ACV Auctions Inc. (NASDAQ: ACVA) stock jumped 3.60% on Friday to $7.49 against a previous-day closing price of $7.23. With 1.2 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.77 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $7.60 whereas the lowest price it dropped to was $7.21. The 52-week range on ACVA shows that it touched its highest point at $24.88 and its lowest point at $6.10 during that stretch. It currently has a 1-year price target of $17.77.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ACVA was up-trending over the past week, with a rise of 8.39%, but this was up by 8.39% over a month. Three-month performance dropped to -39.25% while six-month performance fell -43.85%. The stock lost -67.48% in the past year, while it has lost -60.24% so far this year. A look at the trailing 12-month EPS for ACVA yields -0.58 with Next year EPS estimates of -0.51. For the next quarter, that number is -0.18. This implies an EPS growth rate of -134.40% for this year and 26.80% for next year.
Float and Shares Shorts:
At present, 156.10 million ACVA shares are outstanding with a float of 111.29 million shares on hand for trading. On Jul 14, 2022, short shares totaled 7.4 million, which was 4.71% higher than short shares on Jun 14, 2022. In addition to Mr. George G. Chamoun as the firm’s CEO & Director, Mr. Vikas Mehta serves as its Chief Operating Officer.
Through their ownership of 84.96% of ACVA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.25% of ACVA, in contrast to 38.35% held by mutual funds. Shares owned by individuals account for 1.81%. As the largest shareholder in ACVA with 10.93% of the stake, ArrowMark Colorado Holdings LLC holds 12,334,054 shares worth 12,334,054. A second-largest stockholder of ACVA, The Vanguard Group, Inc., holds 9,042,160 shares, controlling over 8.01% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in ACVA, holding 6,635,567 shares or 5.88% stake. With a 2.94% stake in ACVA, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 3,319,746 shares are owned by the mutual fund manager. The Vanguard Explorer Fund, which owns about 2.76% of ACVA stock, is the second-largest Mutual Fund holder. It holds 3,115,117 shares valued at 20.37 million. Vanguard Small Cap Index Fund holds 2.52% of the stake in ACVA, owning 2,840,695 shares worth 18.58 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ACVA since 16 analysts follow the stock currently. There are 14 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ACVA analysts setting a high price target of $28.00 and a low target of $9.00, the average target price over the next 12 months is $17.36. Based on these targets, ACVA could surge 273.83% to reach the target high and rise by 20.16% to reach the target low. Reaching the average price target will result in a growth of 131.78% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ACVA will report FY 2022 earnings on 02/15/2023. Analysts have provided yearly estimates in a range of -$0.36 being high and -$0.77 being low. For ACVA, this leads to a yearly average estimate of -$0.52. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. ACV Auctions Inc. surprised analysts by $0.02 when it reported -$0.13 EPS against a consensus estimate of -$0.15. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is -$0.09 and the low estimate is -$0.20. The average estimate for the next quarter is thus -$0.14.
Summary of Insider Activity:
Insiders traded ACVA stock several times over the past three months with 2 Buys and 7 Sells. In these transactions, 1,987,693 shares were bought while 2,010,641 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 59 over the past year. The total number of shares bought during that period was 13,626,731 while 13,439,847 shares were sold.