ACV Auctions (NYSE:ACVA) Sees Large Volume Increase - Still a Buy?

Key Points

• ACV Auctions’ trading volume surged 122% to approximately 10.2 million shares, while the stock traded near $10.45.
• Analyst sentiment has weakened, with multiple downgrades; the stock carries a consensus “Hold” rating and a $9.70 price target, below its recent trading level.
• Institutional investors own a substantial 88.55% of shares, while several hedge funds recently increased their positions. ACV’s shares remain above their 50-day and 200-day moving averages despite negative earnings and a high beta of 1.84.

ACV Auctions Inc. (NYSE:ACVA - Get Free Report) shares saw unusually-high trading volume on Tuesday. Approximately 10,216,637 shares traded hands during mid-day trading, an increase of 122% from the previous session's volume of 4,592,714 shares. The stock last traded at $10.4450 and had previously closed at $10.46.

Analyst Upgrades and Downgrades

ACVA has been the subject of several recent analyst reports. Weiss Ratings raised shares of ACV Auctions from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, August 5th. Bank of America restated an "underperform" rating on shares of ACV Auctions in a research report on Tuesday, August 11th. Northcoast Research downgraded ACV Auctions from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 22nd. Citizens Jmp downgraded ACV Auctions from an "outperform" rating to a "market perform" rating in a research note on Tuesday, August 11th. Finally, Barclays downgraded shares of ACV Auctions from an "equal weight" rating to an "underweight" rating and set a $8.00 price target for the company. in a research report on Tuesday, August 11th. Five equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $9.70.

ACV Auctions Price Performance

The company has a debt-to-equity ratio of 0.53, a current ratio of 1.52 and a quick ratio of 1.52. The firm has a market capitalization of $1.77 billion, a PE ratio of -28.99 and a beta of 1.84. The company has a 50-day moving average price of $8.21 and a 200-day moving average price of $6.61.

Hedge Funds Weigh In On ACV Auctions

A number of institutional investors have recently modified their holdings of the company. Atreides Management LP grew its stake 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 acquiring an additional 6,901,010 shares during the period. Senvest Management LLC boosted its holdings in shares of ACV Auctions by 9.0% during the first quarter. Senvest Management LLC now owns 3,530,785 shares of the company's stock worth $14,971,000 after purchasing an additional 291,729 shares during the last quarter. Arvin Capital Management LP boosted its holdings in shares of ACV Auctions by 272.8% during the fourth quarter. Arvin Capital Management LP now owns 2,296,913 shares of the company's stock worth $18,421,000 after purchasing an additional 1,680,723 shares during the last quarter. CenterBook Partners LP grew its position in shares of ACV Auctions by 61.6% in the fourth quarter. CenterBook Partners LP now owns 917,549 shares of the company's stock valued at $7,359,000 after purchasing an additional 349,750 shares during the period. Finally, 4D Advisors LLC purchased a new stake in shares of ACV Auctions in the fourth quarter valued at $6,015,000. Institutional investors and hedge funds own 88.55% of the company's stock.

About ACV Auctions

ACV Auctions Inc NYSE: ACVA operates a digital marketplace for wholesale vehicle transactions. Its platform connects automotive dealers with sellers, including franchised and independent dealerships, commercial partners and other participants in the wholesale vehicle market, enabling vehicles to be bought and sold through online auctions.

The company provides services designed to support the wholesale transaction process, including vehicle inspections and condition reports, digital auction tools, transportation and logistics coordination, and post-sale protection and arbitration services.

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