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 shares of Class A Common Stock on July 15, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On July 15, 2024, Ernest C. Garcia II, a director and 10% owner of Carvana Co. (CVNA), sold multiple blocks of Class A Common Stock.
• The sales were executed under a Rule 10b5-1 trading plan adopted on March 11, 2024.
• The transactions involved the disposal of 3,700 shares at $137.427, 2,700 shares at $138.2378, 6,732 shares at $139.7145, 16,569 shares at $140.6859, 21,480 shares at $141.5855, 14,667 shares at $142.5655, 9,052 shares at $143.4996, and 100 shares at $144.18.
• Following these transactions, Verde Investments, Inc., an entity wholly owned and controlled by Mr. Garcia, indirectly holds 2,465,814 Class A Common Stock.
• Mr. Garcia also indirectly holds shares through the Ernest Irrevocable 2004 Trust III and the Ernest C. Garcia III Multi-Generational Trust III.
• Additionally, Mr. Garcia holds Class B Common Stock directly and indirectly through various entities.
• The filing also mentions Class A Units exchangeable for Class A Shares pursuant to an Exchange Agreement.

Sentiment

Score: 5

Explanation: The sentiment is neutral as the filing simply reports transactions under a pre-existing trading plan. There is no indication of positive or negative implications for the company.

Industry Context

Sales by major shareholders are routinely scrutinized by the market. The use of a 10b5-1 plan suggests the sales were pre-planned and not based on current, non-public information.

Stakeholder Impact

• The sale of shares by a major shareholder could create short-term uncertainty among investors.
• However, the existence of a 10b5-1 trading plan mitigates concerns about insider trading.

Key Dates