BUFFALO, NY—William Zerella, the Chief Financial Officer of ACV Auctions Inc. (NASDAQ:ACVA), recently executed a significant stock sale. According to a recent SEC filing, Zerella sold 32,500 shares of Class A Common Stock on October 15, 2024, at an average price of $18.79 per share, totaling approximately $610,675. This transaction was conducted as part of a pre-established Rule 10b5-1 trading plan.
In addition to the sale, Zerella engaged in several transactions involving stock options. He exercised options to acquire 25,000 shares of Class B Common Stock, which were converted into Class A Common Stock. These transactions, however, did not involve any monetary exchange, as the shares were acquired at a conversion price of $0.
Following these transactions, Zerella's direct ownership in ACV Auctions stands at 490,482 shares of Class A Common Stock. The company's shares are traded on the NASDAQ under the ticker symbol ACVA.
In other recent news, ACV Auctions Inc. has announced significant developments in its operations and financial performance. The company has launched ACV MAX and ClearCar, innovative solutions aimed at enhancing the vehicle acquisition process for dealerships. These tools, powered by AI technology, provide dealers with actionable inventory insights and time-saving automation capabilities. The launch is part of ACV's ongoing efforts to transform the automotive industry through transparency and comprehensive insights.
On the financial front, ACV Auctions reported a 29% year-over-year increase in revenue, totaling $161 million, and a 22% rise in vehicle sales, with 187,000 vehicles sold. The company's future expectations include a Q3 revenue in the range of $158 million to $162 million and adjusted EBITDA in the range of $6 million to $8 million.
Financial services firm Raymond James initiated coverage on ACV Auctions, assigning a Market Perform rating to the company's shares. This rating acknowledges the company's ability to effectively manage current challenges within the automotive sector. These are some of the recent developments at ACV Auctions Inc.
InvestingPro Insights
To provide additional context to William Zerella's recent stock transactions, let's examine some key financial metrics and insights for ACV Auctions Inc. (NASDAQ:ACVA).
According to InvestingPro data, ACV Auctions has a market capitalization of $3.21 billion as of the latest available information. The company's revenue growth has been robust, with a 21.57% increase over the last twelve months as of Q2 2024, reaching $543.7 million. This growth trend is even more pronounced in the quarterly figures, with a 29.31% revenue growth reported in Q2 2024.
Despite the strong top-line performance, it's worth noting that ACV Auctions is currently not profitable. The company reported an operating income of -$84.65 million over the last twelve months, resulting in an operating income margin of -15.57%. This aligns with an InvestingPro Tip indicating that the company has not been profitable over the last twelve months.
However, there are positive signals for investors to consider. An InvestingPro Tip highlights that analysts anticipate sales growth in the current year, which is consistent with the company's recent revenue performance. Additionally, another tip suggests that net income is expected to grow this year, potentially signaling a move towards profitability.
The stock's performance has been noteworthy, with a 30.4% price total return over the past year. This positive momentum is reflected in the stock trading at 90.95% of its 52-week high, indicating strong investor confidence.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for ACV Auctions, providing a more comprehensive view of the company's financial health and market position.
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