Form 4: Carvana CEO's Tax Withholding on Stock Vesting

Carvana CEO Ernest C. Garcia III reported the withholding of 1,229 Class A Common Stock shares for tax obligations following restricted stock unit vesting.

Summary

• Ernest C. Garcia III, Carvana Co.'s Director, 10% Owner, and Chief Executive Officer, reported a transaction on November 1, 2025.
• The transaction involved the disposition of 1,229 shares of Class A Common Stock, which were withheld for taxes upon the vesting of restricted stock units.
• The shares were withheld at a price of $306.54 per share.
• Following this transaction, Ernest C. Garcia III directly beneficially owns 919,467 shares of Class A Common Stock.
• Additionally, he indirectly beneficially owns 450,000 shares through the Ernest C. Garcia III Multi-Generational Trust III and 350,000 shares through the Ernest Irrevocable 2004 Trust III.

Sentiment

Score: 6

Explanation: The transaction reflects a routine tax withholding event following the vesting of restricted stock units, which is a standard part of executive compensation. While it involves a disposition of shares, the underlying vesting is a positive event for the executive.

Positives

• The underlying event is the vesting of restricted stock units, which represents a realization of equity compensation for the CEO.

Negatives

• The transaction resulted in a reduction of 1,229 shares from the CEO's direct beneficial ownership due to tax withholding.

Future Outlook

NA

Industry Context

NA

Related Party Transactions

• The filing discloses indirect beneficial ownership of 450,000 Class A Common Stock shares through the Ernest C. Garcia III Multi-Generational Trust III, where the Reporting Person serves as Investment Trustee and Co-Administrative Trustee.
• The filing discloses indirect beneficial ownership of 350,000 Class A Common Stock shares through the Ernest Irrevocable 2004 Trust III, where the Reporting Person serves as Investment Trustee and Co-Administrative Trustee.

Stakeholder Impact

• Minimal direct impact on shareholders as this is a routine tax-related transaction for executive compensation.

Key Dates

Recommendation

This Form 4 reports a routine tax withholding transaction by the CEO following the vesting of restricted stock units. Such transactions are common for executive compensation and do not typically signal a change in company fundamentals or management's outlook, thus a 'hold' recommendation remains appropriate based solely on this filing.

Keywords

Carvana, CVNA, Ernest C. Garcia III, Form 4, Insider Transaction, Stock Vesting, Tax Withholding, CEO, Director, 10% Owner