Carvana Co. (NYSE:CVNA) CEO Ernest Garcia III has recently sold a significant portion of his holdings in the company, according to a new SEC filing. The transactions, which took place on May 2, 2024, involved the sale of company stock totaling over $2.1 million.
The CEO sold shares at prices ranging from $114.34 to $117.64. Specifically, the transactions were executed in multiple trades, with 1,100 shares sold at an average price of $114.34, 4,746 shares at an average of $115.46, 9,254 shares at an average of $116.42, and 3,000 shares at an average of $117.64. These sales were made to cover taxes related to the vesting of restricted stock units under various awards.
Despite these sales, Garcia remains a significant holder of Carvana stock. According to the filing, after the transactions, he directly owned 896,449 shares of Class A Common Stock. Additionally, he has indirect ownership through trusts, with 950,000 shares held by the Ernest C. Garcia III Multi-Generational Trust III and 850,000 shares by the Ernest Irrevocable 2004 Trust III, over which he has shared voting and dispositive power.
The sales come after a vesting event of restricted stock units granted under the CEO's Performance Restricted Stock Unit Award Agreement with Carvana dated February 22, 2023. The performance conditions of the agreement were met, leading to the vesting of 53,091 units on May 1, 2024.
Investors often monitor insider transactions such as these for insights into executive confidence and company performance. With Carvana being a major player in the online car retail space, such moves by top executives are closely watched.
InvestingPro Insights
Following the recent insider transactions by Carvana Co. (NYSE:CVNA) CEO Ernest Garcia III, investors are keenly observing the company's financial health and market performance. According to InvestingPro data, Carvana has seen a remarkable 1 Year Price Total Return of 1589.86% as of Q1 2024, reflecting a significant investor return over the past year. Moreover, the company's stock is trading near its 52-week high, with a Price % of 52 Week High at 97.96%. This could indicate strong market confidence in the company's prospects or potential overvaluation, a detail that might interest shareholders and potential investors alike.
Despite the impressive returns, the InvestingPro Tips suggest that Carvana's stock may be in overbought territory, as indicated by the RSI metrics. This could imply that the stock's recent performance might see a correction in the near future. Additionally, Carvana is trading at a high Price / Book multiple of 84.51, which is considerably above industry averages, suggesting that the market is pricing in high expectations for the company's asset value or future growth.
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