ACV Auctions (NYSE:ACVA) Shares Gap Up - What's Next?

Key Points

• Shares gapped up ~23.7%, opening at $6.17 after the prior close of $5.22 with about 1.9 million shares trading, giving ACV Auctions a market cap near $1.12 billion.
• The recent quarter missed on EPS (reported -$0.11 vs. -$0.01 expected) although revenue beat slightly at $183.65 million (+15.2% YoY); the company remains unprofitable and analysts forecast ~-0.19 EPS for the year.
• Analyst coverage is mixed—MarketBeat shows a consensus of "Moderate Buy" with an average target of $10.45 amid several upgrades/downgrades—while CEO George Chamoun bought 24,272 shares at $5.05, boosting insider ownership.

ACV Auctions Inc. (NYSE:ACVA - Get Free Report)'s share price gapped up before the market opened on Thursday . The stock had previously closed at $5.22, but opened at $6.17. ACV Auctions shares last traded at $6.0470, with a volume of 1,900,108 shares.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on ACVA shares. B. Riley Financial lowered their price target 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. Wall Street Zen raised shares of ACV Auctions from a "sell" rating to a "hold" rating in a research note on Sunday, February 1st. Royal Bank Of Canada upgraded ACV Auctions to an "outperform" rating in a research note on Tuesday, February 24th. Barrington Research raised ACV Auctions from a "market perform" rating to an "outperform" rating in a report on Tuesday, February 24th. Finally, Citigroup downgraded ACV Auctions from a "buy" rating to a "neutral" rating and lowered their price target for the stock from $13.00 to $7.00 in a research report on Tuesday, February 24th. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, ACV Auctions currently has a consensus rating of "Moderate Buy" and an average target price of $10.45.

ACV Auctions Stock Up 23.7%

The firm has a market cap of $1.12 billion, a price-to-earnings ratio of -17.00 and a beta of 1.78. The business has a fifty day simple moving average of $4.82 and a 200 day simple moving average of $6.77. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.60 and a quick ratio of 1.60.

ACV Auctions (NYSE:ACVA - Get Free Report) last issued its quarterly earnings results on Monday, February 23rd. The company reported ($0.11) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.10). The firm had revenue of $183.65 million during the quarter, compared to analyst estimates of $181.96 million. ACV Auctions had a negative return on equity of 6.17% and a negative net margin of 8.71%.The business's revenue was up 15.2% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.16) earnings per share. As a group, equities analysts forecast that ACV Auctions Inc. will post -0.19 EPS for the current fiscal year.

Insider Activity

In related news, CEO George Chamoun purchased 24,272 shares of the business's stock in a transaction that occurred on Monday, March 9th. The stock was purchased at an average price of $5.05 per share, with a total value of $122,573.60. Following the completion of the acquisition, the chief executive officer owned 2,952,977 shares in the company, valued at $14,912,533.85. This trade represents a 0.83% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. 2.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Atreides Management LP raised its position in ACV Auctions by 125.2% in the fourth quarter. Atreides Management LP now owns 12,411,800 shares of the company's stock valued at $99,543,000 after purchasing an additional 6,901,010 shares during the period. Wasatch Advisors LP grew its stake in shares of ACV Auctions by 301.0% in the second quarter. Wasatch Advisors LP now owns 7,295,400 shares of the company's stock valued at $118,331,000 after buying an additional 5,475,874 shares in the last quarter. Sunriver Management LLC acquired a new stake in shares of ACV Auctions in the fourth quarter valued at $23,768,000. SG Capital Management LLC purchased a new stake in shares of ACV Auctions in the 3rd quarter valued at $17,103,000. Finally, Arvin Capital Management LP raised its holdings in shares of ACV Auctions by 272.8% in the 4th quarter. Arvin Capital Management LP now owns 2,296,913 shares of the company's stock valued at $18,421,000 after buying an additional 1,680,723 shares during the period. Hedge funds and other institutional investors own 88.55% of the company's stock.

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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