Carvana Co. (NYSE:CVNA) Chief Financial Officer Mark W. Jenkins has sold a significant portion of his company stock, totaling over $6.8 million. The transactions, which took place on May 1 and 2, 2024, were carried out under a pre-arranged Rule 10b5-1 trading plan.
Jenkins sold a total of 47,000 shares at prices ranging from $82.62 to $90.49, amounting to approximately $4.7 million. The following day, he continued with the sale of 19,000 shares at higher prices between $115.54 and $117.66, bringing in an additional $2.1 million. These sales were executed in multiple trades, and the prices reported reflect the volume-weighted average sale price for each batch of shares.
In addition to the sales, Jenkins exercised options to acquire 50,000 shares of Class A Common Stock at an exercise price of $10.07 per share. This transaction added a total of $503,500 to the total value of executed trades. It's important to note that the options were part of a non-qualified stock option grant that vested 25% on April 1, 2024, with the remainder vesting monthly over the following three years, contingent on Jenkins's ongoing service with Carvana.
The sales come following the vesting of restricted stock units (RSUs) granted under the 2023 Performance Restricted Stock Unit Award Agreement. The performance condition under the agreement was met, and all RSUs vested on May 1, 2024. The vested RSUs accounted for an additional 52,663 shares at zero cost.
These transactions have resulted in a substantial change in Jenkins's holdings in Carvana, with his ownership in Class A Common Stock decreasing significantly. However, following these transactions, Jenkins still holds a substantial number of shares in the company, reflecting his ongoing stake in Carvana's future.
Investors and interested parties can find further details on the sales and the prices at which shares were sold upon request to the SEC staff, Carvana, or a security holder of the company. The executed sales and option exercises are common practices for executives managing their investment portfolios and are often scheduled in advance through automated trading plans.
Carvana, known for its e-commerce platform for buying and selling used cars, continues to navigate the dynamic automotive retail market with its innovative approach to car buying.
InvestingPro Insights
Carvana Co. (NYSE:CVNA) has experienced a noteworthy period in the market, with several metrics indicating significant movement in its stock. According to InvestingPro data, Carvana's market capitalization stands at $24.83 billion. The company has a P/E ratio of 21.15, which may seem attractive to investors considering near-term earnings growth. However, the adjusted P/E ratio for the last twelve months as of Q1 2024 is -32.84, reflecting expectations of a downturn in net income for the year. This aligns with one of the InvestingPro Tips that analysts do not anticipate the company will be profitable this year.
Despite the challenges, Carvana's stock has shown a strong return over the last week, with a 44.31% price total return. This level of performance is consistent with the InvestingPro Tip highlighting the significant return over the last week and aligns with the stock's general behavior, which tends to trade with high price volatility. Additionally, the stock is trading near its 52-week high, at 97.96% of this peak, suggesting a large price uptick over the last six months.
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