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

ACV Auctions Inc. (NYSE:ACVA)’s share price gapped up before the market opened on Thursday . The stock had previously closed at $5.22, but opened at $6.17. ACV Auctions shares last traded at $6.0470, with a volume of 1,900,108 shares.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on ACVA shares. Needham & Company LLC reaffirmed a “buy” rating and set a $9.00 price target on shares of ACV Auctions in a research report on Tuesday, February 24th. The Goldman Sachs Group cut their price objective on shares of ACV Auctions from $13.00 to $10.00 and set a “buy” rating on the stock in a report on Tuesday, February 24th. Citigroup lowered shares of ACV Auctions from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $13.00 to $7.00 in a report on Tuesday, February 24th. Barclays cut their price objective on shares of ACV Auctions from $8.00 to $7.00 and set an “equal weight” rating on the stock in a report on Monday, March 2nd. Finally, Wall Street Zen upgraded shares of ACV Auctions from a “sell” rating to a “hold” rating in a report on Sunday, February 1st. Two investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, five have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, ACV Auctions currently has a consensus rating of “Moderate Buy” and a consensus target price of $10.45.

ACV Auctions Price Performance

The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.60 and a current ratio of 1.47. The stock has a market cap of $1.12 billion, a price-to-earnings ratio of -18.33 and a beta of 1.78. The business’s fifty day simple moving average is $4.85 and its 200 day simple moving average is $6.76.

ACV Auctions (NYSE:ACVA) last issued its quarterly earnings data on Monday, February 23rd. The company reported ($0.11) 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 firm had revenue of $183.65 million during the quarter, compared to analyst estimates of $181.96 million. During the same quarter in the prior year, the firm earned ($0.16) EPS. The business’s quarterly revenue was up 15.2% compared to the same quarter last year. Research analysts predict that ACV Auctions Inc. will post -0.19 EPS for the current fiscal year.

Insider Activity

In related news, CEO George Chamoun bought 24,272 shares of the business’s stock in a transaction dated Monday, March 9th. The shares were acquired at an average price of $5.05 per share, for a total transaction of $122,573.60. Following the purchase, the chief executive officer owned 2,952,977 shares in the company, valued at $14,912,533.85. This trade represents a 0.83% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 2.90% of the company’s stock.

Institutional Investors Weigh In On ACV Auctions

Institutional investors have recently modified their holdings of the stock. Aster Capital Management DIFC Ltd raised its stake in shares of ACV Auctions by 298.4% in the 3rd quarter. Aster Capital Management DIFC Ltd now owns 3,323 shares of the company’s stock valued at $33,000 after purchasing an additional 2,489 shares in the last quarter. Fifth Third Bancorp raised its stake in shares of ACV Auctions by 72.4% in the 4th quarter. Fifth Third Bancorp now owns 3,383 shares of the company’s stock valued at $27,000 after purchasing an additional 1,421 shares in the last quarter. Caitong International Asset Management Co. Ltd raised its stake in shares of ACV Auctions by 2,573.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,770 shares of the company’s stock valued at $30,000 after purchasing an additional 3,629 shares in the last quarter. Larson Financial Group LLC raised its stake in shares of ACV Auctions by 38,076.9% in the 4th quarter. Larson Financial Group LLC now owns 4,963 shares of the company’s stock valued at $40,000 after purchasing an additional 4,950 shares in the last quarter. Finally, Farther Finance Advisors LLC raised its stake in shares of ACV Auctions by 12,979.5% in the 4th quarter. Farther Finance Advisors LLC now owns 5,755 shares of the company’s stock valued at $46,000 after purchasing an additional 5,711 shares in the last quarter. 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.