Used-car retailer Carvana announces first stock split
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Carvana logo is seen in this illustration taken June 27, 2022. REUTERS/Dado Ruvic/Illustration
March 13 (Reuters) - Used-car retailer Carvana said on Friday it would split each of its shares into five in its first stock split, sending its shares up 2.8%.
The Tempe, Arizona-based online retailer, known for its iconic vehicle vending machines, said it aims to keep the shares accessible to all team members.
Companies typically undertake stock splits to lower their share price and make the stock more accessible to a wider pool of investors, particularly retail buyers, which can help boost liquidity and broaden the shareholder base.
Trading is expected to commence on a split-adjusted basis at market open on May 7.
The development comes weeks after Carvana missed analyst estimates for quarterly profit, hurt by rising vehicle reconditioning and depreciation costs resulting from the trickle-down effects of inflation and tariffs.
However, the company stands to benefit from the demand shift towards used cars as inflation-pressured buyers defer new-vehicle purchases.
Including session's gains, Carvana's shares have fallen 29% this year.
Its shares more than doubled in 2025 and the company entered the benchmark S&P 500 index.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shreya Biswas)
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