Mark W. Jenkins, the Chief Financial Officer of Carvana Co. (NYSE:CVNA), has recently sold a significant amount of company stock, according to the latest filings with the Securities and Exchange Commission. The transactions, which took place on June 3, 2024, totaled over $496,000.
The sales were conducted under a prearranged 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for selling stocks at a time when they are not in possession of material non-public information. This plan had been adopted by Jenkins on December 15, 2023.
Jenkins sold a total of 4,700 shares through various transactions, with prices ranging from $98.36 to $103.67. The trades were executed in multiple batches, and the reported prices represent the volume-weighted average sale price for the shares.
The largest batch of shares sold amounted to 2,553, with the volume-weighted average sale price being $98.36. Other notable transactions included the sale of 1,440 shares at an average price of $99.06, and smaller batches of 307, 200, 400, and 100 shares at average prices of $99.93, $101.53, $102.90, and $103.67 respectively.
Prior to these sales, Jenkins also disposed of 971 shares on June 1, 2024, at a price of $99.98 per share, totaling $97,080. This transaction was related to the withholding of shares for taxes upon the vesting of restricted stock units.
Following these transactions, Jenkins's ownership in Carvana stock has been adjusted to reflect the reduced number of shares. Investors and market watchers often look to insider sales as a signal of an executive's view on the company's future prospects, although such sales can also be motivated by personal financial management reasons.
Carvana Co., headquartered in Tempe, Arizona, operates in the retail automotive industry, offering an e-commerce platform for buying and selling used cars. The company has been a notable player in transforming the traditional car buying experience by providing customers with an online car buying and financing platform.
Investors can access full details of the transactions upon request to the SEC, the issuer, or a security holder of the issuer, as Jenkins has undertaken to provide full information regarding the number of shares sold at each price.
The sales come at a time when insiders' movements are closely monitored for insights into company performance and executive confidence.
InvestingPro Insights
As Carvana Co. (NYSE:CVNA) makes headlines with the recent insider sales by CFO Mark W. Jenkins, investors are keenly observing the company's financial health and stock performance. In light of this event, several metrics and InvestingPro Tips provide a broader context for evaluating Carvana's current market position.
One of the key InvestingPro Tips highlights that analysts have revised their earnings upwards for the upcoming period, indicating a potential positive outlook for the company's financial future. Additionally, Carvana is trading at a low P/E ratio relative to near-term earnings growth, suggesting that the stock could be undervalued based on its earnings trajectory.
From a data standpoint, Carvana's market cap stands at $20.67 billion USD, reflecting its significant presence in the retail automotive industry. Despite a revenue growth of -11.7% over the last twelve months as of Q1 2024, the company experienced a quarterly revenue growth of 17.46% in Q1 2024, showing signs of a potential turnaround. Moreover, the stock has demonstrated high price volatility, with a six-month price total return of 152.31%, underscoring the stock's dynamic nature in the market.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available for Carvana, which can be accessed through InvestingPro's platform. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to gain further insights into Carvana's performance and stock valuation.
As Carvana continues to navigate the competitive landscape of the automotive industry, these InvestingPro Insights offer valuable information for investors considering the company's stock amidst the recent insider trading activity.
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