Royce & Associates LP Boosts Position in ACV Auctions Inc. $ACVA

Key Points

• Royce & Associates LP raised its stake in ACV Auctions by 62.6% in Q3 to 718,392 shares (~$7.12M), and several other large funds (notably Wasatch Advisors) also materially increased holdings, leaving 88.55% institutional ownership.
• ACV missed EPS estimates (reported ($0.11) vs. ($0.01) expected) while revenue beat at $183.65M (+15.2% YoY); the stock trades around $5.48 with a market cap of about $954M and remains unprofitable (negative margins and ROE).
• CEO George Chamoun bought 14,286 shares at $8.81, raising his stake to 2,598,383 shares, and analysts show mixed views but an overall "Moderate Buy" consensus with an average price target of $11.32.

Royce & Associates LP grew its stake in shares of ACV Auctions Inc. (NASDAQ:ACVA - Free Report) by 62.6% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 718,392 shares of the company's stock after buying an additional 276,591 shares during the period. Royce & Associates LP owned 0.42% of ACV Auctions worth $7,119,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of ACVA. Wasatch Advisors LP increased its holdings in ACV Auctions by 301.0% during the 2nd quarter. Wasatch Advisors LP now owns 7,295,400 shares of the company's stock worth $118,331,000 after acquiring an additional 5,475,874 shares during the period. SG Capital Management LLC purchased a new position in shares of ACV Auctions during the 3rd quarter valued at $17,103,000. Senvest Management LLC increased its holdings in shares of ACV Auctions by 144.8% in the second quarter. Senvest Management LLC now owns 1,689,290 shares of the company's stock worth $27,400,000 after purchasing an additional 999,290 shares during the period. Iridian Asset Management LLC CT increased its holdings in shares of ACV Auctions by 52.7% in the third quarter. Iridian Asset Management LLC CT now owns 1,880,851 shares of the company's stock worth $18,639,000 after purchasing an additional 649,358 shares during the period. Finally, Riverbridge Partners LLC raised its position in shares of ACV Auctions by 18.6% in the third quarter. Riverbridge Partners LLC now owns 3,567,434 shares of the company's stock worth $35,353,000 after buying an additional 560,697 shares in the last quarter. 88.55% of the stock is currently owned by institutional investors.

ACV Auctions Stock Down 1.1%

Shares of NASDAQ ACVA opened at $5.48 on Thursday. ACV Auctions Inc. has a one year low of $4.45 and a one year high of $17.54. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.56 and a quick ratio of 1.56. The firm's 50 day simple moving average is $7.47 and its two-hundred day simple moving average is $8.49. The stock has a market capitalization of $953.91 million, a P/E ratio of -11.18 and a beta of 1.63.

ACV Auctions (NASDAQ:ACVA - Get Free Report) last announced its quarterly earnings data on Monday, February 23rd. The company reported ($0.11) earnings per share for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.10). ACV Auctions had a negative return on equity of 12.94% and a negative net margin of 12.51%.The business had revenue of $183.65 million during the quarter, compared to the consensus estimate of $181.96 million. During the same quarter in the previous year, the firm posted ($0.16) earnings per share. The company's revenue was up 15.2% compared to the same quarter last year. As a group, analysts expect that ACV Auctions Inc. will post -0.07 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO George Chamoun acquired 14,286 shares of the firm's stock in a transaction dated Monday, January 12th. The shares were purchased at an average price of $8.81 per share, for a total transaction of $125,859.66. Following the completion of the acquisition, the chief executive officer owned 2,598,383 shares in the company, valued at approximately $22,891,754.23. This represents a 0.55% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. 2.90% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

ACVA has been the subject of several recent analyst reports. Bank of America restated an "underperform" rating and set a $6.00 target price (down from $16.50) on shares of ACV Auctions in a research report on Thursday, November 6th. Royal Bank Of Canada raised ACV Auctions to an "outperform" rating in a report on Tuesday, February 24th. Jefferies Financial Group downgraded shares of ACV Auctions from a "buy" rating to a "hold" rating and set a $9.00 target price on the stock. in a research note on Thursday, December 11th. JPMorgan Chase & Co. dropped their target price on shares of ACV Auctions from $18.00 to $11.00 and set an "overweight" rating for the company in a research report on Thursday, November 6th. Finally, Barclays decreased their price target on shares of ACV Auctions from $8.00 to $7.00 and set an "equal weight" rating on the stock in a report on Monday. Eight investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $11.32.

About ACV Auctions

ACV Auctions operates a digital marketplace that connects automotive dealers through a mobile-first platform for wholesale vehicle auctions. The company's software enables dealers to list, inspect and bid on used vehicles in real time, leveraging smartphone-based condition reporting, high-resolution imagery and data analytics to streamline the buying and selling process. ACV Auctions also offers subscription-based access to its auction platform, supplemental reconditioning services and financing tools designed to help dealers optimize inventory turn and reduce risk.

Since its founding in 2014, ACV Auctions has expanded its technology offerings beyond core auction services to include dealer management integrations, transportation logistics coordination and title management solutions.

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