Form 4: Carvana Director Ernest Garcia II Sells Shares Under 10b5-1 Plan

Ernest Garcia II, a director and 10% owner of Carvana Co., sold Class A Common Stock through Verde Investments, Inc. under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Ernest C. Garcia II, a director and 10% owner of Carvana Co. (CVNA), has reported the sale of Class A Common Stock.
• The sales were executed on July 30 and 31, 2024, under a Rule 10b5-1 trading plan adopted on March 11, 2024.
• The shares were sold at weighted average prices ranging from $123.726 to $137.0071.
• The sales were conducted through Verde Investments, Inc., an entity wholly owned and controlled by Mr. Garcia.
• After the reported transactions, Verde Investments, Inc. beneficially owns 1,565,814 shares of Class A Common Stock.
• Mr. Garcia also has indirect beneficial ownership through various trusts and entities, including the Ernest Irrevocable 2004 Trust III, the Ernest C. Garcia III Multi-Generational Trust III, and ECG II SPE, LLC.
• These entities also hold Class A Units exchangeable for Class A shares and Class B Common Stock.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing reporting share sales by a director. It doesn't inherently convey positive or negative sentiment, but the market's interpretation could vary.

Risks

• The sales by a director and significant shareholder could be perceived negatively by the market.
• The reliance on a 10b5-1 plan suggests a predetermined selling strategy, which may continue in the future.

Future Outlook

The document does not contain any specific forward-looking statements, but the ongoing sales under the 10b5-1 plan suggest continued transactions.

Industry Context

Sales by insiders are common and often pre-planned, but the market reaction can vary depending on the size and frequency of the transactions and the overall sentiment towards the company.

Stakeholder Impact

• Shareholders may react to the news of insider selling, potentially impacting the stock price.
• The impact on other stakeholders is likely minimal unless the sales indicate a broader concern about the company's prospects.

Key Dates