Americas CarMart Director Bordelon buys $52,976 worth of company stock by Investing.com

Americas CarMart Inc. (NASDAQ:CRMT) reported that Director Ann G. Bordelon purchased shares in the company valued at a total of $52,976. The acquisition, which took place on September 19, is a notable vote of confidence in the used car dealer’s future prospects.

According to the filing, Bordelon bought 1,232 shares of Americas CarMart common stock at a price of $43.00 per share. Following this transaction, the director now directly owns a total of 5,003 shares in the company. The acquisition was made as part of the underwritten public offering of the company’s common stock.

Investors often watch insider trades because they can provide insight into executives’ perspective on the company’s valuation and future performance. A director’s purchase of stock can be interpreted as a positive signal that they believe in the company’s potential for growth and profitability.

The transaction was disclosed in a regulatory filing with the Securities and Exchange Commission. The details of the purchase, including the number of shares purchased and the price paid per share, are typically analyzed by market participants seeking to understand insider behavior and its implications for stock value.

Americas CarMart operates auto dealerships in several states and is known for offering customers a “buy here, pay here” financing option. With this latest insider purchase, investors will be watching the company’s performance in the coming quarters and whether other insiders follow suit in purchasing shares.

In other recent news, America’s Car-Mart (NASDAQ: ), a major player in the used car market, reported a 5.2% decline in revenue in the first quarter of fiscal 2025, mainly due to a decline in units sold retail. However, the company reported an increase in website traffic and a reduction in average retail price, indicating strong consumer demand. Jefferies revised its price target on the company’s stock to $45 from $68 previously, while maintaining a Hold rating. This adjustment follows a recent equity raise by America’s Car-Mart, which raised $73 million by issuing 1.7 million shares. The company also revised its credit facilities, bringing in Colonial Underwriting as a new guarantor and reducing total permitted borrowings to $320 million. In a strategic move, America’s Car-Mart has partnered with Cox Automotive to improve accessibility and gross profit margins. These are just a few of the recent developments as the company continues to navigate the dynamic automotive retail market.

InvestingPro Insights

Following the acquisition by Director Ann G. Bordelon, Americas CarMart Inc. (NASDAQ:CRMT) presents a mixed financial picture, according to InvestingPro data and insights. The company has a market capitalization of approximately $272.89 million, indicating a modest size in the industry. Despite insider confidence, the company’s P/E ratio is -7.37, with a slightly adjusted P/E ratio for the trailing twelve months through Q1 2023 of -7.48, reflecting market skepticism about earnings future

The gross profit margin for Americas CarMart during the same period is 14.96%, which could be a concern for investors looking for stronger profitability indicators. Moreover, the company’s shares have experienced significant volatility with a price return of -51.59% over the past year, which could raise the caution of potential investors regarding the stability of its stock.

Two InvestingPro tips highlight critical considerations for Americas CarMart: The company is operating with a significant debt burden, and analysts do not anticipate the company will be profitable this year. This information is crucial for investors interpreting recent insider stock purchases and assessing the company’s future financial health.

For those interested in a deeper dive into Americas CarMart’s financials and performance metrics, InvestingPro offers additional advice, with a total of 18 InvestingPro tips available for CRMT at https://www.investing.com/pro/CRMT. These tips provide valuable context and can guide investment decisions for those who follow the company’s trajectory closely.

This article was generated with AI support and reviewed by an editor. For more information, see T&C.