Citigroup Downgrades ACV Auctions (NASDAQ:ACVA) to Neutral

ACV Auctions (NASDAQ:ACVA) was downgraded by research analysts at Citigroup from a “buy” rating to a “neutral” rating in a research report issued on Tuesday, Marketbeat reports. They currently have a $7.00 price objective on the stock, down from their prior price objective of $13.00. Citigroup’s price target would suggest a potential upside of 54.70% from the stock’s current price.

ACVA has been the topic of a number of other research reports. The Goldman Sachs Group reduced their price target on ACV Auctions from $21.00 to $13.00 and set a “buy” rating on the stock in a research report on Friday, November 7th. JPMorgan Chase & Co. reduced their target price on ACV Auctions from $18.00 to $11.00 and set an “overweight” rating on the stock in a report on Thursday, November 6th. Barclays increased their target price on shares of ACV Auctions to $8.00 and gave the company an “equal weight” rating in a research report on Wednesday, January 21st. Jefferies Financial Group lowered shares of ACV Auctions from a “buy” rating to a “hold” rating and set a $9.00 price target for the company. in a report on Thursday, December 11th. Finally, Royal Bank Of Canada raised shares of ACV Auctions to an “outperform” rating in a research note on Tuesday. Eight research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $11.41.

ACV Auctions Trading Down 4.7%

Shares of NASDAQ ACVA opened at $4.53 on Tuesday. The firm has a 50 day moving average price of $7.76 and a two-hundred day moving average price of $8.72. The stock has a market cap of $779.07 million, a P/E ratio of -9.23 and a beta of 1.63. ACV Auctions has a 52-week low of $4.45 and a 52-week high of $17.54. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.56 and a current ratio of 1.56.

ACV Auctions (NASDAQ:ACVA) last issued its quarterly earnings data on Monday, February 23rd. The company reported ($0.11) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.10). The business had revenue of $183.65 million during the quarter, compared to the consensus estimate of $181.96 million. ACV Auctions had a negative return on equity of 12.94% and a negative net margin of 12.51%.The business’s revenue for the quarter was up 15.2% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.16) EPS. As a group, equities analysts forecast that ACV Auctions will post -0.07 EPS for the current year.

Insiders Place Their Bets

In other news, CEO George Chamoun purchased 31,172 shares of the business’s stock in a transaction on Monday, December 15th. The shares were acquired at an average price of $7.97 per share, for a total transaction of $248,440.84. Following the completion of the acquisition, the chief executive officer owned 2,618,714 shares in the company, valued at approximately $20,871,150.58. The trade was a 1.20% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 2.90% of the company’s stock.

Hedge Funds Weigh In On ACV Auctions

Institutional investors have recently modified their holdings of the company. Virtu Financial LLC bought a new position in shares of ACV Auctions in the 4th quarter worth $96,000. Invesco Ltd. increased its stake in ACV Auctions by 11.3% during the 4th quarter. Invesco Ltd. now owns 182,256 shares of the company’s stock valued at $1,462,000 after purchasing an additional 18,573 shares in the last quarter. Corient Private Wealth LLC acquired a new position in ACV Auctions during the fourth quarter worth $89,000. Mercer Global Advisors Inc. ADV bought a new position in shares of ACV Auctions in the fourth quarter valued at $221,000. Finally, Veradace Capital Management LLC bought a new position in shares of ACV Auctions in the fourth quarter valued at $6,420,000. 88.55% of the stock is owned by institutional investors and hedge funds.

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.

ACV Auctions Company Profile

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.