Carvana (NYSE:CVNA) stock is climbing higher on Tuesday after the used-car retailer adopted a poison pill position.
This poison pill strategy has Carvana seeking to protect its net operating loss carryforwards (NOLs). The company calls the move a “Tax Asset Preservation Plan” that will trigger if an investor obtains a stake of 4.9% or more of CVNA stock.
To go along with this, the plan doesn’t affect current shareholders that already have a greater than 4.9% stake in CVNA. However, the plan will still trigger if these holders attempt to acquire any more of the company’s shares.
According to Carvana, it’s adopting this poison pill plan for the best interest of the company and its shareholders. The company notes that this plan won’t stop the board from taking any actions it deems to be in the best interest of the company.
How This Is Affecting CVNA Stock
With news of the poison pill strategy comes heavy trading of CVNA stock today. As of this writing, more than 14 million shares have been traded. That’s quickly approaching the company’s daily average trading volume of 23 million shares just one hour after markets opened.
In addition to that, shares of CNVA stock are up 11.1% as of Tuesday morning.
Investors seeking out all of the latest stock market news today will want to keep reading!
InvestorPlace has all of the most recent stock market coverage traders need to know about for Tuesday! Among that is what has shares of Bed Bath & Beyond (NASDAQ:BBBY), Tritium (NASDAQ:DCFC) and Alibaba (NYSE:BABA) stock moving today. You can get up to speed on all of this at the following links!
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On the date of publication, William White 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.