Carvana (NYSE:CVNA) shares climbed roughly 3% on Friday after the company's board of directors approved a forward 5-for-1 stock split. The move is intended to make whole shares of Carvana stock more accessible to the company's team members, according to the announcement.
Summary
The approved split would be the first in Carvana's corporate history. Management said the decision followed a period of notable stock appreciation and operational performance, and is structured to broaden employee ownership across tenured full-time staff.
Details and timing
Carvana plans to implement the split by amending its Certificate of Incorporation, a change that requires approval by stockholders at the company's Annual Meeting of Stockholders on May 5, 2026. If shareholders approve the amendment, each record holder of both Class A and Class B common stock as of the close of market on May 6 will receive four additional shares for every share held.
Trading in Carvana stock on a split-adjusted basis is expected to begin at the market open on May 7 under the existing trading symbol "CVNA."
Company rationale and workforce programs
Mark Jenkins, Carvana's Chief Financial Officer, said: "This decision follows significant stock appreciation as Carvana reached new all-time records for units and profitability while continuing to lead the industry in growth in 2025." The company emphasized that the split is aimed at improving accessibility to whole shares for team members.
Carvana noted that it offers equity programs to all tenured full-time team members across roles, with eligibility tied to years of service. The company also provides a discounted Employee Stock Purchase Plan to support long-term ownership by team members.
Key points
- Board approved a 5-for-1 forward stock split; shares rose about 3% on the news.
- Implementation requires an amendment to the Certificate of Incorporation and stockholder approval at the May 5, 2026 Annual Meeting.
- The split is intended to increase access to whole shares for tenured full-time team members and complements existing equity programs and a discounted Employee Stock Purchase Plan.
Risks and uncertainties
- The split remains conditional on stockholder approval at the May 5, 2026 Annual Meeting.
- Entitlement to additional shares depends on being a record holder at the close of market on May 6, 2026.
- Split-adjusted trading will only begin as expected at the market open on May 7 if the required approvals are obtained.