Why ACV Auctions Stock Dived by Almost 15% This Week

A tough summer for wholesale automobile marketplace operator ACV Auctions (NYSE: ACVA) stretched out into the first full week of September. According to data compiled by S&P Global Market Intelligence, the company's stock price took a sub-15% tumble over that stretch. Lingering downbeat sentiment on the company was exacerbated by news of a client's bankruptcy filing. Before market open Wednesday, ACV divulged in a regulatory document that an unnamed customer of its ACV Capital subsidiary had filed for chapter 7 bankruptcy (in which a company, overburdened by debt, sells off assets to reduce the load). ACV Capital had provided a line of credit to this client, who was unnamed. The outstanding amount of the credit line was roughly $18 million, the company said.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool