Carvana Co. (NYSE:CVNA) CEO Ernest Garcia III has recently sold a portion of his holdings in the company, according to the latest SEC filings. Garcia parted with a total of 9,390 shares of Carvana's Class A Common Stock, fetching an aggregate sum of approximately $777,763.
The transactions occurred on April 2, 2024, with the sale prices ranging from $82.74 to $82.83 per share. This range represents the volume-weighted average sale price for the shares sold in multiple trades, as detailed in the footnotes of the SEC filing. The CEO has undertaken to provide full information regarding the number of shares sold at each price upon request.
Following the sale, Garcia still holds a substantial number of shares in Carvana, with direct ownership of 861,458 shares. Additionally, he maintains indirect control over significant holdings through the Ernest C. Garcia III Multi-Generational Trust III and the Ernest Irrevocable 2004 Trust III, where he serves as Co-Administrative Trustee and Co-Investment Trustee.
The sale by Garcia comes as a notable transaction considering his role as both director and chief executive officer of the online auto retailer. Investors often keep a close eye on insider transactions as they may provide insight into the executives' perspectives on the company's current valuation and future prospects.
Carvana, known for its online car buying and selling platform, has revolutionized the auto industry with its customer-centric approach and innovative vending machine fulfillment centers. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol CVNA.
InvestingPro Insights
Recent market data from InvestingPro provides a deeper look into Carvana Co.'s (NYSE:CVNA) financial health and stock performance. Despite the CEO's recent sale of shares, Carvana's stock has experienced a remarkable return over the past year, with a 786.98% increase. This surge is part of a broader trend that has seen the stock rise by 115.65% over the last six months, as of Q1 2023.
From a valuation standpoint, Carvana is currently trading at a P/E ratio of 20.16, which may seem high. However, when considering near-term earnings growth, the stock is trading at a low P/E ratio, which could signal a potential undervaluation relative to its growth prospects. This is further supported by the company's PEG ratio of 0.2 for the last twelve months as of Q1 2023, suggesting that the stock's price is modest relative to its expected earnings growth.
InvestingPro Tips highlight that Carvana's stock generally trades with high price volatility, which is consistent with the stock's recent performance. Additionally, analysts have revised their earnings upwards for the upcoming period, indicating a potential positive outlook for the company's financial future. For those seeking additional insights, there are more InvestingPro Tips available for Carvana, providing a comprehensive analysis of the company's performance and projections.
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