ACV Auctions (NYSE:ACVA) Sets New 12-Month Low - Here's Why

Key Points

• ACV Auctions hit a new 52-week low, trading as low as $4.07 (last $4.3270) amid a negative P/E (-11.46) and market cap of ~$758M; the company reported an EPS miss of ($0.11) vs. ($0.01) estimate while revenue grew 15.2% year-over-year.
• Analyst sentiment is mixed-but-positive with a consensus rating of "Moderate Buy" and a $10.45 consensus target; several firms recently upgraded the stock while B. Riley trimmed its target to $16.
• Insiders and institutions are active: CEO George Chamoun bought 24,272 shares at $5.05, insiders own 2.90% of shares, and institutional/hedge funds hold roughly 88.55% after several funds increased positions.

ACV Auctions Inc. (NYSE:ACVA - Get Free Report) reached a new 52-week low on Wednesday . The company traded as low as $4.07 and last traded at $4.3270, with a volume of 1229516 shares traded. The stock had previously closed at $4.24.

Analysts Set New Price Targets

A number of brokerages have issued reports on ACVA. Royal Bank Of Canada raised ACV Auctions to an "outperform" rating in a research note on Tuesday, February 24th. Barrington Research raised shares of ACV Auctions from a "market perform" rating to an "outperform" rating in a research report on Tuesday, February 24th. Wall Street Zen raised shares of ACV Auctions from a "sell" rating to a "hold" rating in a report on Sunday, February 1st. CJS Securities upgraded shares of ACV Auctions to a "strong-buy" rating in a research report on Thursday, December 11th. Finally, B. Riley Financial decreased their target price on shares of ACV Auctions from $17.00 to $16.00 and set a "buy" rating on the stock in a report on Tuesday, February 24th. Two equities research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $10.45.

ACV Auctions Stock Performance

The company has a debt-to-equity ratio of 0.44, a current ratio of 1.60 and a quick ratio of 1.60. The company has a market cap of $758.08 million, a price-to-earnings ratio of -11.46 and a beta of 1.69. The firm has a 50 day simple moving average of $6.04 and a 200-day simple moving average of $7.59.

ACV Auctions (NYSE:ACVA - Get Free Report) last announced its quarterly earnings results on Monday, February 23rd. The company reported ($0.11) EPS for the quarter, missing the consensus estimate of ($0.01) by ($0.10). The business had revenue of $183.65 million during the quarter, compared to analyst estimates of $181.96 million. ACV Auctions had a negative net margin of 8.71% and a negative return on equity of 6.17%. The business's revenue for the quarter was up 15.2% on a year-over-year basis. During the same period last year, the company earned ($0.16) EPS.

Insiders Place Their Bets

In related news, CEO George Chamoun purchased 24,272 shares of the company's stock in a transaction on Monday, March 9th. The stock was acquired at an average cost of $5.05 per share, for a total transaction of $122,573.60. Following the completion of the transaction, the chief executive officer directly owned 2,952,977 shares in the company, valued at approximately $14,912,533.85. The trade was a 0.83% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. 2.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On ACV Auctions

Several large investors have recently made changes to their positions in the stock. Riverbridge Partners LLC boosted its holdings in ACV Auctions by 18.6% in the third quarter. Riverbridge Partners LLC now owns 3,567,434 shares of the company's stock valued at $35,353,000 after purchasing an additional 560,697 shares during the period. Iridian Asset Management LLC CT raised its position in ACV Auctions by 52.7% in the 3rd quarter. Iridian Asset Management LLC CT now owns 1,880,851 shares of the company's stock valued at $18,639,000 after purchasing an additional 649,358 shares in the last quarter. William Blair Investment Management LLC boosted its stake in shares of ACV Auctions by 3.3% in the 3rd quarter. William Blair Investment Management LLC now owns 11,471,709 shares of the company's stock valued at $113,685,000 after buying an additional 362,003 shares during the period. Swedbank AB boosted its stake in shares of ACV Auctions by 50.0% in the 3rd quarter. Swedbank AB now owns 1,500,000 shares of the company's stock valued at $14,865,000 after buying an additional 500,000 shares during the period. Finally, Campbell & CO Investment Adviser LLC grew its position in shares of ACV Auctions by 1,030.4% during the third quarter. Campbell & CO Investment Adviser LLC now owns 131,203 shares of the company's stock worth $1,300,000 after buying an additional 119,596 shares in the last quarter. 88.55% of the stock is currently owned by institutional investors and hedge funds.

About ACV Auctions

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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