Carvana (NYSE: CVNA) CEO updates direct and trust shareholdings after RSU tax withholding
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
CARVANA CO. director and CEO Ernest C. Garcia III reported routine equity updates, mainly a tax-related share withholding tied to restricted stock units. The filing shows that 7,067 shares of Class A Common Stock were withheld to cover taxes upon RSU vesting.
After this tax-withholding disposition, Garcia directly holds 4,603,303 Class A shares. Trusts associated with him hold additional shares, including 1,750,000 shares in the Ernest Irrevocable 2004 Trust III and 2,250,000 shares in the Ernest C. Garcia III Multi-Generational Trust III. All reported amounts reflect a prior five-for-one forward stock split.
Positive
- None.
Negative
- None.
Insider Trade Summary
3 transactions reported
Mixed
3 txns
Insider
GARCIA ERNEST C. III
Role
Chief Executive Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Tax Withholding | Class A Common Stock | 7,067 | $71.00 | $502K |
| holding | Class A Common Stock | -- | -- | -- |
| holding | Class A Common Stock | -- | -- | -- |
Holdings After Transaction:
Class A Common Stock — 4,603,303 shares (Direct, null);
Class A Common Stock — 2,250,000 shares (Indirect, Ernest C. Garcia III Multi-Generational Trust III)
Footnotes (1)
- Represents total number of shares of Class A Common Stock of the Issuer withheld for taxes upon vesting of restricted stock units pursuant to various awards. All amounts reflect the five for one forward stock split conducted by the issuer on May 7, 2026. These shares of Class A common stock are held directly by the Ernest C. Garcia III Multi-Generational Trust III (the "Multi-Generational Trust"). The Reporting Person is the Investment Trustee and Co-Administrative Trustee of the Multi-Generational Trust. These shares of Class A common stock are held directly by the Ernest Irrevocable 2004 Trust III (the "Irrevocable Trust"). The Reporting Person is the Investment Trustee and Co-Administrative Trustee of the Irrevocable Trust.
Key Figures
Tax-withheld shares: 7,067 shares
Direct holdings: 4,603,303 shares
Irrevocable Trust holdings: 1,750,000 shares
+2 more
5 metrics
Tax-withheld shares
7,067 shares
Shares withheld for taxes on RSU vesting
Direct holdings
4,603,303 shares
Class A Common Stock held directly after transaction
Irrevocable Trust holdings
1,750,000 shares
Ernest Irrevocable 2004 Trust III balance
Multi-Generational Trust holdings
2,250,000 shares
Ernest C. Garcia III Multi-Generational Trust III balance
Stock split ratio
5-for-1
Forward stock split effective May 7, 2026
Key Terms
restricted stock units, tax-withholding disposition, forward stock split, Multi-Generational Trust, +1 more
5 terms
restricted stock units financial
"shares of Class A Common Stock of the Issuer withheld for taxes upon vesting of restricted stock units"
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
tax-withholding disposition financial
"transaction_action": "tax-withholding disposition""
A tax-withholding disposition is an event or transaction—such as selling or transferring securities, exercising options, or receiving compensation—that triggers a requirement to hold back part of the payment and remit it to tax authorities. It matters to investors because it reduces the cash they receive immediately and can change the timing and amount of taxable income, like a cashier taking a portion of your sale proceeds to pay taxes before you get the rest.
forward stock split financial
"reflect the five for one forward stock split conducted by the issuer"
A forward stock split is when a company increases the number of its shares by dividing each existing share into smaller parts. This makes the stock price lower and more affordable for investors, similar to splitting a pizza into more slices so everyone can get a smaller piece. It doesn't change the company's total value, just how it's divided among shareholders.
Multi-Generational Trust financial
"held directly by the Ernest C. Garcia III Multi-Generational Trust III"
Irrevocable Trust financial
"held directly by the Ernest Irrevocable 2004 Trust III"
An irrevocable trust is a legal arrangement where an owner transfers assets into a separate entity managed by a trustee and gives up the power to modify or reclaim those assets. For investors it matters because putting stock or other holdings into such a trust can change who controls and benefits from the assets, affect taxes and creditor protection, and influence how easy it is to sell or value those holdings—like placing valuables in a locked safe overseen by someone else.
FAQ
What did Carvana (CVNA) CEO Ernest C. Garcia III report in this Form 4?
Ernest C. Garcia III reported a tax-related share withholding and updated holdings in Carvana Class A stock. The filing records 7,067 shares withheld to cover taxes on vested RSUs and discloses his direct and trust-held share balances after a five-for-one stock split.
Does this Carvana (CVNA) Form 4 indicate open-market stock sales by the CEO?
The Form 4 does not report open-market sales. It records 7,067 shares withheld to pay taxes on restricted stock unit vesting, categorized as a tax-withholding disposition. This mechanism uses shares to settle tax liabilities rather than reflecting discretionary selling in the market.