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BUFFALO, NY—William Zerella, the Chief Financial Officer of ACV Auctions Inc. (NASDAQ:ACVA), recently sold 15,000 shares of the company's Class A common stock. The shares were sold at a weighted average price of $20.57, resulting in a total transaction value of $308,550. The transaction comes as the company's stock has shown strong momentum, with a 46% gain over the past year and trading near its 52-week high of $23.46.
The sale was conducted on January 7, 2025, as part of a pre-established Rule 10b5-1 trading plan that Zerella entered into on September 9, 2024. Following this transaction, Zerella retains ownership of 462,452 shares in the company.
The trading plan allows executives to sell a predetermined number of shares at a predetermined time, providing a systematic approach to stock sales that can help avoid potential insider trading issues.
ACV Auctions, headquartered in Buffalo, New York, operates an online platform for automotive dealers to buy and sell vehicles through live auctions. The company, currently valued at $3.5 billion, has demonstrated strong revenue growth of 29% in the last twelve months, though according to InvestingPro Fair Value analysis, the stock appears to be trading above its fair value.
In other recent news, ACV Auctions Inc. experienced significant growth, as evidenced by its third-quarter earnings and revenue results. The company reported a 44% increase in revenue, reaching a record $171 million, along with a 32% rise in vehicle sales, selling 198,000 units. Adjusted EBITDA surpassed expectations, coming in at $11 million, exceeding guidance by 38%. These robust results led to an upward revision of the full-year revenue guidance to between $630 million and $634 million.
Needham analysts have reiterated a Buy rating on ACV Auctions stock, increasing the price target to $28 from the previous $26, reflecting the company's durable growth potential. This new target is the highest among analysts covering the stock. Similarly, Citi has upgraded the stock's price target from $22.00 to $27.00, maintaining a Buy rating, following ACV Auctions' strong performance.
ACV Auctions' recent developments include new offerings such as ClearCar, ACV Max, and Self-Inspection, which are gaining traction, especially as Commercial Wholesale grows. Analysts from both Needham and Citi remain confident in ACV Auctions' ability to increase transaction share and expand margins in the foreseeable future, despite potential seasonal dips and post-hurricane impacts.
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