CVNA - Why Carvana Surged This Week
2023-09-01 16:56:10 ET
Shares of online used car dealer Carvana (NYSE: CVNA) rallied this week, surging by 23.4%, according to data from S&P Global Market Intelligence .
This controversial stock, which has an unusually high short interest , can move around a lot based on positive or negative news. This week, however, was a relatively positive one, as the company completed its debt exchange, the state of Illinois passed a law favorable to online used car sellers, and the company's founder and CEO bought a large amount of stock in the open market.
The week started off positively for Carvana, as it was disclosed that a family trust controlled by CEO Ernest Garcia and his father, who is also a large shareholder, bought $116 million worth of the stock on Aug. 18 at an average price of $37.05 per share. That sizable purchase no doubt fueled both optimism and a bit of a short squeeze to start the week.
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Why Carvana Surged This Week