Insider Trades

Carvana's Ernest Garcia II Plans To Sell 10 Million Shares Worth $682.9 Million

The largest shareholder of the used-car retailer filed notice of the planned sale, with Citigroup Global Markets as broker.

Ernest Garcia II plans to sell 10 million shares of Carvana Class A common stock, a block the filing values at $682.9 million. He filed the notice, known as a Form 144, on Friday.

Terms of the planned sale

The notice names Citigroup Global Markets as the broker and gives October 30 as the approximate sale date. The shares come from converting units into stock, which Garcia acquired from the company on April 27, 2017, and the form lists him as a holder of more than 10% of the shares.

Carvana shares closed Friday at $68.29. At Thursday's close they were down about 19% this year, within a 52-week range of $54.46 to $97.38.

A record quarter just reported

Carvana runs an e-commerce platform for buying and selling used cars. Customers browse online inventory, get an automated offer on their own vehicle and can arrange financing, and the company delivers to their home or to one of its car vending machines. Retail vehicle sales drive most of its revenue.

Garcia, who is also Carvana's CEO according to a Yahoo Finance report, spoke on the third-quarter call. Carvana reported revenue up 42% to $8.04 billion and a quarterly record of $800 million in adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization. It sold 217,385 retail vehicles in the quarter, up 39% from a year earlier, and said it expects 2026 adjusted EBITDA near the upper end of its $2.7 billion to $3 billion outlook.

Whether the sale goes through on or near October 30 will show up in a later ownership filing.