TEMPE, Ariz.—Daniel J. Gill, the Chief Product Officer at Carvana Co. (NYSE:CVNA), executed several stock transactions reported in a recent SEC filing. On October 31 and November 1, Gill sold a total of 39,012 shares of Carvana's Class A common stock, amounting to approximately $10.8 million. The shares were sold at prices ranging from $235.90 to $247.31 per share.
In addition to the sales, Gill also had transactions related to restricted stock units. On October 30, he acquired 19,879 shares at no cost. However, he disposed of 10,899 shares at prices between $207.31 and $229.08 to cover tax obligations on vested restricted stock units.
Following these transactions, Gill's direct ownership of Carvana shares stands at 247,267.
In other recent news, Carvana, the online used car retailer, has reported record-setting Q3 earnings in 2024. The company experienced a 34% year-over-year increase in retail units sold, pushing revenue up by 32%. Key financial indicators include a net income of $148 million, operating income of $337 million, and an adjusted EBITDA of $429 million for the quarter. In light of these developments, Carvana plans to increase its advertising spend by $5 million to $10 million in Q4. The company also anticipates continued growth, with projected adjusted EBITDA significantly above the $1.0 billion to $1.2 billion range for the full year 2024. Furthermore, Carvana is integrating ADESA assets to enhance operational efficiency. However, it's worth noting that non-GAAP SG&A expenses rose by 10% to $406 million. These are all recent developments in the company's performance and strategic direction.
InvestingPro Insights
The recent stock transactions by Carvana's Chief Product Officer, Daniel J. Gill, come at a time when the company's stock has shown remarkable performance. According to InvestingPro data, Carvana has experienced a staggering 781.42% price total return over the past year, with a 163.04% return in just the last six months. This impressive rally aligns with the high selling prices of $235.90 to $247.31 per share reported in Gill's transactions.
InvestingPro Tips highlight that Carvana has a perfect Piotroski Score of 9, indicating strong financial health. This could explain the confidence in the company's prospects, despite the insider selling. Additionally, analysts anticipate sales growth in the current year, which may contribute to the stock's positive momentum.
However, investors should note that Carvana is trading at high valuation multiples. The company's P/E ratio stands at 1,600, and its Price to Book ratio is 81.65, suggesting the stock may be priced at a premium. An InvestingPro Tip also indicates that the RSI suggests the stock is in overbought territory, which could warrant caution for potential investors.
For those seeking a more comprehensive analysis, InvestingPro offers 20 additional tips on Carvana, providing deeper insights into the company's financial position and market performance.
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