Michael E Maroone, Board Member at Carvana CVNA, reported an insider sell on May 12, according to a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Maroone sold 9,000 shares of Carvana. The total transaction amounted to $2,460,945.
During Tuesday’s morning session, Carvana shares up by 4.46%, currently priced at $292.08.
Delving into Carvana’s Background
Carvana Co is an e-commerce platform for buying and selling used cars. The company derives revenue from used vehicle sales, wholesale vehicle sales and other sales and revenues. The other sales and revenues include sales of loans originated and sold in securitization transactions or to financing partners, commissions received on VSCs and sales of GAP waiver coverage. The foundation of the business is retail vehicle unit sales. This drives the majority of the revenue and allows the company to capture additional revenue streams associated with financing, VSCs, auto insurance and GAP waiver coverage, as well as trade-in vehicles.
Understanding the Numbers: Carvana’s Finances
Revenue Growth: Carvana’s remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 38.26%. This signifies a substantial increase in the company’s top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Key Insights into Profitability Metrics:
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Gross Margin: Achieving a high gross margin of 21.95%, the company performs well in terms of cost management and profitability within its sector.
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Earnings per Share (EPS): With an EPS below industry norms, Carvana exhibits below-average bottom-line performance with a current EPS of 1.61.
Debt Management: Carvana’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 4.02, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Valuation Metrics:
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Price to Earnings (P/E) Ratio: Carvana’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 97.43.
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Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.39 as compared to the industry average, the stock might be considered overvalued based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 25.18, the company’s market valuation exceeds industry averages.
Market Capitalization Analysis: The company’s market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
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Understanding the Significance of Insider Transactions
Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Important Transaction Codes
Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Carvana’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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