Carvana shares (NYSE:CVNA) jumped over 10% at the time of writing after the company’s CEO, Ernest Garcia, made a whopping $116M stock purchase. Garcia picked up over 3 million Class A Units at a unit price of $37.048 on August 18. In a move that sweetened the deal, he was handed more than 2.5 million Class B Shares at no extra cost. These shares, interestingly, can be swapped for an equal number of Class A Shares as per the Exchange Agreement.
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This is undoubtedly a major move by the CEO, which also goes against the general trend of insider selling witnessed in the past 12 months:
Indeed, insiders have chosen to sell much more often than to buy, as indicated by the graphic above. However, today’s announcement represents the largest transaction by a longshot.
Is Carvana stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on CVNA stock based on one Buy, 11 Holds, and five Sells assigned in the past three months, as indicated by the graphic above. In addition, the average price target of $40.13 per share implies 10.82% downside risk.
