Carvana CEO Garcia’s trusts sell $1m+ in shares

Ernest Garcia, Chief Executive Officer of Carvana Co. (NASDAQ:CVNA), indirectly through trusts, sold shares of the company’s Class A Common Stock on October 9, 2025. The sales amounted to a total value of $1,022,937. The transaction comes as Carvana, currently valued at $72.2 billion, trades near $329 per share. According to InvestingPro analysis, the stock appears fairly valued based on its comprehensive Fair Value model.

The transactions involved sales by the Ernest Irrevocable 2004 Trust III and the Ernest C. Garcia III Multi-Generational Trust III. The sales were executed at prices ranging from $348.44 to $362.00.

Specifically, the trusts disposed of shares in multiple transactions. 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 and the Ernest C. Garcia III Multi-Generational Trust III continue to hold shares in Carvana. Garcia also directly holds 920,696 shares of Carvana. The company maintains strong financial health, with InvestingPro reporting a "GOOD" overall financial health score and a current ratio of 4.0, indicating solid liquidity. For deeper insights into Carvana’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Carvana’s corporate family rating has been upgraded by Moody’s to B2 from B3, with a positive outlook, reflecting improvements in operating performance and voluntary debt reduction. This upgrade also applies to the company’s senior secured and unsecured global notes. Meanwhile, Jefferies has upgraded Carvana’s stock rating to Buy, citing the company’s advantageous position in the shift towards digital platforms in the used car market. BTIG has reiterated its Buy rating and maintained a $450 price target, despite concerns about the company’s financing activities and credit exposure. Additionally, JPMorgan has increased its price target for Carvana to $425, maintaining an Overweight rating, following strong second-quarter results. Citizens JMP has also reiterated a Market Outperform rating with a $460 price target, highlighting favorable industry trends. These developments reflect a mix of positive and cautious sentiment among analysts regarding Carvana’s current and future business prospects.

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