Form 4: ACV Auctions Director Reports Share Conversions and Sales

Robert P. Goodman, a director at ACV Auctions Inc., reported converting Class B Common Stock to Class A Common Stock and selling shares, along with receiving refresher grant restricted stock units.

Summary

• On May 28, 2024, Director Robert P. Goodman reported converting shares of Class B Common Stock to Class A Common Stock.
• Bessemer Venture Partners IX L.P. (BVP IX) converted 30,001 shares, Bessemer Venture Partners IX Institutional L.P. (BVP IX Inst) converted 24,036 shares, and 15 Angels III LLC converted 497 shares.
• These entities also sold shares of Class A Common Stock at a weighted average price of $19.20, with prices ranging from $18.75 to $19.62.
• Goodman also received 9,239 Refresher Grant Restricted Stock Units (RSUs) on May 29, 2024, which will vest on the first anniversary of the grant date or the day before the next Annual Meeting.
• Following these transactions, Goodman directly owns 375,219 shares of Class A Common Stock.
• He also has indirect ownership through NB Group, LLC (7,392 shares) and Katama Point LLC (13,063 shares), but disclaims beneficial ownership except to the extent of his pecuniary interest.
• BVP IX, BVP IX Inst, and 15 Angels hold 3,589,544, 2,875,771, and 59,471 shares of Class B Stock, respectively.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The transactions are routine, with some selling offset by the granting of RSUs. The market's reaction will depend on its interpretation of the sales by BVP IX Funds.

Positives

• The receipt of Refresher Grant Restricted Stock Units (RSUs) by the director indicates continued alignment with the company's long-term success.

Negatives

• The sale of shares by BVP IX, BVP IX Inst, and 15 Angels could be perceived negatively by the market, depending on the context and overall market sentiment.

Risks

• The market's reaction to the sale of shares by significant holders could impact the stock price.
• The vesting of RSUs is contingent on the director's continuous service, which introduces a dependency on his continued involvement.

Future Outlook

The RSUs will vest on the first anniversary of the Refresher Grant Date or the day immediately preceding the next Annual Meeting, contingent on the director's continuous service.

Industry Context

Insider transactions are closely monitored in the auction and automotive industries as they can provide insights into the confidence levels of key stakeholders regarding the company's prospects. This filing is a routine disclosure, but the market's interpretation can vary based on overall sentiment and company performance.

Comparison to Industry Standards

• Comparing ACV Auctions' insider trading activity to peers like Copart (CPRT) and KAR Auction Services (KAR) can provide context.
• For example, large institutional holders in Copart often make similar transactions, and their impact on the stock price is closely watched.
• Similarly, monitoring insider activity in KAR Auction Services (now OPENLANE) provides a benchmark for understanding market sentiment in the automotive auction space.

Stakeholder Impact

• Shareholders may react to the sale of shares by BVP IX Funds, depending on market sentiment.
• Employees may view the granting of RSUs to the director as a positive sign of alignment between management and company success.

Next Steps

• Monitor the vesting of the RSUs on the first anniversary of the grant date or the day before the next Annual Meeting.
• Track any further transactions by the reporting person or related entities.
• Observe market reaction to the reported transactions.

Key Dates