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In a recent transaction, George Chamoun, CEO of ACV Auctions, Inc. (NASDAQ:ACVA), sold a large amount of his company's stock totaling over $6 million. The sale occurred over a series of dates and the price per share fluctuated.
On March 19, 2024, Shamon sold 124,999 shares of Class A common stock at a weighted average price of $18.42. This sale was part of multiple trades with prices ranging from his $18.16 to $18.58. Following this sale, Mr. Chamoun's ownership in the Company decreased to 597,921 shares of Class A common stock.
The next day, March 20th, the CEO sold another 77,198 shares, this time at a weighted average price of $18.73, with individual sale prices ranging from $18.33 to $18.99. Trading continued on March 21st, when Chamon sold 120,062 shares at a weighted average price of $19.14, with individual trade prices ranging from $18.83 to $19.31.
These sales were made pursuant to a Rule 10b5-1 trading plan entered into by Chamoun on September 15, 2023. These plans allow company insiders to sell stock at predetermined times to avoid accusations of insider trading.
It is important to note that the reported transactions reflect only sales of non-derivative securities. There were also transactions involving derivative securities, specifically Class B common stock that were converted into Class A common stock. However, these conversions do not affect the total amount of sales reported.
ACV Auctions Inc. is a Buffalo, New York-based business services company specializing in digital automotive marketplaces. The company has expanded its activities in the automotive sector and provides a platform for car auctions between dealers.
Investors often monitor insider transactions as it can give them an idea of management's view of a company's value. However, executives often sell stocks for personal financial planning purposes, regardless of the company's prospects for future performance.
According to the prices provided, the total amount of non-derivative securities sold by Chamoun amounted to $6,046,386. This number gives investors a clear indication of the size of the transaction by his ACV Auctions Inc. CEO.
Investment Pro Insights
As ACV Auctions Inc. (NASDAQ:ACVA) weathers the economic cycle, recent insider moves for the company's stock have caught the market's attention. To provide additional context to these trades, we turn to insights from InvestingPro. The company's market capitalization is currently approximately $3.12 billion, reflecting its position within the Digital Automotive Market industry. Despite the negative price-to-earnings ratio (P/E) of around -40.89, indicating profitability challenges, there are also signs of optimism regarding future growth.
According to InvestingPro Tips, ACV Auctions is expected to increase its net income this year. This may suggest that insider trading does not necessarily reflect a negative outlook on a company's financial health. Additionally, analysts are forecasting revenue growth for the current fiscal year, which could be a driving force behind the company's valuation and the CEO's decision to sell stock at this time.
From a trading perspective, ACV Auctions has seen significant returns over various time periods, including an increase of 36.0% in the last month and a return of 45.34% over the past year. The stock is currently trading near its 52-week high, which is 98.5% of this all-time high. These metrics provide a snapshot of the company's recent share price performance, and may be of interest to investors considering the timing and potential impact of insider sales.
For those looking to learn more about ACV Auction's financials and stock performance, InvestingPro offers a comprehensive set of additional tips. There are currently 16 more InvestingPro Tips for ACVA, available at https://www.investing.com/pro/ACVA. Investors interested in taking advantage of this information can use coupon codes. pro news 24 Enhance your investment strategy with an extra 10% off annual or biennial Pro and Pro+ subscriptions.
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