Market Data 
Michael Waterman, the Chief Sales Officer of ACV Auctions Inc. (NASDAQ:ACVA), has sold 75,000 shares of company stock, according to a recent filing with the Securities and Exchange Commission. The shares were sold on September 17, 2024, for an average price of $20.24, netting a total of approximately $1.5 million.
The transactions occurred in a series of trades ranging from $20.00 to $20.48 per share. These sales were made under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a specified time.
In addition to the sales, the SEC filing revealed that on the same day, Waterman also acquired 75,000 shares of Class A Common Stock of ACV Auctions through the exercise of options. However, no monetary transaction took place during this acquisition as it was an option exercise with a conversion or exercise price of $0.06, as indicated in the footnotes of the SEC filing.
Following these transactions, Waterman’s direct ownership in ACV Auctions Inc. has changed, with the executive now holding a total of 366,710 shares of Class A Common Stock post-sale. The filing also corrected a previous administrative error, noting that 400 shares previously reported as Class A shares are in fact Class B shares.
Investors and stakeholders in ACV Auctions Inc. often monitor insider sales and purchases as they can provide insights into an executive’s perspective on the company’s current valuation and future prospects. The details of these transactions are publicly disclosed to ensure transparency and provide information relevant to market participants’ investment decisions.
In other recent news, ACV Auctions Inc. has reported an impressive 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 significant 65% sequential increase in adjusted EBITDA has set the company on track to potentially achieve its first year of adjusted EBITDA profitability. These are some of the recent developments at the online automotive marketplace.
ACV Auctions has also reported a 33% year-over-year growth in auction and assurance revenue, contributing to 57% of the total revenue. The company’s marketplace services revenue, which includes ACV Transport and ACV Capital, grew by 30% year-over-year. Software as a Service (SaaS) and data services products have returned to positive growth, accounting for 5% of the total revenue.
Looking ahead, ACV Auctions expects third-quarter revenue to be between $158 million and $162 million, with adjusted EBITDA between $6 million and $8 million. The full-year revenue guidance midpoint has been raised to $615 million to $625 million, with adjusted EBITDA guidance of $21 million to $25 million. Despite the company’s cautious stance on the recovery of the dealer wholesale market, it remains optimistic about its performance moving forward.
InvestingPro Insights
As ACV Auctions Inc. (NASDAQ:ACVA) navigates through its financial journey, the recent insider transactions by Michael Waterman have caught the attention of market participants. To provide further context to these transactions, InvestingPro data and tips offer additional insights into the company’s financial health and future outlook.
InvestingPro data reveals that ACVA is currently trading at a high Price / Book multiple of 7.52, which suggests that the stock is valued at a premium compared to its book value as of the last twelve months ending Q2 2024. Despite not being profitable over the past year, analysts are optimistic, as indicated by the net income expected to grow this year, providing a positive signal to investors regarding the company’s earning potential.
Moreover, ACVA’s revenue growth is robust, with a 21.57% increase in the last twelve months as of Q2 2024, and an even more impressive quarterly revenue growth of 29.31% in Q2 2024. This growth trajectory is corroborated by an InvestingPro Tip that analysts anticipate sales growth in the current year, emphasizing the company’s expanding market presence.
On the liquidity front, ACVA holds a strong position, with liquid assets surpassing short-term obligations. This is a reassuring sign for investors concerned about the company’s ability to meet its immediate financial commitments. Additionally, it’s 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, there are additional InvestingPro Tips available at 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 regarding ACV Auctions Inc.
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