CVNA implements its first stock split after shares rally from $3.72 in December 2022 to around $400 pre-split.
Carvana executed a 5-for-1 stock split, reducing its share price from approximately $400 to $80. The move follows a more than 10,000% gain since the stock hit an all-time low of $3.72 on December 27, 2022, amid operational turnaround efforts.
The company restructured costs, expanded its reconditioning network, and achieved profitability, driving the recovery. Stock splits typically attract retail investors due to lower nominal prices and signal management confidence in continued share price appreciation.
Historical data suggests stocks undergoing splits tend to outperform the broader market, with Bank of America research indicating 20-25% returns in the following 12 months compared to the average 12% market return.