Paul Breaux, Vice President, General Counsel, and Secretary at Carvana Co. (NYSE:CVNA), recently executed several stock transactions, including significant sales of the company's Class A Common Stock. According to a recent SEC filing, Breaux sold a total of 30,000 shares on October 31, 2024, with prices ranging from $237.31 to $241.51 per share. These sales amounted to a total of approximately $7.2 million.
In addition to the sales, Breaux also exercised stock options to acquire 30,000 shares at a price of $10.07 per share, translating to a total of $302,100. These transactions were conducted under a pre-arranged 10b5-1 trading plan adopted on June 9, 2023.
Furthermore, shares were withheld for tax purposes upon the vesting of restricted stock units, resulting in a total transaction value of $1,349,752, with prices ranging from $207.31 to $229.08 per share. Following these transactions, Breaux holds a total of 134,408 shares in Carvana.
These transactions reflect Breaux's ongoing involvement and financial activities within Carvana, a company known for its online platform for buying and selling used cars.
In other recent news, Carvana, the online used car retailer, reported record-setting earnings for Q3 2024. The company saw a 34% increase in the number of retail units sold, contributing to a 32% surge in revenue, reaching $3.655 billion. Carvana's net income was $148 million, with an operating income of $337 million and an adjusted EBITDA of $429 million. The company's future plans include an increased advertising spend of $5 to $10 million in Q4 and the integration of ADESA assets to enhance efficiency. However, an employee cash bonus of $10 million will impact Q4 adjusted EBITDA. Carvana also repurchased $100 million of its 2028 senior secured notes, improving leverage ratios. The company's future projections show adjusted EBITDA significantly above the $1.0 billion to $1.2 billion range for the full year 2024. These recent developments show Carvana's strategic focus on operational excellence and growth.
InvestingPro Insights
As Paul Breaux, a key executive at Carvana Co. (NYSE:CVNA), engages in significant stock transactions, it's worth examining the company's current financial position and market performance. According to InvestingPro data, Carvana's market capitalization stands at an impressive $52.23 billion, reflecting strong investor confidence in the online used car retailer.
The company's recent financial performance has been noteworthy. InvestingPro Tips highlight that Carvana has achieved profitability over the last twelve months, with analysts predicting continued profitability this year. This aligns with the company's revenue growth of 12.21% in the last twelve months, reaching $12.55 billion.
Carvana's stock has shown remarkable momentum, with InvestingPro data revealing a staggering 781.42% price total return over the past year. This exceptional performance is further underscored by the stock trading at 88.31% of its 52-week high, suggesting continued investor optimism.
However, potential investors should note that the stock is trading at high valuation multiples. The P/E ratio stands at 1,600, indicating that the market has priced in significant growth expectations. This high valuation is also reflected in the company's Price to Book ratio of 81.65.
For those interested in a deeper analysis, InvestingPro offers 20 additional tips for Carvana, providing a comprehensive view of the company's financial health and market position. These insights can be particularly valuable given the recent insider transactions and the company's dynamic market performance.
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