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William Zerella, Chief Financial Officer of ACV Auctions Inc. (NASDAQ:ACVA), has sold 32,500 shares of the company’s Class A common stock. The shares were sold at a weighted average price of $21.65, amounting to a total transaction value of $703,625. Following this transaction, Zerella now holds 490,482 shares in direct ownership.
The sale was conducted under a Rule 10b5-1 trading plan, which Zerella entered into on August 30, 2023. This type of plan allows executives to set up a predetermined schedule for selling company stock to avoid any potential conflicts of interest. The shares were sold in multiple transactions at prices ranging from $21.12 to $21.99. While not currently profitable, InvestingPro data shows strong revenue growth of 29% and analysts expect profitability this year. Track insider transactions and access detailed financial analysis with an InvestingPro subscription.
In addition to the share sale, Zerella also exercised options to acquire 25,000 shares of Class A common stock, which were converted from Class B common stock. The options were exercised at a price of $5.42 per share. The company maintains a strong balance sheet with more cash than debt and healthy liquidity ratios, according to InvestingPro metrics.
In other recent news, ACV Auctions Inc. reported substantial growth in earnings and revenue in the third quarter of 2024. The company's revenue climbed by 44% to a record $171 million, and vehicle sales saw a significant rise of 32% with 198,000 units sold. Adjusted EBITDA surpassed expectations, coming in at $11 million, exceeding guidance by 38%. These impressive 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, increasing the price target to $28. They predict the company will benefit from an expanding total addressable market as it moves into commercial auction supply. Similarly, Citi analysts have maintained a Buy rating, raising the stock's price target from $22.00 to $27.00, acknowledging ACV Auctions' growing market share.
In addition, ACV Auctions' new offerings, including ClearCar, ACV Max, and Self-Inspection, are gaining traction, particularly as Commercial Wholesale grows. Despite potential seasonal dips and post-hurricane impacts, analysts remain confident in ACV Auctions' ability to increase transaction share and expand margins in the foreseeable future. These recent developments reflect the company's strategic moves and its response to favorable market conditions.
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