Carvana Co (CVNA, Financial), an e-commerce platform for buying and selling used cars, has reported an insider sell according to the latest SEC filings. Chief Product Officer Daniel Gill sold 10,335 shares of the company on April 2, 2024. The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission.
Carvana Co offers a user-friendly platform that allows customers to quickly and easily buy, sell, and trade-in used cars. The company is known for its multi-story car vending machines and provides a unique end-to-end online car buying experience.
According to the filing, the shares were sold at a price of $82.85 per share, resulting in a total transaction value of $856,243.25. Following this transaction, the insider's stake in Carvana Co has decreased, reflecting a change in the insider's investment in the company.
Over the past year, Daniel Gill has sold a total of 10,335 shares of Carvana Co and has not made any purchases of the stock. This latest sell adds to a series of insider transactions that have taken place at the company.
Insider Trends
The insider transaction history for Carvana Co shows a pattern of insider activity. Over the past year, there have been 2 insider buys and 17 insider sells. This trend provides insight into the sentiment of company insiders, with more insiders choosing to sell shares than to buy.
Valuation
On the day of the insider's recent sell, shares of Carvana Co were trading at $82.85, giving the company a market capitalization of $9.602 billion. The price-earnings ratio of the stock stands at 196.19, which is significantly higher than the industry median of 16.345 and also above the company's historical median price-earnings ratio.
Comparing the current share price to the GuruFocus Value, Carvana Co appears to be Significantly Overvalued. The stock's price-to-GF-Value ratio is 3.11, with a GF Value of $26.65, indicating that the market price is substantially higher than the estimated intrinsic value according to GuruFocus's valuation model.
The GF Value is determined by considering historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates provided by Morningstar analysts.
Investors and analysts often monitor insider selling as it can provide insights into an insider's perspective on the value of the company's stock. While a single insider sell may not be indicative of the company's future performance, a trend of insider selling, as seen with Carvana Co, could signal caution to potential investors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
