ACV Auctions (NYSE:ACVA) Shares Gap Up – Still a Buy?

ACV Auctions Inc. (NYSE:ACVA) shares gapped up prior to trading on Thursday . The stock had previously closed at $5.65, but opened at $5.94. ACV Auctions shares last traded at $5.8140, with a volume of 371,443 shares changing hands.

Analysts Set New Price Targets

A number of research analysts recently commented on the stock. 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 research note on Monday, March 2nd. Needham & Company LLC reiterated a “buy” rating and issued a $9.00 price target on shares of ACV Auctions in a research note on Tuesday, February 24th. Wall Street Zen upgraded shares of ACV Auctions from a “sell” rating to a “hold” rating in a research note on Sunday, February 1st. Weiss Ratings reiterated a “sell (e+)” rating on shares of ACV Auctions in a research note on Friday, March 27th. Finally, Royal Bank Of Canada upgraded shares of ACV Auctions to an “outperform” rating in a research note on Tuesday, February 24th. Two analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $10.45.

ACV Auctions Stock Performance

The stock’s 50-day simple moving average is $4.96 and its 200-day simple moving average is $6.63. The stock has a market cap of $1.03 billion, a price-to-earnings ratio of -16.84 and a beta of 1.78. The company has a current ratio of 1.47, a quick ratio of 1.47 and a debt-to-equity ratio of 0.46.

ACV Auctions (NYSE:ACVA) last announced its 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). ACV Auctions had a negative return on equity of 5.52% and a negative net margin of 7.97%.The business had revenue of $183.65 million for the quarter, compared to analyst estimates of $181.96 million. During the same quarter in the previous year, the company earned ($0.16) EPS. The business’s revenue for the quarter was up 15.2% on a year-over-year basis. Analysts forecast that ACV Auctions Inc. will post -0.19 earnings per share for the current fiscal year.

Insider Activity

In other ACV Auctions news, CEO George Chamoun bought 24,272 shares of the firm’s stock in a transaction on Monday, March 9th. The shares were purchased at an average price of $5.05 per share, for a total transaction of $122,573.60. Following the transaction, the chief executive officer directly owned 2,952,977 shares in the company, valued at approximately $14,912,533.85. This trade represents a 0.83% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 2.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Iridian Asset Management LLC CT lifted its holdings in shares of ACV Auctions by 58.9% during the 4th quarter. Iridian Asset Management LLC CT now owns 2,989,152 shares of the company’s stock worth $23,973,000 after acquiring an additional 1,108,301 shares during the period. CenterBook Partners LP lifted its holdings in shares of ACV Auctions by 827.8% during the 3rd quarter. CenterBook Partners LP now owns 567,799 shares of the company’s stock worth $5,627,000 after acquiring an additional 506,600 shares during the period. William Blair Investment Management LLC lifted its holdings in shares of ACV Auctions by 3.3% during the 3rd quarter. William Blair Investment Management LLC now owns 11,471,709 shares of the company’s stock worth $113,685,000 after acquiring an additional 362,003 shares during the period. Campbell & CO Investment Adviser LLC lifted its holdings in shares of ACV Auctions by 1,030.4% during the 3rd 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 period. Finally, Royce & Associates LP lifted its holdings in shares of ACV Auctions by 62.6% during the 3rd quarter. Royce & Associates LP now owns 718,392 shares of the company’s stock worth $7,119,000 after acquiring an additional 276,591 shares during the period. Institutional investors and hedge funds own 88.55% of the company’s stock.

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.