Shares of ACV Auctions Inc. (NASDAQ: ACVA) experienced a significant decline of 10.5% on Thursday, trading as low as $6.45 before closing at $6.4460. This drop followed a previous closing price of $7.20 and marked a stark contrast to the company’s average daily trading volume, which fell by 54% to approximately 1,142,915 shares.
Analyst Ratings Shift Amid Market Concerns
Recent reports from various equity research analysts have contributed to the downward trend in ACV’s stock price. Citigroup downgraded its target price from $17.00 to $13.00 while maintaining a “buy” rating on November 21, 2023. Similarly, The Goldman Sachs Group lowered its price objective from $21.00 to $13.00, also assigning a “buy” rating in a note released on November 7, 2023. Meanwhile, Bank of America updated its rating to “underperform” with a revised target of $6.00, down from $16.50, in a report issued on November 6, 2023.
In a further sign of caution, Barrington Research shifted ACV Auctions from an “outperform” to a “market perform” rating on the same day, while Barclays increased its target price to $8.00 with an “equal weight” rating on January 21, 2023. Overall, the stock has received six “buy” ratings, four “hold” ratings, and one “sell” rating, leading to an average rating of “hold” and a consensus target price of $11.85, according to data from MarketBeat.com.
Insider Transactions Highlight Company Confidence
Despite the stock’s recent performance, insider trading activity suggests a level of confidence in ACV Auctions. CEO George Chamoun purchased 31,172 shares on December 15, 2023, at an average price of $7.97 per share, amounting to a total investment of $248,440.84. Following this transaction, Chamoun holds 2,618,714 shares, valued at approximately $20,871,150.58, reflecting a 1.20% increase in his ownership.
Additionally, Director Brian Hirsch acquired 80,571 shares on November 14, 2023, at an average price of $6.21, totaling around $500,345.91. This purchase significantly boosted his holdings to 99,678 shares, worth approximately $619,000.38, marking an increase of 421.68%. In total, insiders acquired 126,029 shares valued at $874,646 over the last quarter, indicating that insiders currently own 2.90% of the company’s stock.
Institutional Investors Adjust Positions
ACV Auctions has also seen notable activity from institutional investors and hedge funds recently. Fifth Third Bancorp raised its stake by 72.4% in the fourth quarter, owning 3,383 shares valued at $27,000 after acquiring an additional 1,421 shares. Aster Capital Management DIFC Ltd significantly increased its holdings by 298.4% during the third quarter, now owning 3,323 shares worth $33,000.
Furthermore, Larson Financial Group LLC raised its stake by an astounding 38,076.9%, acquiring 4,963 shares valued at $40,000. Farther Finance Advisors LLC also lifted its position by 12,979.5%, now holding 5,755 shares worth $46,000. Covestor Ltd increased its position by 39.9%, owning 5,785 shares valued at $57,000.
Overall, 88.55% of ACV Auctions’ stock is currently owned by hedge funds and institutional investors, reflecting a strategic interest in the company despite the recent stock price decline.
About ACV Auctions
Founded in 2014, ACV Auctions operates a digital marketplace that connects automotive dealers through a mobile-first platform for wholesale vehicle auctions. The company’s technology enables dealers to list, inspect, and bid on used vehicles in real time, utilizing smartphone-based condition reporting and data analytics to enhance the buying and selling process. ACV Auctions also provides subscription-based access to its auction platform and various services designed to help dealers optimize their inventory and reduce risk.
As ACV Auctions navigates market fluctuations, the recent stock performance and analyst ratings will play a crucial role in shaping the company’s strategic direction in the coming months.
