ACV Auctions (NASDAQ:ACVA) Hits New 12-Month Low Following Analyst Downgrade

Key Points

• ACV Auctions Inc. (NASDAQ:ACVA) hit a new 52-week low of $10.31 following a downgrade from JMP Securities, which lowered its price target from $20.00 to $18.00.
• Multiple analysts have reduced their price targets for ACVA, with the current consensus rating being a "Moderate Buy" and an average price target of $19.55.
• Insider activity showed significant selling, with two insiders selling a combined total of over 49,000 shares in recent transactions, indicating decreased ownership stakes.

ACV Auctions Inc. (NASDAQ:ACVA - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday after The Goldman Sachs Group lowered their price target on the stock from $26.00 to $21.00. The Goldman Sachs Group currently has a buy rating on the stock. ACV Auctions traded as low as $10.31 and last traded at $11.25, with a volume of 882235 shares changing hands. The stock had previously closed at $13.35.

A number of other equities research analysts have also issued reports on ACVA. Needham & Company LLC cut their target price on ACV Auctions from $25.00 to $16.00 and set a "buy" rating on the stock in a research report on Tuesday. JMP Securities dropped their price target on ACV Auctions from $20.00 to $18.00 and set a "market outperform" rating on the stock in a research note on Tuesday. Citigroup cut their price objective on ACV Auctions from $21.00 to $17.00 and set a "buy" rating on the stock in a report on Tuesday. JPMorgan Chase & Co. decreased their target price on shares of ACV Auctions from $20.00 to $19.00 and set an "overweight" rating for the company in a report on Thursday, July 17th. Finally, Stephens set a $11.50 target price on shares of ACV Auctions and gave the stock an "equal weight" rating in a research report on Tuesday. Two equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $19.67.

Insider Buying and Selling

In related news, insider Michael Waterman sold 34,339 shares of the firm's stock in a transaction that occurred on Tuesday, July 8th. The shares were sold at an average price of $16.05, for a total transaction of $551,140.95. Following the completion of the sale, the insider directly owned 379,957 shares in the company, valued at approximately $6,098,309.85. This trade represents a 8.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Craig Eric Anderson sold 15,000 shares of the business's stock in a transaction that occurred on Tuesday, July 22nd. The shares were sold at an average price of $15.04, for a total transaction of $225,600.00. Following the transaction, the insider directly owned 340,799 shares in the company, valued at $5,125,616.96. The trade was a 4.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ACV Auctions

Hedge funds have recently modified their holdings of the stock. Versant Capital Management Inc boosted its position in ACV Auctions by 464.4% during the first quarter. Versant Capital Management Inc now owns 2,201 shares of the company's stock valued at $31,000 after purchasing an additional 1,811 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S purchased a new stake in shares of ACV Auctions during the 1st quarter worth about $35,000. CWM LLC lifted its holdings in shares of ACV Auctions by 77.4% during the 2nd quarter. CWM LLC now owns 4,642 shares of the company's stock valued at $75,000 after buying an additional 2,026 shares during the last quarter. GAMMA Investing LLC lifted its holdings in shares of ACV Auctions by 3,005.8% during the 1st quarter. GAMMA Investing LLC now owns 5,932 shares of the company's stock valued at $84,000 after buying an additional 5,741 shares during the last quarter. Finally, Neo Ivy Capital Management bought a new stake in shares of ACV Auctions in the 2nd quarter valued at approximately $87,000. 88.55% of the stock is owned by institutional investors and hedge funds.

ACV Auctions Stock Down 1.1%

The stock has a market cap of $1.96 billion, a price-to-earnings ratio of -23.33 and a beta of 1.69. The business has a fifty day moving average of $15.30 and a 200 day moving average of $16.03. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.56 and a quick ratio of 1.56.

ACV Auctions Company Profile

ACV Auctions Inc operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. The company's marketplace platform includes digital marketplace, which connects buyers and sellers by providing online auction, which facilitates real-time transactions of wholesale vehicles; Run List for pre-filtering and pre-screening of vehicles up to 24 hours prior to an auction taking place; ACV transportation service to enable the buyers to see real-time transportation quotes and status reports of the vehicle; ACV capital, a short-term inventory financing services for buyers to purchase vehicles; and Go Green's seller assurance service for against claims related to defects in the vehicle.