According to a recent filing with the Securities and Exchange Commission, Michael Waterman, chief sales officer of ACV Auctions Inc. (NASDAQ:ACVA), sold 75,000 shares of the company’s stock. The shares were sold on September 17, 2024, at an average price of $20.24, for a total net proceeds of approximately $1.5 million.
These transactions were made in a series of deals ranging in value from $20.00 to $20.48 per share. These sales were made under a trading plan set forth in Rule 10b5-1, which allows insiders within a company to prepare a predetermined plan to sell shares at a specific time.
In addition to the sales, the SEC filing disclosed that on the same day, Waterman also acquired 75,000 shares of ACV Auctions Class A common stock through the exercise of options. However, no cash transaction occurred during this acquisition as it involved the exercise of an option with a conversion or exercise price of $0.06, as explained in the footnotes to the SEC filing.
Following these transactions, Waterman’s direct ownership in ACV Auctions Inc. changed, with the CEO now owning a total of 366,710 shares of Class A common stock after the sale. The filing also corrected a previous administrative error, stating that 400 shares previously reported as Class A shares were actually Class B shares.
ACV Auctions Inc. investors and stakeholders often monitor the buying and selling of insiders, as they can provide insights into an executive’s view of the company’s current valuation and future prospects. Details of these transactions are publicly disclosed to ensure transparency and provide information relevant to investment decisions made by market participants.
In other recent news, ACV Auctions Inc. reported a staggering 29% year-over-year increase in revenue for the second quarter of 2024, reaching a record $161 million. The company also saw a 22% year-over-year increase in vehicle sales, selling 187,000 vehicles. A massive 65% year-over-year increase in adjusted EBITDA puts the company on track to achieve its first full year of adjusted EBITDA. Here are some recent developments in the online car market.
ACV Auctions also reported 33% year-over-year growth in auction and insurance revenue, contributing 57% of total revenue. The company’s marketplace services revenue, which includes ACV Transport and ACV Capital, grew 30% year-over-year. Software-as-a-service (SaaS) and data services products also returned to positive growth, accounting for 5% of total revenue.
Looking ahead, ACV Auctions expects third-quarter revenue to be in the range of $158 million to $162 million, with adjusted EBITDA of $6 million to $8 million. The full-year revenue midpoint guidance has been raised to $615 million to $625 million, with adjusted EBITDA of $21 million to $25 million. Despite the company’s cautious stance on the wholesale dealer market recovery, it remains optimistic about its future performance.
InvestingPro Insights
As ACV Auctions Inc. (NASDAQ:ACVA) continues its financial journey, recent insider transactions by Michael Waterman have caught the attention of market participants. To provide more context to these transactions, InvestingPro’s data and tips offer additional insights into the company’s financial health and future prospects.
InvestingPro data reveals that ACVA is currently trading at a high P/B multiple of 7.52, indicating that the stock is valued at a premium to its book value as of the trailing twelve months ending Q2 2024. Despite not making profits over the past year, analysts are bullish, as evidenced by net income expected to grow this year, providing a positive signal to investors regarding the company’s earnings potential.
Furthermore, ACVA’s revenue growth is strong, with a 21.57% increase in the past twelve months as of Q2 2024, and an even more impressive quarterly revenue growth of 29.31% in Q2 2024. This growth trajectory is confirmed by InvestingPro’s advice that analysts are expecting sales to grow in the current year, underscoring the company’s expanding presence in the market.
On the liquidity front, ACVA has a strong position, with liquid assets exceeding short-term liabilities. This is a reassuring sign for investors concerned about the company’s ability to meet its immediate financial obligations. Additionally, it is worth noting that ACVA holds more cash than debt on its balance sheet, providing a cushion for operational flexibility and potential investments.
For those interested in further analysis and insights, additional InvestingPro tips are available at https://www.investing.com/pro/ACVA, which delve deeper into ACVA’s financial metrics and market performance. These tips can serve as a valuable resource for investors seeking to make informed decisions about ACV Auctions Inc.
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