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

Ernest Garcia II, a director and 10% owner of Carvana Co., sold Class A Common Stock between August 6, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On August 6, 2024, Ernest C. Garcia II, a director and 10% owner of Carvana Co., executed multiple sales of Class A Common Stock.
• The sales were conducted under a Rule 10b5-1 trading plan adopted on March 11, 2024, by Ernest C. Garcia II and Elizabeth Joanne Garcia.
• The transactions involved the disposal of shares at weighted average prices ranging from $132.9048 to $140.5941.
• The sales resulted in a decrease in the number of Class A Common Stock shares indirectly held by Verde Investments, Inc., an entity wholly owned and controlled by Mr. Garcia.
• Mr. Garcia also holds Class A and Class B shares, as well as Class A Units, 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.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing detailing share sales by a director. It doesn't inherently convey positive or negative sentiment, but rather provides factual information about transactions.

Industry Context

Sales by major shareholders are common and often pre-planned to avoid accusations of insider trading. The use of a 10b5-1 plan suggests the sales were scheduled well in advance.

Stakeholder Impact

• The share sales could potentially exert downward pressure on the stock price in the short term.
• The use of a 10b5-1 plan may reassure investors that the sales were pre-planned and not based on insider information.

Key Dates