 2024 and 2025 respectively.
BofA Securities also raised its price target to $210 from $185, maintaining a Buy rating, while Stephens reaffirmed its Overweight rating with a $190 target. These adjustments reflect confidence in Carvana's strategy and market position, despite challenges in the used vehicle market.
In terms of company developments, Carvana recently achieved a milestone of four million online vehicle transactions. Furthermore, the company's third-quarter unit sales projections have been raised to 107.8 thousand units, marking a 33% increase year-over-year. Carvana's management also projects a year-over-year growth rate of over 25% for third-quarter unit sales and EBITDA for 2024 between $1 billion and $1.2 billion.
However, it's worth noting that despite these positive adjustments, Citi maintains a neutral stance on Carvana. The firm's position underscores the importance of diverse perspectives in the analysis of the company's performance.
InvestingPro Insights
The recent stock transactions by Paul Breaux, Carvana's Vice President and General Counsel, come at a time when the company's stock is showing remarkable performance. According to InvestingPro data, Carvana's stock has seen a staggering 532.01% price total return over the past year, with a 165.72% increase in just the last six months. This aligns with the InvestingPro Tip that Carvana has experienced a "high return over the last year."
The timing of Breaux's sales is particularly noteworthy, as Carvana is currently trading near its 52-week high, with its price at 98.51% of the highest point in the past year. This information, coupled with the InvestingPro Tip that the stock's RSI suggests it's in overbought territory, may provide context for the executive's decision to sell.
Despite the strong stock performance, it's important to note that Carvana operates with a moderate level of debt, as highlighted by another InvestingPro Tip. This factor, along with the company's financial metrics, could be crucial for investors to consider.
For a more comprehensive analysis, InvestingPro offers 19 additional tips on Carvana, providing deeper insights into the company's financial health and market position.
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