Shares of online used-car dealer Carvana Co. recovered some losses from a two-day selloff, after a report showed billionaire Mark Walter's stake in the company was pledged, meaning he wouldn't be able to immediately sell it as he contends with a federal probe of his investment empire.

The report, cited by Bloomberg Markets, indicated that Walter's holdings in Carvana were pledged as collateral, reducing immediate concerns about a large block sale that could further pressure the stock.

Carvana shares had been declining over the previous two sessions amid investor anxiety over potential selling pressure from Walter, who is facing scrutiny from federal investigators examining his broader investment activities.

The company, which went public in 2017, has seen significant volatility in its stock price as investors weigh concerns about its business model and leadership's legal challenges.