In a series of transactions, Ernest Garcia II, a major shareholder of Carvana Co. (NYSE:CVNA), sold a significant amount of stock in the online auto retailer. The total value of the shares sold amounts to over 13 million dollars, with prices between 107.09 and 112.38 dollars.
The sales, which occurred on June 18 and 20, involved multiple trades in which Garcia sold shares at varying prices. On June 18, the weighted average prices of shares sold ranged from $108.03 to $111.65. A couple of days later, on June 20, trades were executed at weighted average prices between $106.58 and $112.66.
This divestment comes at a time when Carvana Co. shares are under the watchful eye of investors. Garcia, who has been associated with the company in a significant way, executed these sales through a preordained trading plan under Rule 10b5-1, a tool often used by company insiders to sell their shares without facing prosecution of trading in non-public information.
The shares sold were Class A common stock, and following the transaction, Garcia still holds a substantial number of Carvana Co. shares directly and indirectly through various trusts and entities. The filing showed that Verde Investments, Inc, wholly owned and controlled by Garcia, continues to hold a significant number of Class A shares. Additionally, trusts owned by Garcia have been established to sell Class A shares. Additionally , trusts benefiting Garcia’s family and entities controlled by him hold Class A and B common stock, as well as Class A units that can be exchanged for Class A stock under certain conditions.
Investors often keep an eye on insider transactions, as they can provide valuable insights into the company’s prospects and the level of confidence of its key stakeholders. Garcia’s recent transactions are likely to be no exception as market participants weigh the implications for Carvana’s future.
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