ACV Auctions Draws a $9 Million Vote of Confidence Despite a 60% Stock Drop

2 hours ago 1

Jonathan Ponciano, The Motley Fool

Sat, January 24, 2026 astatine 11:24 AM CST 4 min read

Iridian Asset Management added 1,108,301 shares of ACV Auctions; the estimated commercialized size was $8.97 cardinal (based connected quarterly mean pricing).
Meanwhile, the quarter-end presumption worth accrued by $5.33 million, reflecting some caller purchases and stock terms movement.
The post-transaction involvement was 2,989,152 shares valued astatine $23.97 million.
These 10 stocks could mint the adjacent question of millionaires ›

On January 23, Iridian Asset Management disclosed a bargain of 1,108,301 shares of ACV Auctions (NYSE:ACVA), an estimated $8.97 cardinal transaction based connected quarterly mean pricing.

According to a SEC filing dated January 23, Iridian Asset Management accrued its presumption successful ACV Auctions (NYSE:ACVA) by 1,108,301 shares during the 4th quarter. The estimated worth of the further shares is $8.97 million, based connected the mean closing terms for the period. The fund’s quarter-end involvement was valued astatine $23.97 million, a nett presumption alteration of $5.33 cardinal that includes some caller purchases and changes successful stock price.

Top 5 holdings aft the filing:

NYSE:ACVA: $23.97 cardinal (8.8% of AUM)
NYSE:HLF: $23.67 cardinal (8.7% of AUM)
NYSE:HGV: $20.81 cardinal (7.7% of AUM)
NYSE:POST: $16.75 cardinal (6.2% of AUM)
NYSE:LAD: $15.68 cardinal (5.8% of AUM)

As of January 22, ACV Auctions shares were priced astatine $8.62, down 59.8% implicit the past twelvemonth and vastly underperforming the S&P 500’s astir 14% summation successful the aforesaid period.

Metric

Value

Price (as of January 22)	$8.62
Market capitalization	$1.5 billion
Revenue (TTM)	$735.48 million
Net income (TTM)	($72.72 million)

ACV Auctions offers a integer wholesale conveyance auction platform, conveyance information information services, and lawsuit financing solutions.
The institution operates a integer marketplace that connects buyers and sellers for the online auction of wholesale vehicles.
It serves automotive dealers, fleet operators, and different nonrecreational conveyance buyers and sellers crossed the United States.

ACV Auctions is simply a starring integer marketplace specializing successful wholesale conveyance auctions and related information services. Its level streamlines the process for nonrecreational buyers and sellers, providing transparency and ratio successful the automotive remarketing industry.

ACV Auctions has spent the past twelvemonth getting punished alongside a weakening used-car market, yet the underlying concern has continued to standard successful ways the banal terms doesn’t reflect. In the 3rd quarter, ACV delivered grounds gross of $200 million, up 16% twelvemonth implicit year, portion marketplace units roseate 10% to much than 218,000 vehicles. Plus, adjusted EBITDA astir doubled to $19 million, adjacent arsenic GAAP losses persisted, totaling $24 cardinal for the quarter. Management guided for full-year gross of up to $760 cardinal and astir 100% maturation successful adjusted EBITDA, signaling improving operating leverage contempt macro pressure.

Iridian’s added involvement solidifies ACV arsenic its largest holding astatine astir 9% of assets, up of names similar Hilton Grand Vacations and Herbalife. Ultimately, ACV is not priced for sustained execution, yet it continues to grow volume, deepen services revenue, and make operating currency flow. If wholesale conditions normalize, today’s valuation could look acold little pessimistic than the marketplace implies.