ACV Auctions (NASDAQ:ACVA) Shares Down 11.1% Following Weak Earnings

ACV Auctions Inc. (NASDAQ:ACVA) shares fell 11.1% during trading on Monday following a weaker than expected earnings announcement. The company traded as low as $6.01 and last traded at $5.9210. 1,368,246 shares were traded during trading, a decline of 49% from the average session volume of 2,670,811 shares. The stock had previously closed at $6.66.

The company reported ($0.11) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.10). ACV Auctions had a negative net margin of 12.51% and a negative return on equity of 12.94%. The firm had revenue of $183.65 million for the quarter, compared to the consensus estimate of $181.96 million. During the same period in the previous year, the company earned ($0.16) earnings per share. ACV Auctions’s quarterly revenue was up 15.2% compared to the same quarter last year.

Key Headlines Impacting ACV Auctions

Here are the key news stories impacting ACV Auctions this week:

• Positive Sentiment: Barrington Research upgraded ACV from “market perform” to “outperform,” signaling renewed analyst confidence in the recovery story. Read More.
• Positive Sentiment: B. Riley cut its price target slightly (from $17 to $16) but kept a “buy” rating — the new target still implies substantial upside from current levels. Read More.
• Positive Sentiment: Needham reaffirmed its “buy” rating with a $9 price target, another vote of confidence from the sell side. Read More.
• Positive Sentiment: Company guidance: ACV is targeting ~28% adjusted?EBITDA growth in 2026 and plans to accelerate AI?driven product launches — a potential longer?term catalyst if execution follows. Read More.
• Neutral Sentiment: Q4 earnings call and full transcript published — contains detail on margins, AI roadmap, and outlook that investors should read to judge the credibility of guidance and cost plans. Read More.
• Neutral Sentiment: Full earnings call transcript is available for deeper review of management’s commentary and analyst Q&A. Read More.
• Negative Sentiment: Citigroup downgraded ACV from “buy” to “neutral” and cut its price target from $13 to $7, a notable negative read on near?term prospects that likely contributed to selling pressure. Read More.
• Negative Sentiment: Market reaction focused on the EPS miss despite a revenue beat — coverage such as The Motley Fool explains why the earnings miss and ongoing losses triggered the stock drop. Read More.

Analysts Set New Price Targets

Several research firms recently weighed in on ACVA. Jefferies Financial Group lowered ACV Auctions from a “buy” rating to a “hold” rating and set a $9.00 price target on the stock. in a report on Thursday, December 11th. B. Riley Financial cut their price objective on shares of ACV Auctions from $17.00 to $16.00 and set a “buy” rating on the stock in a research report on Tuesday. Citigroup lowered shares of ACV Auctions from a “buy” rating to a “neutral” rating and lowered their target price for the stock from $13.00 to $7.00 in a report on Tuesday. Bank of America reiterated an “underperform” rating and set a $6.00 price target (down from $16.50) on shares of ACV Auctions in a report on Thursday, November 6th. Finally, Barrington Research raised shares of ACV Auctions from a “market perform” rating to an “outperform” rating in a research report on Tuesday. Eight analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, ACV Auctions has an average rating of “Moderate Buy” and an average target price of $11.41.

Insider Buying and Selling

In related news, CEO George Chamoun bought 31,172 shares of ACV Auctions stock in a transaction dated Monday, December 15th. The shares were acquired at an average cost of $7.97 per share, with a total value of $248,440.84. Following the completion of the transaction, the chief executive officer owned 2,618,714 shares in the company, valued at $20,871,150.58. The trade was a 1.20% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 2.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On ACV Auctions

Large investors have recently modified their holdings of the business. Brighton Jones LLC lifted its position in shares of ACV Auctions by 2.1% in the 2nd quarter. Brighton Jones LLC now owns 40,703 shares of the company’s stock worth $660,000 after purchasing an additional 823 shares during the period. Fifth Third Bancorp raised its stake in ACV Auctions by 72.4% in the fourth quarter. Fifth Third Bancorp now owns 3,383 shares of the company’s stock worth $27,000 after buying an additional 1,421 shares in the last quarter. SG Americas Securities LLC lifted its holdings in ACV Auctions by 5.7% during the second quarter. SG Americas Securities LLC now owns 27,302 shares of the company’s stock worth $443,000 after buying an additional 1,467 shares during the period. Covestor Ltd boosted its position in ACV Auctions by 39.9% during the 3rd quarter. Covestor Ltd now owns 5,785 shares of the company’s stock valued at $57,000 after acquiring an additional 1,649 shares in the last quarter. Finally, State of Wisconsin Investment Board increased its holdings in shares of ACV Auctions by 3.1% in the 4th quarter. State of Wisconsin Investment Board now owns 55,897 shares of the company’s stock valued at $448,000 after acquiring an additional 1,692 shares during the period. Institutional investors own 88.55% of the company’s stock.

ACV Auctions Trading Down 4.7%

The company has a current ratio of 1.56, a quick ratio of 1.56 and a debt-to-equity ratio of 0.28. The stock has a market capitalization of $779.07 million, a P/E ratio of -9.23 and a beta of 1.63. The company has a 50-day moving average price of $7.76 and a 200 day moving average price of $8.72.

About ACV Auctions

ACV Auctions operates a digital marketplace that connects automotive dealers through a mobile-first platform for wholesale vehicle auctions. The company’s software enables dealers to list, inspect and bid on used vehicles in real time, leveraging smartphone-based condition reporting, high-resolution imagery and data analytics to streamline the buying and selling process. ACV Auctions also offers subscription-based access to its auction platform, supplemental reconditioning services and financing tools designed to help dealers optimize inventory turn and reduce risk.

Since its founding in 2014, ACV Auctions has expanded its technology offerings beyond core auction services to include dealer management integrations, transportation logistics coordination and title management solutions.