Form 4: ACV Auctions Chief Sales Officer Executes Pre-Planned Stock Option Exercise and Sale

ACV Auctions Inc.'s Chief Sales Officer, Michael Waterman, engaged in a pre-planned transaction, exercising stock options and subsequently selling a portion of his common stock holdings.

Summary

• Michael Waterman, Chief Sales Officer of ACV Auctions Inc. (ACVA), acquired 21,429 shares of common stock on July 8, 2025, through the exercise of employee stock options at an exercise price of $0.14 per share.
• On the same date, July 8, 2025, Mr. Waterman disposed of 34,339 shares of ACV Auctions common stock at a weighted average price of $16.05 per share.
• The sale transactions occurred at prices ranging from $16.00 to $16.22 per share.
• The disposition of shares was conducted pursuant to a Rule 10b5-1 trading plan, which was entered into on December 10, 2024.
• Following these transactions, Mr. Waterman directly beneficially owns 379,957 shares of common stock.
• Additionally, Mr. Waterman directly beneficially owns 259,835 employee stock options.
• The exercised stock option award had a vesting schedule where one-fourth (1/4th) of the shares vested on July 1, 2018, and thereafter one-forty-eighths (1/48th) of the shares vested monthly, contingent on continuous service.

Sentiment

Score: 5

Explanation: Neutral. This is a routine insider transaction (option exercise and sale) conducted under a pre-planned Rule 10b5-1 plan, which is common for executives managing their equity compensation and liquidity. It does not inherently signal positive or negative company performance.

Positives

• The sale was executed under a pre-arranged Rule 10b5-1 trading plan, indicating a planned and not reactive disposition of shares, which can mitigate concerns about insider selling.
• The exercise of stock options at a low price ($0.14) and subsequent sale at a significantly higher price ($16.05 weighted average) demonstrates the value of the equity compensation and the profitability for the officer.

Negatives

• The sale of shares by a Chief Sales Officer, while common for liquidity and compensation, represents a reduction in direct ownership by a key executive.

Future Outlook

N/A

Industry Context

This filing is a routine insider transaction report and does not provide broader industry context or trends. It reflects an individual executive's compensation and personal financial planning within the automotive marketplace industry.

Stakeholder Impact

• Shareholders: The sale of shares by a key executive is a routine event, especially when conducted under a 10b5-1 plan, and typically has minimal direct impact on the broader shareholder base. It provides transparency regarding insider holdings.

Key Dates

Keywords

ACV Auctions, ACVA, Form 4, Insider Trading, Stock Option Exercise, Share Sale, Rule 10b5-1 Plan, Michael Waterman, Chief Sales Officer, Equity Compensation