Carvana CEO Garcia sells $2.48 million in Class A common stock

Carvana Co. (NYSE:CVNA), the online used car retailer with a market capitalization of $77.88 billion, saw Chief Executive Officer Ernest Garcia III, through trusts, sell a total of $2.48 million worth of Class A Common Stock on August 5, 2025. The sales occurred at prices ranging from $346.70 to $361.05. According to InvestingPro analysis, the stock has delivered an impressive 178% return over the past year, though it currently trades at a rich P/E ratio of 83.

The transactions involved sales from two trusts: the Ernest Irrevocable 2004 Trust III and the Ernest C. Garcia III Multi-Generational Trust III.

Specifically, 4,073 shares were sold indirectly. These sales were executed pursuant to a Rule 10b5-1 trading plan adopted by Garcia on December 13, 2024.

Following these transactions, the Ernest Irrevocable 2004 Trust III holds 577,900 shares, the Ernest C. Garcia III Multi-Generational Trust III holds 677,900 and Garcia directly holds 923,155 shares of Carvana Co. Class A Common Stock. The company maintains a "GOOD" financial health score according to InvestingPro’s comprehensive analysis, which includes detailed metrics in its Pro Research Report, available to subscribers.

In other recent news, Carvana has reported strong second-quarter 2025 results, which have significantly exceeded expectations. The online used car retailer’s adjusted EBITDA came in at $601 million, surpassing both JPMorgan’s estimate of $530 million and the Bloomberg consensus of $551 million. Revenue and EBITDA also exceeded consensus expectations by 6% and 9%, respectively, as noted by JMP Securities. Following these results, several analyst firms have adjusted their price targets for Carvana. Needham raised its price target to $500 from $340, maintaining a Buy rating, citing Carvana as a standout growth story in a fragmented industry. JPMorgan increased its price target to $415 from $350, maintaining an Overweight rating. BTIG also raised its price target to $450 from $395, highlighting strong retail gross profit per unit and per unit operations expense. Additionally, JMP Securities increased its price target to $460 from $440, maintaining a Market Outperform rating. DA Davidson raised its price target to $380 from $260, while maintaining a Neutral rating, emphasizing Carvana’s year-over-year growth in used vehicle units.

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