Carvana's Largest Shareholder Files to Sell $245 Million in Stock Amid Insider Selling Concerns

Carvana's largest shareholder, Ernie Garcia II, is filing to sell $245 million in shares, extending his recent stock sales. His son, CEO Ernest Garcia III, sold $192 million in shares in May. Insider sales are closely watched by investors, with the stock's value tripling in 12 months. Short seller Jim Chanos has criticized the "dramatic increase in insider selling" at Carvana, calling it overvalued. The Garcia family controls 92% of Class B shares and 80% of voting control.

Carvana Co.'s largest shareholder, Ernie Garcia II, has filed to sell $245 million in shares, extending his recent run of stock sales. This move follows a series of significant sales by the elder Garcia and his son, CEO Ernest Garcia III, who sold $192 million in shares in May. The insider selling, closely watched by investors, comes as Carvana's stock value has nearly tripled over the past year [1].

Garcia II's sales over the past six weeks have reached $515 million, on top of the $1.4 billion in shares he sold between April and November 2024. His son, Ernest Garcia III, continues to hold a stake valued at approximately $10.5 billion. The elder Garcia still owns more than 44 million Carvana shares, valued at almost $15.5 billion, after the planned sales [1].

The trades by the Garcia family are closely monitored by investors, who have seen the stock's value surge. Short seller Jim Chanos has criticized the "dramatic increase in insider selling" at Carvana, suggesting that the company's valuation may be bloated for an auto retailer and loan originator [1].

Carvana's stock has experienced a significant rebound, trading down 1.5% on July 10, 2025, after reaching a high of $364.00 in May 2025. The company reported $1.51 EPS for the quarter, beating analyst estimates by $0.76. Carvana's revenue for the quarter was $4.23 billion, up 38.3% year-over-year [2].

Several hedge funds have recently adjusted their positions in Carvana, with Brooklyn Investment Group boosting its stake by 961.5% in the first quarter. Analysts have given the stock a "Moderate Buy" rating, with an average price target of $303.59 [2].

Carvana's strong sales and operational performance have led Citi to raise its price target on the stock to $415.00, citing proprietary data showing stronger-than-expected sales. The company's retail unit sales on Carvana.com in the second quarter were approximately 142,000 units, representing a 40% year-over-year increase and 6% quarter-over-quarter growth [3].

Despite the recent insider selling, Carvana's stock remains a focus of investor interest, with analysts maintaining a positive outlook on the company's future prospects.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-11/carvana-s-top-shareholder-files-to-sell-245-million-in-stock
[2] https://www.marketbeat.com/instant-alerts/ernest-c-garcia-iii-sells-248-shares-of-carvana-co-nysecvna-stock-2025-07-10/
[3] https://uk.investing.com/news/analyst-ratings/citi-raises-carvana-stock-price-target-to-415-on-strong-sales-tracking-93CH-4160342