ACV Auctions (NASDAQ:ACVA) Shares Gap Up – Here’s Why

ACV Auctions Inc. (NASDAQ:ACVA) gapped up prior to trading on Tuesday . The stock had previously closed at $4.89, but opened at $5.29. ACV Auctions shares last traded at $5.0870, with a volume of 918,039 shares changing hands.

Analyst Upgrades and Downgrades

Several analysts have commented on ACVA shares. Royal Bank Of Canada upgraded shares of ACV Auctions to an “outperform” rating in a research note on Tuesday, February 24th. Needham & Company LLC reissued a “buy” rating and set a $9.00 target price on shares of ACV Auctions in a report on Tuesday, February 24th. The Goldman Sachs Group decreased their target price on shares of ACV Auctions from $13.00 to $10.00 and set a “buy” rating for the company in a research report on Tuesday, February 24th. Bank of America reaffirmed an “underperform” rating and set a $6.00 price target (down from $16.50) on shares of ACV Auctions in a research report on Thursday, November 6th. Finally, Barclays reduced their price objective on ACV Auctions from $8.00 to $7.00 and set an “equal weight” rating for the company in a research note on Monday. Eight analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, ACV Auctions has an average rating of “Moderate Buy” and an average target price of $11.32.

ACV Auctions Stock Performance

The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.56 and a current ratio of 1.56. The firm has a market capitalization of $953.91 million, a PE ratio of -11.18 and a beta of 1.63. The firm’s 50 day moving average price is $7.47 and its 200-day moving average price is $8.49.

ACV Auctions (NASDAQ:ACVA) last released its quarterly earnings results 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). The business 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 12.94% and a negative net margin of 12.51%.The business’s revenue for the quarter was up 15.2% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.16) EPS. On average, research analysts expect that ACV Auctions Inc. will post -0.07 EPS for the current year.

Insider Transactions at ACV Auctions

In related news, CEO George Chamoun acquired 14,286 shares of the firm’s stock in a transaction on Monday, January 12th. The shares were acquired at an average cost of $8.81 per share, with a total value of $125,859.66. Following the completion of the acquisition, the chief executive officer directly owned 2,598,383 shares in the company, valued at approximately $22,891,754.23. This trade represents a 0.55% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On ACV Auctions

Several institutional investors have recently bought and sold shares of ACVA. Geode Capital Management LLC raised its stake in ACV Auctions by 11.3% in the 2nd quarter. Geode Capital Management LLC now owns 3,928,666 shares of the company’s stock valued at $63,731,000 after purchasing an additional 398,106 shares during the last quarter. Riverbridge Partners LLC grew its holdings in shares of ACV Auctions by 18.6% during 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. Connor Clark & Lunn Investment Management Ltd. raised its position in shares of ACV Auctions by 42.6% in the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 483,306 shares of the company’s stock valued at $7,839,000 after buying an additional 144,283 shares during the last quarter. Iridian Asset Management LLC CT lifted its stake 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 buying an additional 649,358 shares in the last quarter. Finally, Campbell & CO Investment Adviser LLC boosted its position in 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 acquiring an additional 119,596 shares during the last quarter. 88.55% of the stock is currently owned by institutional investors and hedge funds.

ACV Auctions Company Profile

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.