Craig Eric Anderson, the Chief Customer and Digital Strategy Officer at ACV Auctions Inc. (NASDAQ:ACVA), recently sold a substantial number of shares in the company. According to a recent SEC filing, Anderson sold 240,563 shares of Class A Common Stock at a weighted average price of $22.28 per share. This transaction, conducted under a pre-established Rule 10b5-1 trading plan, amounted to a total value of approximately $5.36 million. The sale comes as ACVA shares have gained nearly 41% year-to-date, with the stock trading near its 52-week high of $23.46.
The filing also detailed several other transactions by Anderson, including the acquisition of shares through the conversion of Class B Common Stock and the exercise of employee stock options. However, these transactions did not involve any monetary exchange and were primarily aimed at restructuring his holdings.
Following these transactions, Anderson's direct ownership stands at 258,546 shares. The activity highlights a significant change in his investment in the company, although the reasons behind the sales were not disclosed in the filing.
In other recent news, ACV Auctions Inc. has been experiencing robust growth, as evidenced by its third-quarter results for 2024. The company reported a 44% increase in revenue, reaching a record $171 million. Vehicle sales also saw a significant rise of 32%, with 198,000 units sold. ACV Auctions exceeded expectations with its adjusted EBITDA, coming in at $11 million, surpassing guidance by 38%. These recent developments led the company to raise its full-year revenue guidance to between $630 million and $634 million.
Citi has updated its valuation model for ACV Auctions, setting a new price target at $27.00, up from the previous $22.00, and maintaining a Buy rating on the stock. This adjustment follows ACV Auctions' significant increase in Auction Marketplace Units Sold and improved conversion rates. Citi also highlighted the positive reception of ACV Auctions' new offerings, such as ClearCar, ACV Max, and Self-Inspection, which are gaining traction in the market.
Despite potential seasonal dips and the impact of recent hurricanes on the fourth quarter's revenue and EBITDA estimates, both ACV Auctions and Citi remain confident in the company's ability to increase transaction share and expand margins in the foreseeable future.
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