TEMPE, Ariz.—Mark W. Jenkins, the Chief Financial Officer of Carvana Co. (NYSE:CVNA), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Jenkins sold a total of 39,158 shares of Carvana's Class A common stock over two days.
The sales were executed on November 8 and November 11, with Jenkins selling 20,000 shares at an average price of $245.26 and an additional 19,158 shares at an average price of $250.38. The transactions amounted to a total value of approximately $9.9 million.
Following these sales, Jenkins retains ownership of 150,732 shares in Carvana. The transactions were conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks.
In addition to the sales, Jenkins exercised options to acquire 40,000 shares of Class A common stock on November 12. These option exercises were executed at no cost, as indicated in the filing.
In other recent news, Carvana Co. experienced significant developments. The company reported an impressive third-quarter performance, with a 34% year-over-year increase in retail units sold, contributing to a 32% surge in revenue. The quarter's revenue hit $3.655 billion, with net income reaching $148 million, operating income of $337 million, and an adjusted EBITDA of $429 million.
Morgan Stanley (NYSE:MS) upgraded Carvana's stock rating to Equal-weight, following the strong earnings report. The firm also increased Carvana's price target to $260.00, up from the previous $110.00, indicating confidence in the company's financial performance and market position.
In addition, Carvana is focusing on operational excellence, growth drivers, and integrating ADESA assets for enhanced efficiency. The company plans to increase its advertising spend by $5 million to $10 million in Q4 and projects an adjusted EBITDA significantly above the $1.0 billion to $1.2 billion range for the full year 2024. These recent developments highlight Carvana's ongoing efforts to position itself for sustainable growth and market expansion.
InvestingPro Insights
Carvana's recent stock performance and financial metrics provide additional context to CFO Mark W. Jenkins' recent stock transactions. According to InvestingPro data, Carvana's stock has shown remarkable strength, with a 756.66% price return over the past year and a 372.35% return year-to-date. This impressive rally has pushed the stock to 95.13% of its 52-week high, suggesting strong investor confidence.
The company's financial health appears to be improving, with InvestingPro Tips indicating that Carvana has a perfect Piotroski Score of 9, signaling strong operational efficiency and financial stability. Additionally, the tip that liquid assets exceed short-term obligations suggests a solid liquidity position, which may have influenced the timing of Jenkins' stock sales.
However, investors should note that Carvana is trading at high valuation multiples. The company's P/E ratio stands at 1,700, and it's trading at a high Price/Book multiple of 85.29. These elevated valuations could explain why insiders like Jenkins might consider realizing gains at current price levels.
For those seeking a deeper understanding of Carvana's financial position and market outlook, InvestingPro offers 21 additional tips, providing a comprehensive analysis for informed investment decisions.
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