ACV Auctions (NASDAQ:ACVA) Shares Gap Down After Analyst Downgrade

ACV Auctions Inc. (NASDAQ:ACVA) shares gapped down prior to trading on Thursday after Needham & Company LLC lowered their price target on the stock from $28.00 to $25.00. The stock had previously closed at $20.65, but opened at $18.50. Needham & Company LLC currently has a buy rating on the stock. ACV Auctions shares last traded at $18.92, with a volume of 1,412,267 shares trading hands.

Other equities research analysts have also recently issued reports about the company. Citigroup increased their price objective on ACV Auctions from $22.00 to $27.00 and gave the company a “buy” rating in a research report on Wednesday, November 27th. Barrington Research reissued an “outperform” rating and issued a $23.00 price objective on shares of ACV Auctions in a research report on Monday, November 4th. Piper Sandler raised their target price on ACV Auctions from $16.00 to $18.00 and gave the stock a “neutral” rating in a research report on Friday, November 8th. Stephens raised ACV Auctions to a “hold” rating in a research report on Saturday, February 1st. Finally, B. Riley raised their target price on ACV Auctions from $24.00 to $27.00 and gave the stock a “buy” rating in a research report on Tuesday, November 26th. Three analysts have rated the stock with a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat, ACV Auctions presently has an average rating of “Moderate Buy” and a consensus target price of $23.35.

Insiders Place Their Bets

In other ACV Auctions news, CFO William Zerella sold 32,500 shares of the stock in a transaction on Tuesday, November 26th. The stock was sold at an average price of $22.41, for a total transaction of $728,325.00. Following the completion of the transaction, the chief financial officer now directly owns 490,482 shares in the company, valued at $10,991,701.62. This represents a 6.21 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Michael Waterman sold 30,162 shares of the stock in a transaction on Tuesday, January 7th. The stock was sold at an average price of $20.53, for a total value of $619,225.86. Following the transaction, the insider now owns 314,738 shares of the company’s stock, valued at $6,461,571.14. This represents a 8.75 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 125,162 shares of company stock worth $2,663,776 over the last three months. 8.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of ACVA. MCF Advisors LLC increased its stake in shares of ACV Auctions by 107.0% in the third quarter. MCF Advisors LLC now owns 1,480 shares of the company’s stock valued at $30,000 after buying an additional 765 shares in the last quarter. Blue Trust Inc. increased its stake in shares of ACV Auctions by 165.2% in the third quarter. Blue Trust Inc. now owns 1,419 shares of the company’s stock valued at $29,000 after buying an additional 884 shares in the last quarter. Icon Wealth Advisors LLC increased its stake in shares of ACV Auctions by 13.5% in the third quarter. Icon Wealth Advisors LLC now owns 11,048 shares of the company’s stock valued at $225,000 after buying an additional 1,317 shares in the last quarter. Arizona State Retirement System increased its stake in shares of ACV Auctions by 3.6% in the fourth quarter. Arizona State Retirement System now owns 44,126 shares of the company’s stock valued at $953,000 after buying an additional 1,520 shares in the last quarter. Finally, Los Angeles Capital Management LLC increased its stake in shares of ACV Auctions by 6.6% in the third quarter. Los Angeles Capital Management LLC now owns 26,958 shares of the company’s stock valued at $548,000 after buying an additional 1,670 shares in the last quarter. 88.55% of the stock is currently owned by institutional investors and hedge funds.

ACV Auctions Stock Performance

The company has a market capitalization of $3.12 billion, a price-to-earnings ratio of -39.55 and a beta of 1.69. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.51 and a quick ratio of 1.51. The stock has a 50 day moving average price of $21.22 and a two-hundred day moving average price of $20.12.

ACV Auctions (NASDAQ:ACVA) last posted its quarterly earnings results on Wednesday, February 19th. The company reported ($0.14) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.15) by $0.01. The business had revenue of $159.51 million for the quarter, compared to analysts’ expectations of $156.77 million. ACV Auctions had a negative return on equity of 12.11% and a negative net margin of 12.89%. On average, analysts predict that ACV Auctions Inc. will post -0.33 EPS for the current fiscal year.

About ACV Auctions

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.