BUFFALO, NY—Michael Waterman, the Chief Sales Officer of ACV Auctions Inc. (NASDAQ:ACVA), recently executed a significant stock transaction, according to a filing with the Securities and Exchange Commission. On November 12, Waterman sold 21,483 shares of the company's Class A Common Stock at a weighted average price of $20.91 per share, totaling approximately $449,209. This sale was conducted under a pre-arranged Rule 10b5-1 trading plan established on February 28, 2024.
Following this transaction, Waterman holds 337,190 shares of ACV Auctions' Class A Common Stock. In addition to the sale, Waterman exercised options to acquire 21,483 shares of Class B Common Stock, which are convertible into Class A shares, at a nominal exercise price. These transactions reflect Waterman's ongoing management of his equity holdings in the company.
In other recent news, ACV Auctions Inc. reported a significant rise in revenue and vehicle sales in the third quarter of 2024. The company's revenue reached a record $171 million, a 44% increase year-over-year, and vehicle sales saw a 32% hike with 198,000 units sold. The company's adjusted EBITDA also surpassed expectations, coming in at $11 million, exceeding guidance by 38%.
Notably, ACV Auctions has raised its full-year revenue guidance to a range of $630 million to $634 million. For the fourth quarter of 2024, the company projects its revenue to be between $152 million and $156 million, with an adjusted EBITDA between $2 million and $4 million. Despite the impact of recent hurricanes and a seasonal decline in conversion rates, the company remains confident in its performance and strategic focuses.
These developments come amidst a strong performance from ACV Transportation and ACV Capital, as well as the company's commitment to market share expansion and product differentiation. The company is also investing in technology to improve the commercial consignor experience and enhance vehicle inspections. However, ACV Auctions anticipates dealer wholesale volumes to remain flat in 2024.
InvestingPro Insights
ACV Auctions Inc. (NASDAQ:ACVA) has been demonstrating strong financial performance, as evidenced by recent InvestingPro data. The company's revenue growth is particularly noteworthy, with a 43.96% increase in quarterly revenue as of Q3 2024. This robust growth aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year.
Despite the recent stock sale by Chief Sales Officer Michael Waterman, ACV Auctions' market position appears solid. The company's market capitalization stands at $3.35 billion, reflecting investor confidence in its business model. An InvestingPro Tip highlights that ACV holds more cash than debt on its balance sheet, suggesting financial stability that could support future growth initiatives.
It's worth noting that while the company is not currently profitable, with an operating income margin of -14.07% over the last twelve months, another InvestingPro Tip predicts that analysts expect the company to turn profitable this year. This potential turnaround could explain why insiders like Waterman might be rebalancing their holdings while maintaining a significant stake in the company's future.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for ACV Auctions, providing deeper insights into the company's financial health and market position.
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