TLDR
- The board of directors at Carvana has greenlit a 5-for-1 forward stock split, marking a historic first for the company, awaiting shareholder approval on May 5.
- Should shareholders approve, split-adjusted trading commences on May 7 under the same ticker symbol “CVNA.”
- The decision aims to increase stock accessibility for retail investors and company employees.
- Shares of CVNA climbed approximately 3% during premarket hours following the news.
- Despite a 31% decline in 2026, the stock has delivered 62% gains over the trailing twelve months.
The online used-car retailer Carvana has received board authorization for a 5-for-1 forward stock split — marking a first in the company’s public trading history. News of the split drove shares higher by roughly 3% in early premarket activity, pushing the price to approximately $302.
Carvana Co., CVNA
However, the split requires final approval from shareholders. The company has scheduled a voting session during its Annual Meeting of Stockholders on May 5, 2026. Upon approval, stockholders holding Class A and Class B common shares as of the close of trading on May 6 will be issued four additional shares for each existing share owned. Split-adjusted trading is slated to commence on May 7.
Implementation of the split will occur via an amendment to the company’s Certificate of Incorporation.
Chief Financial Officer Mark Jenkins cited the organization’s robust 2025 performance as the driving force behind this strategic decision. Last year, Carvana achieved unprecedented milestones in both vehicle sales volume and profitability while outpacing industry competitors in growth metrics.
Chief Executive Officer Ernie Garcia emphasized the employee-focused rationale for the split. The company provides equity compensation opportunities to all full-time employees based on their length of service and maintains a discounted Employee Stock Purchase Plan.
“We’re proud to have an incredible team that truly owns outcomes,” Garcia said in a statement.
A Volatile Trading Journey
Carvana made its market debut in 2017 with shares priced at $15. The stock skyrocketed beyond $300 in 2021 amid the pandemic-driven surge in online vehicle purchases, before plummeting to approximately $5 by late 2022. That year brought a staggering $1.6 billion loss for the organization.
The turnaround has been remarkable. Carvana achieved profitability once again and has demonstrated rapid expansion in both revenue and earnings, capturing greater market share within the highly fragmented used vehicle sector. The stock reached an all-time closing peak of $478.45 on January 22, 2026.
The current year has presented challenges, however. Shares have declined 31% year-to-date. A lackluster quarterly report released in February, combined with a short-seller report claiming undisclosed related-party transactions, created headwinds for the stock. Carvana strongly refuted these claims, characterizing them as “inaccurate and intentionally misleading.”
Looking at a twelve-month timeframe, CVNA shares remain up 62%.
Breaking Down 2025 Performance
During 2025, Carvana moved nearly 600,000 retail vehicles. The organization achieved an 11% total EBITDA margin and recorded $1.9 billion in net income for the full year — both company records.
Last month, CEO Garcia reaffirmed the company’s ambitious long-term objectives: reaching 3 million annual retail vehicle sales with a 13.5% adjusted EBITDA margin, with a projected timeline between 2030 and 2035.
Based on the current premarket valuation near $302, the post-split share price would settle around $60.40.
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Source: https://blockonomi.com/carvana-cvna-stock-climbs-3-on-historic-5-for-1-stock-split-approval/