Form 4: Carvana Director Ernest Garcia II Executes Stock Sales Under 10b5-1 Plan

Director Ernest Garcia II converted Class A Units into Class A Shares and sold a portion of his Carvana stock under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Ernest C. Garcia II, a director and 10% owner of Carvana Co., filed a Form 4 detailing changes in his beneficial ownership of the company's securities.
• On October 11 and 14, 2024, Garcia converted Class A Common Units of Carvana Group, LLC into Class A Shares of Carvana Co. pursuant to an Exchange Agreement.
• He then sold a portion of these Class A shares on the same days under a Rule 10b5-1 trading plan adopted on March 11, 2024.
• The sales were executed in multiple transactions at varying prices, with weighted average prices ranging from approximately $188.49 to $194.68 per share.
• A total of 100,000 Class A shares were converted on both October 11 and October 14.
• The sales resulted in Garcia directly owning 0 Class A shares.
• Garcia also owns Class B shares directly and indirectly through trusts and an LLC.
• The filing also reflects the cancellation of Class B Common Stock in connection with the conversion of Class A Units into Class A Shares.

Sentiment

Score: 5

Explanation: The document is a standard regulatory filing detailing stock transactions. It doesn't inherently convey positive or negative sentiment, but rather provides factual information about insider trading activity.

Industry Context

This filing is a routine disclosure related to insider trading activity. It's common for executives to use 10b5-1 plans to sell shares over time to avoid accusations of trading on inside information.

Stakeholder Impact

• The stock sales by a major shareholder could create short-term selling pressure on the stock.
• The use of a 10b5-1 plan suggests a planned and orderly approach to selling shares, which can reassure investors.

Key Dates