Ernest Garcia II Sells $33.5 Million Worth Of Carvana Stock Amid 165% Rally
Ernest C. Garcia II, a major shareholder in Carvana Co. (NYSE:CVNA), has sold shares worth $33.5 million.
What Happened: Garcia, who is a 10% owner of Carvana, sold 91,332 shares of Class A Common Stock on July 25 and July 28, 2025, for approximately $33.5 million, reported Investing.com on Tuesday.
The shares were sold in multiple transactions, with prices ranging from $332.95 to $339.35 on July 25 and $333.72 to $338.45 on July 28. These sales were executed under a Rule 10b5-1 trading plan that was established by Ernest C. Garcia II and Elizabeth Joanne Garcia on Dec. 13, 2024.
On both July 25 and July 28, Garcia converted 50,000 Class A Common Units into Class A Common Stock. Carvana is currently trading at a price-to-earnings (P/E) ratio of 106, signaling strong growth expectations from investors.
Garcia's stock sale comes as Carvana rolls out several positive initiatives, including plans to expand its operations by adding Inspection and Reconditioning Center capabilities at its ADESA Seattle auction site.
This expansion is expected to boost the company's nationwide reconditioning capacity, serving both retail and wholesale customers across the Pacific Northwest.
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Why It Matters: Carvana’s stock has seen a remarkable 165.42% return over the past year, with the company now commanding a market capitalization of $72.06 billion.
Despite the recent share sales, Carvana’s stock has been performing exceptionally well.
Analysts have also shown confidence in Carvana’s future, with firms like Citigroup Inc. (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), and Stephens raising their price targets for the company, citing stronger-than-expected sales data and operational expansions.
Research firm BTIG also maintained a Buy rating with a $395 price target, noting that Carvana's vehicle discounting has returned to pre-tariff scare levels.
Price Action: Carvana shares inched up 0.05% on Tuesday, closing at $336.50, and rose another 0.15% in premarket trading on Wednesday, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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