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

Ernest Garcia II, a director and 10% owner of Carvana Co., sold a significant number of Class A Common Stock shares between May 6th and May 7th, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• Ernest Garcia II, along with related entities, sold shares of Carvana (CVNA) Class A Common Stock on May 6th and 7th, 2024.
• The sales were executed under a Rule 10b5-1 trading plan adopted on March 11, 2024.
• On May 6th, shares were sold at weighted average prices ranging from $123.3964 to $128.8553.
• On May 7th, shares were sold at weighted average prices ranging from $117.1806 to $123.5688.
• The total number of Class A Common Stock shares directly owned by Ernest Garcia II after the reported transactions is 2,917,500.
• Verde Investments, Inc., Ernest Irrevocable 2004 Trust III, and Ernest C. Garcia III Multi-Generational Trust III also hold Class A Common Stock.
• Additionally, these entities and ECG II SPE, LLC hold Class B Common Stock and Class A Units exchangeable for Class A shares.

Sentiment

Score: 5

Explanation: The document is a standard SEC filing related to stock sales. It doesn't inherently convey positive or negative sentiment, but the market's reaction to the news of the sale could influence sentiment.

Risks

• The sale of shares by a major shareholder could be perceived negatively by the market.
• The reliance on a 10b5-1 trading plan suggests a predetermined strategy for selling shares, which could continue in the future.

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 is a standard practice.

Stakeholder Impact

• Shareholders may react to the news of the share sales.
• The sales could potentially impact the stock price in the short term.

Key Dates