TEMPE, AZ—Daniel J. Gill, the Chief Product Officer of Carvana Co. (NYSE:CVNA), has sold 11,000 shares of the company’s Class A Common Stock, according to a recent SEC filing. The shares were sold at an average price of $250.16, totaling approximately $2.75 million.
The transaction, which took place on November 11, 2024, was executed under a Rule 10b5-1 trading plan that Gill adopted on June 14, 2023. After this sale, Gill holds 236,267 shares directly.
The sale was executed in multiple trades with prices ranging from $250.00 to $250.75. Gill has committed to providing detailed information regarding the number of shares sold at each price upon request from the SEC, Carvana, or its shareholders.
In other recent news, Carvana reported record-breaking third-quarter earnings and revenue results, showing a 34% year-over-year increase in retail units sold, contributing to a 32% surge in revenue. The company's net income reached $148 million, with operating income of $337 million and an adjusted EBITDA of $429 million. The revenue for the quarter hit $3.655 billion. These recent developments highlight the company's ongoing efforts to position itself for sustainable growth and market expansion.
In addition, Morgan Stanley (NYSE:MS) upgraded Carvana's stock rating to Equal-weight from Underweight, following the impressive earnings report. The firm also significantly increased the price target for Carvana's shares to $260.00, up from the previous target of $110.00. The revision reflects a more neutral perspective on the company's stock, moving away from the previous cautious stance.
Furthermore, Carvana plans to increase its advertising spend by $5 million to $10 million in Q4 and anticipates an adjusted EBITDA significantly above the $1.0 billion to $1.2 billion range for the full year 2024. The company also achieved milestones of selling and purchasing over 2 million cars, capturing only 1% of the $1 trillion used car market. However, it's worth noting that the company's non-GAAP SG&A expenses rose 10% to $406 million.
InvestingPro Insights
The recent sale of shares by Carvana's Chief Product Officer comes at a time when the company's stock has shown remarkable performance. According to InvestingPro data, Carvana has delivered an impressive 756.66% return over the past year, with a 113.73% gain in the last six months alone. This strong performance is reflected in the company's current market capitalization of $51.9 billion.
Despite the significant stock price appreciation, InvestingPro Tips suggest that Carvana's valuation metrics are at elevated levels. The company is trading at a high P/E ratio of 1,700, which may indicate that investors have priced in substantial future growth expectations. This is further supported by the fact that Carvana is trading at a high Price / Book multiple of 85.29.
On the operational front, Carvana has shown improvement, with revenue growing by 12.21% over the last twelve months to $12.55 billion. The company's profitability has also turned positive, with a gross profit margin of 20.04% and an operating income margin of 5.54% for the same period.
Investors considering Carvana should note that InvestingPro offers 21 additional tips for this stock, providing a more comprehensive analysis of the company's financial health and market position. These insights can be particularly valuable given the stock's recent volatility and high valuation multiples.
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