Carvana Co. (NYSE:CVNA) Chief Operating Officer, Benjamin E. Huston, has sold a total of $770,820 worth of the company’s stock, as revealed in a recent SEC filing. The transactions, which took place on April 2, 2024, involved shares of Carvana’s Class A Common Stock and were executed within a price range of $82.75 to $83.48.
The sales were conducted in multiple trades, with the COO disposing of shares to cover taxes related to the vesting of restricted stock units. According to the filing, the largest portion of the sale comprised 8,650 shares sold at an average price of $82.89. Another portion included 500 shares that were sold at an average price of $83.48, while a smaller transaction of 146 shares was executed at a price of $82.75.
Following these transactions, Huston still retains a substantial holding of 178,885 shares in the company, indicating a continued investment in Carvana’s future. The sales were part of a routine financial planning strategy commonly adopted by executives and are disclosed to the public in compliance with SEC regulations.
Investors often monitor insider transactions as they can provide insights into executives’ perspectives on the company’s valuation and prospects. Carvana, known for its innovative online car buying and selling platform, has been a notable player in the retail automotive sector.
The company's stock performance and the actions of its executives are closely watched by market participants seeking to understand the dynamics within the automotive industry and the broader retail sector.
InvestingPro Insights
As Carvana Co. (NYSE:CVNA) continues to navigate the retail automotive market, recent insider transactions have drawn attention to the company's stock performance. The Chief Operating Officer's sale of company stock comes at a time when Carvana's stock has experienced significant volatility. According to InvestingPro Tips, the stock has taken a considerable hit over the last week, with a one-week price total return showing a decrease of 8.76%. This aligns with the broader trend of high price volatility that the stock generally trades with.
Despite the recent price movements, Carvana is trading at a low P/E ratio relative to near-term earnings growth, with a PEG Ratio for the last twelve months as of Q4 2023 at 0.2, suggesting potential for investors looking at growth adjusted for price. Additionally, the company's liquid assets exceed short-term obligations, which could provide some financial stability in the near term.
Investors considering Carvana will find that the company does not pay dividends, a factor that might influence investment decisions for those seeking regular income. With these considerations in mind, the broader context of Carvana's market capitalization stands at 16.81 billion USD, and the company has reported a gross profit margin of 16.01% for the last twelve months as of Q4 2023.
For those looking to delve deeper into Carvana’s financial health and market position, more InvestingPro Tips are available on InvestingPro. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to a total of 17 additional tips that could further inform your investment strategy.
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