BUFFALO, NY—Robert P. Goodman, a director at ACV Auctions Inc. (NASDAQ:ACVA), reported several stock transactions involving the company's Class A Common Stock, according to a recent SEC filing.
On November 21, 2024, Goodman, through entities Bessemer Venture Partners IX L.P. (BVP IX), Bessemer Venture Partners IX Institutional L.P. (BVP IX Inst), and 15 Angels III LLC, sold a significant number of shares. The transactions included the sale of 473,966 shares at a weighted average price of $21.78, with the shares trading in a range from $21.13 to $22.13. Additionally, on the same day, 7,188 shares were sold at an average of $22.19, with prices ranging from $22.14 to $22.22.
Further transactions occurred on November 22, 2024, with the sale of 465,000 shares at an average price of $21.93, within a price range of $21.56 to $22.15.
On November 25, 2024, Goodman executed two more sales. The first involved 894,453 shares at an average price of $22.93, with prices ranging from $22.40 to $23.40. The second sale consisted of 8,644 shares at an average price of $23.43, with prices between $23.41 and $23.45.
Following these transactions, Goodman holds shares through various entities, including NB Group, LLC and Katama Point LLC, although he disclaims beneficial ownership except to the extent of his pecuniary interest. As of the filing, Goodman retains direct ownership of 375,219 shares, with additional shares held indirectly.
In other recent news, ACV Auctions Inc. reported a record revenue of $171 million in the third quarter of 2024, a 44% increase from the previous year. Vehicle sales experienced a 32% rise with 198,000 units sold, and adjusted EBITDA surpassed expectations by reaching $11 million. The company's executives raised the full-year revenue guidance to between $630 million and $634 million.
These are part of the recent developments in the company. The firm's strategic focuses include growth, innovation, scaling, and entering new markets, with ACV Transportation and ACV Capital performing strongly. ACV Auctions expects dealer wholesale volumes to remain flat in 2024, but still aims for adjusted EBITDA profitability.
For the fourth quarter of 2024, the company projects revenue between $152 million and $156 million, and adjusted EBITDA between $2 million and $4 million. Despite challenges such as hurricanes impacting Q4 revenue and EBITDA estimates, the company continues to invest in technology to improve the commercial consignor experience and enhance vehicle inspections. ACV Auctions remains committed to market share expansion and product differentiation, targeting midterm goals.
InvestingPro Insights
ACV Auctions Inc. (NASDAQ:ACVA) has been experiencing significant stock movements, as evidenced by the recent insider transactions. To provide additional context to these sales, let's examine some key financial metrics and insights from InvestingPro.
According to InvestingPro data, ACV Auctions has a market capitalization of $3.85 billion USD, reflecting its substantial presence in the automotive auction market. The company's revenue for the last twelve months as of Q3 2024 stood at $596.02 million USD, with an impressive revenue growth of 29.34% over the same period. This growth trajectory aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year.
Despite the positive revenue outlook, it's worth noting that ACV Auctions is not currently profitable, with an operating income margin of -13.32% for the last twelve months. However, an InvestingPro Tip suggests that analysts predict the company will be profitable this year, which could explain the recent insider selling as the company approaches a potential financial turning point.
The stock's recent performance has been strong, with a 30.75% price return over the past month and a 19.09% return over the last three months. This upward momentum has pushed the stock price to 97.87% of its 52-week high, indicating that it's trading near its peak levels. An InvestingPro Tip cautions that the stock's RSI suggests it may be in overbought territory, which could provide context for the director's decision to sell shares.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for ACV Auctions, providing a deeper understanding of the company's financial health and market position.
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