Image Source: Pexels

Key Takeaways

• Carvana shares fell 5% after insider sale filings spooked investors this week.
• Two proposed Form 144 sales accounted for just 0.02% of total shares outstanding.
• Traders are watching upcoming ISM and jobs data for market direction signals.
• Carvana’s S&P 500 inclusion may support stock demand despite the recent volatility.

Carvana Co (CVNA) shares declined 5.2% on Friday, closing at $400.25 and underperforming the broader U.S. market as the new year kicked off. The drop came after filings revealed plans by a trust and an insider to sell small blocks of the stock under SEC Rule 144.

Despite the modest scale of the proposed sales, the decline underscores Carvana’s continued role as a high-volatility stock and a barometer for investor appetite in the used-vehicle sector.

“The market is looking for direction,” said Matthew Maley, chief market strategist at Miller Tabak. “Stocks like Carvana tend to react strongly to single-stock catalysts, especially after the holiday trading lull.”

Insider Sale Sparks Market Attention

Late Friday, filings showed that BHJC Trust disclosed a proposed sale of 10,000 Carvana shares, valued at roughly $4.22 million. The shares were acquired through a stock-option exercise on Jan. 2, with Morgan Stanley Smith Barney serving as the broker.
 

(Click on image to enlarge)

Image Source: KnockoutStocks

Additionally, Carvana insider Mark Jenkins filed a Form 144 for a proposed sale of 12,750 shares, worth approximately $5.38 million, also obtained via stock-option exercise and brokered by Morgan Stanley Smith Barney. Combined, these proposed transactions represent just 0.02% of Carvana’s outstanding shares.

It is important to note that a Form 144 filing signals the intent to sell, but does not indicate that the shares have been sold. Nevertheless, investors often interpret such filings as a reason for heightened caution.

Broader Market Context and Peer Performance

In contrast to Carvana’s decline, other companies in the used-vehicle market posted mixed results on Friday. CarMax (KMX) rose 1.7%, ACV Auctions (ACVA) gained 3.7%, and OPENLANE (OPLN) fell 1.9%. Carvana’s underperformance highlights the stock’s sensitivity to news-driven trading and its role as a volatility gauge.

Since joining the S&P 500 in December, Carvana has drawn increased attention from index funds and passive investment strategies, which can help support demand even amid short-term volatility.

Upcoming Economic Data Could Influence Carvana

Investors are preparing for a packed U.S. economic calendar next week. Key data points include the ISM manufacturing survey on Jan. 5, followed by the U.S. employment report on Jan. 9, and the Consumer Price Index on Jan. 13. These reports can influence rate expectations and, by extension, consumer-finance stocks tied to auto purchases.

Further out, the Federal Reserve’s policy meeting on Jan. 27-28 will remain in focus as markets monitor how officials balance slowing job growth with inflation above target. Carvana-specific catalysts are also on watch, with Nasdaq currently estimating the next earnings report around Feb. 18, when investors will scrutinize retail units sold, gross profit per unit, and adjusted EBITDA.

Technical Levels and Market Sentiment

Friday’s close left Carvana below its 52-week high of $485.33 but well above the 52-week low of $148.25. The $400 level acts as a psychologically significant round-number support, often attracting attention from technical traders.

Analysts suggest that while short-term swings may persist, Carvana’s combination of its S&P 500 inclusion, market position, and upcoming economic data could set the tone for early-year performance. Investors will be watching both macroeconomic signals and company-specific updates closely in the coming weeks.

More By This Author: