(Reuters) – Hindenburg Research said on Thursday that it was small the caravan Co (NYSE: ), accusing the used car retailer of insider trading and accounting manipulation.
“Our investigation revealed the sale of $800 million in debt to a suspicious undisclosed related party, along with details of how accounting manipulation and sloppy underwriting inflated temporary reported income,” the retailer said in its report. Accused
Shares of the Tempe, Arizona-based company closed down about 1.9% on Thursday and fell 3.8% before the bell on Friday.
“The arguments in (Thursday’s) report are deliberately misleading and false and have already been made many times by other short sellers trying to profit from the decline in our stock price,” a Carvana spokesman said. A spokesperson said.
The company, which once faced bankruptcy, topped analysts’ estimates for third-quarter revenue when it last reported in October.
Carvana shares nearly quadrupled in 2024 after its quarterly profits were helped by cost-saving measures, including slowing car purchases and halting some hiring, as it navigates a rough used vehicle market. done
Demand for pre-owned cars has also been improving over the past few months, helping retailers like Carvana.
The company went on an expansion drive during the pandemic to make up for the shortage of new vehicles at the time, but struggled to sell units at a substantial profit.
