ACV Auctions (NYSE:ACVA) Trading Down 6.9% - Here's Why

Key Points

• ACV Auctions shares fell 6.9% to approximately $7.48 in midday trading, with volume below the stock’s average session volume.
• Analyst sentiment is mixed but leans cautious: the consensus rating is “Hold” with an average price target of $10.23, while recent actions included a downgrade to “Market Perform” and a reiterated “Sell” rating.
• Institutional investors have generally increased their holdings, and hedge funds and other institutions own 88.55% of the company. ACV Auctions has a market capitalization of about $1.29 billion and trades below profitability, with a negative P/E ratio of -21.16.

ACV Auctions Inc. (NYSE:ACVA - Get Free Report) shares dropped 6.9% on Friday . The company traded as low as $7.46 and last traded at $7.4750. 2,334,118 shares traded hands during mid-day trading, a decline of 27% from the average session volume of 3,215,715 shares. The stock had previously closed at $8.03.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on ACVA. Weiss Ratings reiterated a "sell (e+)" rating on shares of ACV Auctions in a report on Wednesday, June 24th. Stephens raised ACV Auctions to a "hold" rating in a research report on Monday, June 1st. Barclays lifted their price objective on ACV Auctions from $7.00 to $8.00 and gave the stock an "equal weight" rating in a report on Wednesday, July 22nd. Finally, Barrington Research downgraded ACV Auctions from an "outperform" rating to a "market perform" rating and set a $7.00 target price on the stock. in a research report on Monday, June 1st. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, ACV Auctions has an average rating of "Hold" and an average price target of $10.23.

ACV Auctions Trading Down 7.8%

The stock has a 50-day moving average price of $6.80 and a 200-day moving average price of $6.24. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.47 and a current ratio of 1.47. The stock has a market cap of $1.29 billion, a P/E ratio of -21.16 and a beta of 1.82.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Atreides Management LP raised its position in ACV Auctions by 125.2% in the 4th quarter. Atreides Management LP now owns 12,411,800 shares of the company's stock worth $99,543,000 after purchasing an additional 6,901,010 shares during the period. Wasatch Advisors LP grew its position in shares of ACV Auctions by 301.0% in the 2nd quarter. Wasatch Advisors LP now owns 7,295,400 shares of the company's stock worth $118,331,000 after buying an additional 5,475,874 shares during the last quarter. Alliancebernstein L.P. increased its position in ACV Auctions by 14.1% during the 3rd quarter. Alliancebernstein L.P. now owns 6,332,313 shares of the company's stock valued at $62,753,000 after purchasing an additional 784,411 shares during the period. Jennison Associates LLC increased its position in shares of ACV Auctions by 1.5% during the fourth quarter. Jennison Associates LLC now owns 5,766,578 shares of the company's stock valued at $46,248,000 after buying an additional 87,959 shares during the period. Finally, State Street Corp raised its position in shares of ACV Auctions by 3.2% in the 4th quarter. State Street Corp now owns 3,853,014 shares of the company's stock worth $30,901,000 after acquiring an additional 119,079 shares in the last quarter. 88.55% of the stock is owned by hedge funds and other institutional investors.

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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