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

Ernest Garcia II, a director and significant shareholder of Carvana Co., executed multiple sales of Class A Common Stock between June 4th and June 5th, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Ernest Garcia II, a director and 10% owner of Carvana Co., has sold shares of Class A Common Stock.
• The sales occurred on June 4th and 5th, 2024.
• The transactions were executed under a Rule 10b5-1 trading plan adopted on March 11, 2024.
• On June 4th, 7,257 shares were sold at a weighted average price of $98.7563, 19,549 shares at $99.41, 29,906 shares at $100.2305, and 3,288 shares at $101.0952.
• On June 5th, 8,102 shares were sold at a weighted average price of $101.1897, 11,998 shares at $102.078, 19,674 shares at $103.1764, 18,343 shares at $103.9529, and 1,883 shares at $104.7427.
• Following these transactions, Garcia directly owns 1,657,500 shares of Class A Common Stock.
• Garcia also indirectly owns shares through Verde Investments, Inc., Ernest Irrevocable 2004 Trust III, 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.

Sentiment

Score: 5

Explanation: The document is a standard SEC Form 4 filing, indicating transactions by an insider. It's neutral in tone and doesn't inherently suggest positive or negative sentiment about the company's prospects.

Industry Context

Sales by major shareholders are common and can be for a variety of reasons, including diversification, tax planning, or personal liquidity needs. The use of a 10b5-1 plan suggests the sales were pre-planned and not based on inside information.

Stakeholder Impact

• The sale of shares by a significant shareholder could create short-term selling pressure on the stock.
• However, the existence of a 10b5-1 plan mitigates concerns about insider information being used for trading.

Key Dates