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

Shares of ACV Auctions Inc. (NASDAQ:ACVA) gapped up prior to trading on Thursday . The stock had previously closed at $14.61, but opened at $15.14. ACV Auctions shares last traded at $15.30, with a volume of 511,193 shares trading hands.

Analyst Upgrades and Downgrades

ACVA has been the subject of several research analyst reports. Needham & Company LLC reiterated a “buy” rating and issued a $25.00 price objective on shares of ACV Auctions in a report on Wednesday, March 12th. Bank of America raised shares of ACV Auctions from a “neutral” rating to a “buy” rating and decreased their price objective for the company from $22.00 to $20.00 in a report on Wednesday, March 12th. B. Riley raised their target price on shares of ACV Auctions from $24.00 to $27.00 and gave the stock a “buy” rating in a report on Tuesday, November 26th. JMP Securities restated a “market outperform” rating and set a $25.00 price target on shares of ACV Auctions in a research note on Monday, December 16th. Finally, Citigroup increased their price target on shares of ACV Auctions from $22.00 to $27.00 and gave the stock a “buy” rating in a research report on Wednesday, November 27th. Two equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. Based on data from MarketBeat, ACV Auctions currently has an average rating of “Moderate Buy” and an average price target of $23.23.

ACV Auctions Stock Performance

The company has a quick ratio of 1.56, a current ratio of 1.56 and a debt-to-equity ratio of 0.28. The company has a market capitalization of $2.62 billion, a P/E ratio of -31.44 and a beta of 1.73. The business has a 50 day moving average of $18.87 and a 200 day moving average of $19.75.

ACV Auctions (NASDAQ:ACVA) last posted its earnings results on Wednesday, February 19th. The company reported ($0.14) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.15) by $0.01. The firm had revenue of $159.51 million for the quarter, compared to the consensus estimate of $156.77 million. ACV Auctions had a negative net margin of 12.51% and a negative return on equity of 12.94%. On average, sell-side analysts predict that ACV Auctions Inc. will post -0.07 earnings per share for the current year.

Insider Transactions at ACV Auctions

In related news, CFO William Zerella sold 15,000 shares of the business’s stock in a transaction on Tuesday, March 11th. The stock was sold at an average price of $13.53, for a total transaction of $202,950.00. Following the completion of the transaction, the chief financial officer now owns 766,266 shares in the company, valued at $10,367,578.98. The trade was a 1.92 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Michael Waterman sold 30,162 shares of the firm’s stock in a transaction dated Tuesday, January 7th. The stock was sold at an average price of $20.53, for a total transaction of $619,225.86. Following the completion of the transaction, the insider now directly owns 314,738 shares in the company, valued at $6,461,571.14. This represents a 8.75 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 107,662 shares of company stock worth $2,138,401. 8.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in ACVA. William Blair Investment Management LLC grew its stake in ACV Auctions by 43.2% in the fourth quarter. William Blair Investment Management LLC now owns 12,099,686 shares of the company’s stock valued at $261,353,000 after purchasing an additional 3,652,871 shares during the last quarter. Driehaus Capital Management LLC grew its position in shares of ACV Auctions by 128.5% in the 4th quarter. Driehaus Capital Management LLC now owns 2,837,165 shares of the company’s stock worth $61,283,000 after buying an additional 1,595,657 shares during the last quarter. Spyglass Capital Management LLC raised its stake in shares of ACV Auctions by 69.1% during the 3rd quarter. Spyglass Capital Management LLC now owns 2,614,245 shares of the company’s stock worth $53,148,000 after acquiring an additional 1,068,356 shares in the last quarter. Wellington Management Group LLP purchased a new stake in ACV Auctions during the third quarter valued at approximately $21,540,000. Finally, Franklin Resources Inc. grew its holdings in ACV Auctions by 2,346.2% in the fourth quarter. Franklin Resources Inc. now owns 1,001,365 shares of the company’s stock worth $21,629,000 after purchasing an additional 960,430 shares during the last quarter. 88.55% of the stock is owned by institutional investors.

ACV Auctions Company Profile

ACV Auctions Inc operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. The company’s marketplace platform includes digital marketplace, which connects buyers and sellers by providing online auction, which facilitates real-time transactions of wholesale vehicles; Run List for pre-filtering and pre-screening of vehicles up to 24 hours prior to an auction taking place; ACV transportation service to enable the buyers to see real-time transportation quotes and status reports of the vehicle; ACV capital, a short-term inventory financing services for buyers to purchase vehicles; and Go Green’s seller assurance service for against claims related to defects in the vehicle.