Carvana (NYSE: CVNA) shares are under pressure again, shedding 11.76% over the past five days, closing at $293.55 after a sharp -$39.13 decline.
But behind the headlines, a far more unsettling signal is flashing red: company insiders have sold more than $400 million worth of shares since April, with June alone delivering a fresh wave of high-volume executive exits.
The filings tell a story that’s hard to ignore.
Since early April, Chair and CEO Ernest C. Garcia III has been relentlessly offloading shares in a series of transactions that now appear systematic. In June alone, Garcia executed nine separate sales, often unloading blocks of 20,000 shares at a time, raking in tens of millions. Notably, a June 6 sale of 150,000 shares at $346.22 netted him over $51.9 million—a single-day transaction that cleared out his reported holdings entirely.
He wasn’t alone. Other top brass joined the selling spree.
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CVNA stock insider sales
COO Benjamin Huston, CFO Mark Jenkins, CBO Ryan Keeton, and multiple division presidents each liquidated substantial amounts. One name that stands out is Ernest C. Garcia II, who dumped multiple 100,000-share tranches in both May and June, totaling at least $129 million at an average price above $330 per share.
In total, insider sales since April easily top $400 million, according to aggregated Form 4 filings.
This scale of insider selling, especially by a CEO raises serious questions. While executives may sell for personal reasons, they almost never unload at this volume unless they expect limited upside. And when those sales cluster at local highs, they’re damning.
For retail investors, this could be a wake-up call. Carvana stock has staged a massive rally from its 2023 lows, but insiders appear to be cashing out into strength, not showing confidence in future gains.
With no new insider purchases to counterbalance the selling, and a stock down double digits on the week, traders may begin to wonder: if the leadership team is rushing for the exits, should shareholders do the same?
