ACV Auctions (NASDAQ:ACVA) Shares Gap Up – Should You Buy?

ACV Auctions Inc. (NASDAQ:ACVA)’s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $13.78, but opened at $14.66. ACV Auctions shares last traded at $14.21, with a volume of 398,163 shares traded.

Wall Street Analyst Weigh In

Several research firms recently commented on ACVA. B. Riley increased their target price on shares of ACV Auctions from $24.00 to $27.00 and gave the company a “buy” rating in a report on Tuesday, November 26th. Citigroup raised their price objective on ACV Auctions from $22.00 to $27.00 and gave the company a “buy” rating in a research note on Wednesday, November 27th. Stephens raised ACV Auctions to a “hold” rating in a research note on Saturday, February 1st. Needham & Company LLC restated a “buy” rating and set a $25.00 price target on shares of ACV Auctions in a research report on Wednesday. Finally, Bank of America upgraded ACV Auctions from a “neutral” rating to a “buy” rating and lowered their price objective for the company from $22.00 to $20.00 in a research report on Wednesday. Three analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat.com, ACV Auctions has an average rating of “Moderate Buy” and a consensus price target of $23.05.

ACV Auctions Price Performance

The firm has a market capitalization of $2.43 billion, a P/E ratio of -29.36 and a beta of 1.73. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.56 and a quick ratio of 1.56. The stock’s fifty day simple moving average is $19.67 and its 200 day simple moving average is $19.94.

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

Insider Buying and Selling at ACV Auctions

In related news, insider Michael Waterman sold 30,162 shares of the company’s stock in a transaction dated Tuesday, January 7th. The shares were 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 owns 314,738 shares in the company, valued at $6,461,571.14. This represents a 8.75 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO William Zerella sold 32,500 shares of the firm’s stock in a transaction dated Monday, December 30th. The shares were sold at an average price of $21.65, for a total transaction of $703,625.00. Following the completion of the transaction, the chief financial officer now directly owns 490,482 shares in the company, valued at $10,618,935.30. This represents a 6.21 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 92,662 shares of company stock valued at $1,935,451 over the last ninety days. Corporate insiders own 8.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in shares of ACV Auctions by 5.5% during the fourth quarter. Vanguard Group Inc. now owns 14,245,915 shares of the company’s stock worth $307,712,000 after buying an additional 738,391 shares in the last quarter. William Blair Investment Management LLC grew its stake in ACV Auctions by 43.2% during the 4th quarter. William Blair Investment Management LLC now owns 12,099,686 shares of the company’s stock valued at $261,353,000 after acquiring an additional 3,652,871 shares in the last quarter. Massachusetts Financial Services Co. MA grew its stake in ACV Auctions by 11.6% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 8,655,640 shares of the company’s stock valued at $175,969,000 after acquiring an additional 897,477 shares in the last quarter. Alliancebernstein L.P. raised its holdings in ACV Auctions by 5.3% in the 4th quarter. Alliancebernstein L.P. now owns 5,622,255 shares of the company’s stock valued at $121,441,000 after acquiring an additional 284,880 shares during the last quarter. Finally, Jennison Associates LLC lifted its stake in ACV Auctions by 17.2% in the 4th quarter. Jennison Associates LLC now owns 4,980,354 shares of the company’s stock worth $107,576,000 after purchasing an additional 732,422 shares in the last quarter. 88.55% of the stock is owned by institutional investors and hedge funds.

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.