ACV Auctions Inc. (NASDAQ:ACVA) VP of Corporate Controller, Andrew Peer, has recently sold a total of 1,795 shares of the company's Class A Common Stock, according to a new filing with the Securities and Exchange Commission. The transactions, which took place on September 19, 2024, were executed at a price of $21.00 per share, resulting in a total sale value of $37,695.
The sale was conducted under a Rule 10b5-1 trading plan, which was established on June 13, 2024. A 10b5-1 plan allows company insiders to set up a predetermined plan to sell company stocks, in order to avoid accusations of insider trading. The filing clarified that all shares were sold at the fixed price of $21.00.
Following the sale, Peer continues to hold 62,956 shares of ACV Auctions Inc. The company, which operates in the business services sector, is incorporated in Delaware and has its headquarters in Buffalo, NY. ACV Auctions Inc. specializes in providing a range of services but is primarily known for its online automotive marketplace that connects dealers and buyers for used vehicles.
Investors and the market often monitor insider transactions, such as sales or purchases of company stock, for insights into the executive's view of the company's prospects. However, such transactions are not necessarily indicative of future stock performance and can be influenced by a variety of factors, including personal financial planning.
The filing did not mention any intention for further stock transactions by Peer. Interested parties have been offered full information regarding the stock sale upon request, as stated in the filing.
In other recent news, ACV Auctions reported a robust financial performance for the second quarter of 2024. The company saw a 29% year-over-year increase in revenue, hitting $161 million, and a 22% year-over-year growth in vehicle sales, with 187,000 vehicles sold. Adjusted EBITDA also increased by 65% sequentially, setting the company on a trajectory towards its first year of adjusted EBITDA profitability.
ACV Auctions is also making strides in other areas, with auction and assurance revenue growing 33% year over year, accounting for 57% of total revenue. Marketplace services revenue, which includes ACV Transport and ACV Capital, grew by 30% year over year. The company ended Q2 with $273 million in cash and cash equivalents and $110 million in debt.
Looking forward, ACV Auctions has raised its full-year revenue guidance midpoint to between $615 million and $625 million, with adjusted EBITDA guidance of $21 million to $25 million. Despite facing challenges from the slowdown in new and used car sales from CDK, which impacted EBITDA and revenue, the company remains optimistic about its performance and growth strategy. These are among the recent developments for ACV Auctions.
InvestingPro Insights
ACV Auctions Inc. (NASDAQ:ACVA) has recently seen a notable insider stock transaction, which can often be a signal to investors about the company's health and future prospects. To provide a broader context, here are some insights based on current data from InvestingPro.
InvestingPro data shows that ACV Auctions Inc. holds a market capitalization of approximately $3.46 billion. Despite a negative P/E ratio of -42.96, indicating that the company has been unprofitable over the last twelve months, analysts are forecasting an uptick in net income and sales growth for the current year. The company's revenue has grown by 21.57% over the last twelve months, and the quarterly growth rate stands at an impressive 29.31%. These figures suggest a positive trajectory in terms of revenue.
ACV Auctions Inc. is also trading near its 52-week high, with the stock price at 98.76% of this peak, reflecting a strong return of 42.22% over the past year. This momentum is supported by the fact that 4 analysts have revised their earnings estimates upwards for the upcoming period, as per InvestingPro Tips.
Another InvestingPro Tip points out that ACV Auctions Inc. has more cash than debt on its balance sheet, which provides financial flexibility and may reassure investors about the company's ability to manage its short-term obligations, especially since its liquid assets exceed its short-term liabilities.
For those interested in further insights and analytics, InvestingPro offers additional tips on ACVA. Currently, there are 13 more InvestingPro Tips available, which can be accessed to help investors make more informed decisions.
It is important to note that while insider transactions can provide valuable hints, they are not the sole indicators of a company's performance or stock potential. Investors should consider a comprehensive set of factors, including the ones mentioned above, when evaluating their investment decisions.
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