In a recent transaction, Robert P. Goodman, a director of ACV Auctions Inc. (NASDAQ:ACVA), sold a significant number of shares in the company. The sales, which took place over three days, resulted in a total disposal worth over $6 million.
On August 14, 2024, a total of 87,765 shares of ACV Auctions Inc. were sold at prices ranging from $18.05 to $18.72, with a weighted average price of $18.34. The following day, on August 15, 399,116 shares were sold between $18.40 and $19.00, averaging at $18.70 per share. The sales concluded on August 16, with 309,900 shares changing hands at prices from $18.56 to $19.16, with a weighted average of $18.80 per share.
These transactions were part of a series of sales conducted by entities associated with Goodman, including Bessemer Venture Partners IX L.P. (BVP IX), Bessemer Venture Partners IX Institutional L.P. (BVP IX Inst), and 15 Angels III LLC. (15 Angels). Goodman has indicated that he is a director of Deer IX & Co. Ltd., which is the general partner of the entities that sold the shares. However, he has disclaimed beneficial ownership of these securities, except to the extent of any pecuniary interest he may have.
ACV Auctions Inc., headquartered in Buffalo, New York, operates in the business services sector, providing a range of services to its clients. The company's stock is publicly traded on the NASDAQ exchange under the symbol ACVA.
Investors and interested parties can request more detailed information about the specific number of shares sold at each price point within the ranges disclosed. This latest sale provides transparency into the trading activities of one of the company's directors and offers insights into the ownership changes within ACV Auctions Inc.
In other recent news, ACV Auctions reported a notable increase in its financial performance for the second quarter of 2024. The company experienced a 29% year-over-year rise in revenue, reaching $161 million, and a 22% growth in vehicle sales, selling 187,000 vehicles. Adjusted EBITDA also saw a significant 65% sequential increase. These recent developments indicate a strong performance and potential for adjusted EBITDA profitability.
Another highlight from ACV Auctions' recent performance is the 33% year-over-year growth in auction and assurance revenue, which accounted for 57% of total revenue. Marketplace services revenue, encompassing ACV Transport and ACV Capital, also grew 30% year-over-year. Additionally, the company's SaaS and data services products returned to positive growth, contributing 5% to the total revenue.
ACV Auctions concluded the second quarter with $273 million in cash and cash equivalents and $110 million in debt. Looking ahead, the company projects its Q3 revenue to fall between $158 million and $162 million, with an adjusted EBITDA between $6 million and $8 million. For the full year, ACV Auctions has raised its revenue guidance midpoint to $615 million to $625 million and adjusted EBITDA guidance to $21 million to $25 million.
InvestingPro Insights
As ACV Auctions Inc. (NASDAQ:ACVA) navigates through a dynamic market environment, the recent share sale by director Robert P. Goodman has drawn attention to the company's financial health and stock performance. Investors considering ACVA's prospects may find the following InvestingPro insights particularly valuable.
ACVA's market capitalization stands at approximately $3.1 billion, reflecting the value the market currently places on the company. Despite the challenges of being unprofitable over the last twelve months, ACVA holds more cash than debt on its balance sheet, which is a positive sign for long-term financial stability. Moreover, the company's net income is expected to grow this year, as analysts anticipate sales growth in the current year. This optimism is further supported by four analysts who have revised their earnings expectations upwards for the upcoming period.
From a valuation standpoint, ACVA's Price to Earnings (P/E) ratio is at -38.77, and when adjusted for the last twelve months as of Q2 2024, it stands at -40.94. Although negative P/E ratios can raise concerns, they are often found in companies that are in their growth phase or have significant investment for future growth. The Price to Book (P/B) ratio is also high at 6.76, suggesting that the stock is trading at a premium compared to the company's book value.
Investors should note that ACVA's stock price has experienced a large uptick over the last six months, with a total return of 29.95%. This performance indicates strong market confidence and could be a signal for potential investors looking for growth opportunities. However, it's essential to consider the stock's volatility, as ACVA's price movements have been quite volatile, which could impact short-term investment decisions.
For those seeking more in-depth analysis, InvestingPro offers additional insights. There are 11 more InvestingPro Tips available for ACVA at https://www.investing.com/pro/ACVA, which can provide further guidance on the company's financial health and stock performance.
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