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

Ernest Garcia II, a director and significant shareholder of Carvana Co., executed multiple sales of Class A Common Stock on May 8th and 9th, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Ernest Garcia II, a director and 10% owner of Carvana Co., sold shares of Class A Common Stock on May 8th and 9th, 2024.
• The sales were executed under a Rule 10b5-1 trading plan adopted on March 11, 2024.
• On May 8th, Garcia sold 29,762 shares at a weighted average price of $113.4598, 20,404 shares at $114.3445, 9,084 shares at $115.1277, and 750 shares at $116.
• On May 9th, Garcia sold 9,083 shares at a weighted average price of $113.3553, 5,000 shares at $114.4352, 2,151 shares at $115.3343, 13,929 shares at $116.8126, 20,321 shares at $117.5024, 3,746 shares at $118.6742, 4,000 shares at $119.6313, and 1,770 shares at $120.3258.
• Following these transactions, Garcia directly owns 2,737,500 shares of Class A Common Stock.
• Garcia also indirectly owns shares through Verde Investments, Inc., Ernest Irrevocable 2004 Trust III, ECG II SPE, LLC and Ernest C. Garcia III Multi-Generational Trust III.
• He directly owns 41,442,317 shares of Class B Common Stock.
• He also indirectly owns Class B Common Stock through Ernest Irrevocable 2004 Trust III, Ernest C. Garcia III Multi-Generational Trust III and ECG II SPE, LLC.
• Garcia also holds Class A Units exchangeable for Class A Common Stock through various entities and trusts.

Sentiment

Score: 4

Explanation: The sentiment is neutral to slightly negative. While the sales are pre-planned, large insider sales can sometimes create uncertainty among investors.

Risks

• Continued sales by insiders could exert downward pressure on the stock price.

Industry Context

Insider sales are a common occurrence, but the market often scrutinizes them for signals about a company's prospects; large or frequent sales can sometimes be interpreted negatively.

Stakeholder Impact

• Shareholders may react to the news of insider selling, potentially impacting the stock price.
• The company's reputation could be affected depending on how the market interprets the insider sales.

Key Dates