Form 4: Carvana CEO Sells $3.7M in Stock via 10b5-1 Plan

Carvana CEO Ernest C. Garcia III sold 10,070 shares of Class A Common Stock for approximately $3.76 million through pre-arranged trading plans.

Summary

• Ernest C. Garcia III, Carvana Co.'s Chief Executive Officer, Director, and 10% Owner, reported the sale of 10,070 shares of Class A Common Stock.
• The transactions occurred on October 6, 2025, and were executed under a Rule 10b5-1 trading plan adopted on December 13, 2024.
• The shares were sold at volume-weighted average prices ranging from $367.23 to $379.19 per share.
• The total value of the shares sold is approximately $3,756,230.62.
• The sales were made indirectly through the Ernest Irrevocable 2004 Trust III and the Ernest C. Garcia III Multi-Generational Trust III, for which Mr. Garcia serves as Investment Trustee and Co-Administrative Trustee.
• Following these transactions, the Ernest Irrevocable 2004 Trust III holds 361,440 shares, and the Ernest C. Garcia III Multi-Generational Trust III holds 461,440 shares. Mr. Garcia also directly holds 920,696 shares.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to significant insider selling by the CEO and a 10% owner. While the sales were pre-planned under a 10b5-1 plan, which mitigates the immediate negative signal, it still represents a divestment by a key insider.

Negatives

• The Chief Executive Officer and a 10% owner of Carvana Co. sold a significant number of shares, which can be perceived as a negative signal by investors.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders may interpret the insider selling as a lack of confidence or a planned liquidity event, potentially influencing their investment decisions.

Key Dates

Recommendation

The CEO's sale of shares, while executed under a pre-arranged 10b5-1 plan, represents a significant insider divestment. This could be interpreted as a planned liquidity event rather than a reaction to immediate negative news, given the pre-scheduled nature. Investors should monitor future insider activity and company performance closely. The 10b5-1 plan mitigates the immediate negative signal, suggesting the sale is not based on new, undisclosed material information, but it still indicates a reduction in insider ownership.

Keywords

Carvana, CVNA, Ernest C. Garcia III, Insider Sale, Form 4, 10b5-1 Plan, Stock Transaction, CEO