Carvana Insiders Are Buying CVNA Stock. Here’s Why.

  • Carvana's (CVNA) Vice President of General Counsel and Secretary Paul Breaux bought 15,000 shares on June 2.
  • Chief Brand Officer Ryan Keeton bought 40,000 shares from June 6 to June 7.
  • CVNA stock is down 90% year-to-date.
CVNA stock - Carvana Insiders Are Buying CVNA Stock. Here’s Why.

Source: Carvana

Carvana (NYSE:CVNA) insiders have been on a buying spree this year, and it hasn’t stopped in June. In the first week of June, two insiders have already reported picking up shares of CVNA stock.

Meanwhile, the Manheim Used Vehicle Value Index rose month-over-month for the first time this year in May after four consecutive down months. The index is known as the “premier indicator of pricing trends in the used vehicle market.” Furthermore, the index takes into account and adjusts for several factors, such as vehicle class and seasonality. In May, prices for used compact, mid-size, and luxury vehicles all experienced increases of over 12% year-over-year (YOY). The only class of used vehicle to experience a YOY decline was pickup trucks, which fell by 2.7%.

With that in mind, let’s get into the details of the CVNA stock insider transactions.

CVNA Stock: Insiders Continue Their Buying Spree

On June 2, Vice President of General Counsel and Secretary Paul Breaux purchased 15,000 shares at an average price of $26.24 per share. The purchase amounted to $393,600 and the VP now owns a total of 93,149 shares. In addition, Breaux purchased shares of CVNA on three separate occasions during May. The most recent purchase fell on May 31 when Breaux purchased 14,000 shares at an average price of $31.09 per share.

On June 6, Chief Brand Officer Ryan Keeton purchased 20,000 shares at an average price of $25.02 per share. The next day, he purchased an additional 20,000 shares at an average price of $24.47 per share. In total, the transactions fell just short of $1 million, tallying in at $989,800. After the purchases, Keeton now owns a total of 74,269 shares.

It should be noted that both insider purchases were not enacted via a prearranged 10b5-1 trading plan. Insiders utilize this plan by planning out their trades several months in advance in order to avoid accusations of insider trading. On the other hand, when insiders trade without the plan, it can be implied that they believe their company is attractive at current levels.

So, how do other Carvana insiders feel about their company? In the past year, insiders have purchased 14.75 million shares while selling 14.91 million shares. In total, insiders have amounted to a net activity of 155,979 shares sold. However, in the past three months, insiders have purchased 7.23 million shares while selling only 101,871 shares. As the price of CVNA falls, insiders seem happy to increase their position.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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