Iridian Asset Management Buys 1.1M Shares of ACV Auctions for $8.97M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
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Source: Fool
- Share Increase: Iridian Asset Management increased its stake in ACV Auctions by 1,108,301 shares during Q4, representing an estimated $8.97 million transaction, reflecting confidence in the company despite a 59.8% drop in stock price over the past year.
- Holding Value: As of quarter-end, Iridian's total stake in ACV Auctions was valued at $23.97 million, accounting for 8.8% of its assets under management, indicating the growing significance of ACV in Iridian's portfolio.
- Financial Performance: ACV Auctions reported record revenue of $200 million in Q3, a 16% year-over-year increase, while marketplace units rose by 10%, demonstrating strong fundamentals despite macroeconomic pressures.
- Future Outlook: Management guided for full-year revenue of up to $760 million and nearly 100% growth in adjusted EBITDA, indicating potential for improved operating leverage, even as the current market valuation remains low.
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Analyst Views on ACVA
Wall Street analysts forecast ACVA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ACVA is 11.32 USD with a low forecast of 6.00 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
6 Buy
3 Hold
1 Sell
Moderate Buy
Current: 8.040
Low
6.00
Averages
11.32
High
20.00
Current: 8.040
Low
6.00
Averages
11.32
High
20.00
About ACVA
ACV Auctions Inc. provides a marketplace for wholesale vehicle transactions and data services that offer vehicle information to its customers. Its marketplace platform leverages data insights and technology to power its digital marketplace and data services, enabling its dealers and commercial partners to buy, sell and value vehicles. Its marketplace platform includes Digital Marketplace, Remarketing Centers, Data Services, and Data and Technology. Digital Marketplace connects buyers and sellers of wholesale vehicles. Remarketing Centers provide an additional channel to provide dealers and commercial partners with auction services. Data Services offers insights into the condition and value of used vehicles for transactions both on and off its marketplace. The Data and Technology helps in vehicle inspections, vehicle intelligence reports, digital marketplace, and operations automation. Its offerings include ACV Auctions, ACV Transportation, ACV Capital, ACV MAX, True360, and ClearCar.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Iridian Asset Management Buys 1.1M Shares of ACV Auctions for $8.97M
- Share Increase: Iridian Asset Management increased its stake in ACV Auctions by 1,108,301 shares during Q4, representing an estimated $8.97 million transaction, reflecting confidence in the company despite a 59.8% drop in stock price over the past year.
- Holding Value: As of quarter-end, Iridian's total stake in ACV Auctions was valued at $23.97 million, accounting for 8.8% of its assets under management, indicating the growing significance of ACV in Iridian's portfolio.
- Financial Performance: ACV Auctions reported record revenue of $200 million in Q3, a 16% year-over-year increase, while marketplace units rose by 10%, demonstrating strong fundamentals despite macroeconomic pressures.
- Future Outlook: Management guided for full-year revenue of up to $760 million and nearly 100% growth in adjusted EBITDA, indicating potential for improved operating leverage, even as the current market valuation remains low.
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Iridian Asset Management Acquires 1.1M Shares of ACV Auctions for $8.97M
- Share Acquisition: Iridian Asset Management increased its stake in ACV Auctions by 1,108,301 shares in Q4 2023, with an estimated transaction size of $8.97 million, indicating sustained confidence in the company.
- Market Value Growth: Following the acquisition, Iridian's total holdings in ACV reached 2,989,152 shares valued at $23.97 million, reflecting a net increase of $5.33 million due to both new purchases and share price appreciation.
- Performance Metrics: Despite ACV Auctions' stock price declining by 59.8% over the past year, the company reported record revenue of $200 million in Q3, a 16% year-over-year increase, demonstrating its ability to scale even in challenging market conditions.
- Future Outlook: Management guided for full-year revenue of up to $760 million and nearly 100% growth in adjusted EBITDA, signaling improving operating leverage despite macroeconomic pressures.
Continue Reading