ACV Auctions (NYSE:ACVA) Releases Earnings Results, Misses Expectations By $0.10 EPS

Key Points

• ACV Auctions missed quarterly earnings expectations: The company reported a loss of $0.05 per share versus analysts’ expected profit of $0.05, while revenue of $213.94 million came in slightly below the $214.93 million estimate.
• Shares fell 2.9% to $7.24 following the results. ACV Auctions continues to report negative profitability metrics, including a 7.97% net margin and a 5.52% negative return on equity.
• Analyst sentiment remains moderately bullish: The stock has a consensus “Moderate Buy” rating and a $10.23 average price target, while institutional investors own 88.55% of outstanding shares.

ACV Auctions (NYSE:ACVA - Get Free Report) posted its earnings results on Monday. The company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.05 by ($0.10), FiscalAI reports. ACV Auctions had a negative return on equity of 5.52% and a negative net margin of 7.97%.The business had revenue of $213.94 million for the quarter, compared to analyst estimates of $214.93 million.

ACV Auctions Stock Down 2.9%

Shares of NYSE:ACVA traded down $0.22 during midday trading on Monday, reaching $7.24. The company had a trading volume of 7,029,561 shares, compared to its average volume of 3,221,773. The stock has a market capitalization of $1.26 billion, a P/E ratio of -20.69 and a beta of 1.82. The stock's fifty day moving average price is $6.99 and its 200-day moving average price is $6.19. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.47 and a quick ratio of 1.47. ACV Auctions has a one year low of $4.07 and a one year high of $13.90.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Stephens raised shares of ACV Auctions to a "hold" rating in a research report on Monday, June 1st. Barrington Research upgraded shares of ACV Auctions from a "hold" rating to a "strong-buy" rating in a report on Monday, August 3rd. Barclays upped their price target on shares of ACV Auctions from $7.00 to $8.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 22nd. Finally, Weiss Ratings raised ACV Auctions from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday. Two analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $10.23.

Institutional Investors Weigh In On ACV Auctions

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd grew its stake in ACV Auctions by 2,573.8% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,770 shares of the company's stock worth $30,000 after purchasing an additional 3,629 shares in the last quarter. Los Angeles Capital Management LLC acquired a new stake in ACV Auctions during the fourth quarter valued at approximately $57,000. Focus Partners Advisor Solutions LLC bought a new position in ACV Auctions during the 4th quarter worth approximately $83,000. Stifel Financial Corp bought a new position in ACV Auctions during the 4th quarter worth approximately $85,000. Finally, Abel Hall LLC acquired a new position in shares of ACV Auctions in the 4th quarter worth approximately $87,000. Institutional investors own 88.55% of the company's stock.

ACV Auctions Company Profile

ACV Auctions operates a digital marketplace designed to streamline the wholesale used-vehicle auction process for independent dealerships and larger automotive groups. The platform enables dealers to participate in live, online auctions, submit real-time bids, and access guaranteed-sale programs that reduce the risk of inventory moving. By replicating the dynamics of in-lane bidding in a virtual environment, ACV Auctions connects sellers and buyers across a broad geographic footprint without the need for physical auction attendance.

In addition to its core marketplace, ACV Auctions offers a suite of software tools and data-driven services aimed at improving transparency and decision-making in the remarketing process.

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