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

Ernest C. Garcia II, a director and 10% owner of Carvana Co., sold shares of Class A Common Stock on July 12, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On July 12, 2024, Ernest C. Garcia II, a director at Carvana Co., executed multiple sales of Class A Common Stock.
• These transactions were conducted under a Rule 10b5-1 trading plan established on March 11, 2024.
• The sales were executed at varying prices, ranging from approximately $130.695 to $140.65 per share.
• Garcia sold shares directly and through Verde Investments, Inc., an entity he wholly owns and controls.
• After these transactions, Garcia directly owns 0 shares of Class A Common Stock, and Verde Investments, Inc. owns 2,540,814 shares.
• Garcia also has indirect ownership through trusts and entities like the Ernest Irrevocable 2004 Trust III, the Ernest C. Garcia III Multi-Generational Trust III, and ECG II SPE, LLC.
• These entities hold Class A Common Stock, Class B Common Stock, and Class A Units exchangeable for Class A Common Stock.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing detailing insider trading activity. It is neutral in tone and does not inherently indicate positive or negative sentiment. The sales are pre-planned.

Industry Context

Insider sales are common and can be for various reasons, including diversification or personal financial planning. The use of a 10b5-1 plan suggests the sales were pre-planned and not based on current market information.

Stakeholder Impact

• The sales could potentially create short-term downward pressure on the stock price, but the existence of a 10b5-1 plan mitigates concerns about insider information being used for trading.

Key Dates