ACV Auctions director Goodman oversees stock transactions

ACV Auctions Inc. (NASDAQ:ACVA) has reported a series of stock transactions by director Robert P. Goodman, according to a recent SEC filing. The document reveals a mix of sales over a three-day period, with a total of 289,522 shares of Class A common stock sold on August 22, 341,973 shares on August 23, and 364,131 shares on August 24.

On August 22, shares were sold at prices ranging from $18.25 to $18.88, averaging $18.52 per share. The following day, shares were sold at prices between $18.32 and $18.95, with an average of $18.69 per share. Sales on August 24 saw shares going for $19.00 to $19.85, averaging $19.46 per share.

These transactions were carried out indirectly through Bessemer Venture Partners IX L.P., Bessemer Venture Partners IX Institutional L.P., and 15 Angels III LLC, with Goodman disclaiming beneficial ownership of these securities, except to the extent of his pecuniary interest. Goodman is a director of the entities that control these funds.

The filing also noted conversions of Class B common stock to Class A common stock, but no financial details were provided for these transactions. Goodman also indicated that he has an indirect interest in the shares held by NB Group, LLC, and Katama Point LLC, but again disclaimed beneficial ownership except for his pecuniary interest.

Investors monitoring ACV Auctions' insider activities may find these developments noteworthy as they represent a substantial amount of stock changing hands within the company's leadership structure.

In other recent news, ACV Auctions demonstrated a robust financial performance in the second quarter of 2024. The online automotive marketplace reported a 29% year-over-year increase in revenue, totaling $161 million, alongside a 22% surge in vehicle sales, resulting in 187,000 vehicles sold. A noteworthy 65% sequential rise in adjusted EBITDA sets the company on track for potential profitability in this area.

ACV Auctions also reported growth in auction and assurance revenue and marketplace services revenue, which rose by 33% and 30% year-over-year respectively. The firm ended the quarter with $273 million in cash and cash equivalents and $110 million in debt. Looking forward, the company projects third-quarter revenue to be between $158 million and $162 million, with adjusted EBITDA ranging from $6 million to $8 million.

Despite the impact of a slowdown in new and used car sales from CDK, ACV Auctions remains optimistic about its performance and growth strategy. The company is focused on driving top-line growth, expanding margins, and creating long-term shareholder value. These recent developments indicate a positive outlook for ACV Auctions.

InvestingPro Insights

Amidst the flurry of stock transactions by ACV Auctions Inc. (NASDAQ:ACVA) director Robert P. Goodman, investors are closely observing the company's financial health and market performance. According to InvestingPro data, ACV Auctions currently holds a market capitalization of approximately $3.21 billion. The company's revenue growth has been robust, with a 21.57% increase over the last twelve months as of Q2 2024, and an even more impressive quarterly revenue growth of 29.31% in Q2 2024.

Despite not having turned a profit over the last twelve months, analysts are optimistic about ACV Auctions' future, predicting that the company will become profitable this year. This sentiment is reflected in the actions of four analysts who have revised their earnings estimates upwards for the upcoming period. Additionally, ACV Auctions boasts a strong liquidity position, with liquid assets exceeding short-term obligations and a balance sheet that holds more cash than debt.

InvestingPro Tips for ACV Auctions indicate that while the stock price has experienced significant volatility, the company is trading at a high revenue valuation multiple and a high Price / Book multiple of 7.02. This could suggest a premium valuation by the market based on the company's growth prospects and underlying assets. It's also noteworthy that ACV Auctions does not pay a dividend to shareholders, which may be a consideration for income-focused investors.

For those interested in a deeper dive into ACV Auctions' financial metrics and potential investment opportunities, InvestingPro offers additional insights and tips. Currently, there are 10 more InvestingPro Tips available for ACV Auctions at https://www.investing.com/pro/ACVA, which can provide investors with a comprehensive understanding of the company's financial position and future outlook.

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