Are Insiders Selling US Stocks of Car-Mart, Inc. (NASDAQ: CRMT)?
We often see insiders buying back shares of companies that are performing well over the long term. On the flip side, we would be remiss not to mention that insider selling is known to precede tough times for a business. We will therefore examine whether insiders have bought or sold shares of America’s Car-Mart, Inc. (NASDAQ: CRMT).
What is insider selling?
It is quite normal to see company insiders, such as board members, trading company shares from time to time. However, there are rules governing insider trading and certain information is required.
Insider trading is not the most important thing when it comes to investing for the long term. But it makes perfect sense to keep an eye on what insiders are doing. For example, a Columbia University study found that “insiders are more likely to engage in open market purchases of their own company stocks when the company is about to reveal new deals with customers and suppliers.”
See our latest review for America’s Car-Mart
Car-Mart insider trading in the United States in the past year
In the past twelve months, the biggest single sale by an insider was when COO Leonard Walthall sold US $ 685,000 worth of shares at a price of US $ 171 per share. We usually don’t like to see insider sales, but the lower the selling price, the more it concerns us. The silver lining is that this drop took place above the last price (US $ 138). It is therefore difficult to draw a solid conclusion.
U.S. Car-Mart insiders haven’t bought any shares in the past year. The chart below shows insider trading (by businesses and individuals) over the past year. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!
If you like to buy stocks that insiders buy rather than sell, then you might love this free list of companies. (Hint: insiders bought them).
US Car-Mart insiders sell their shares
The past three months have seen significant insider sales at America’s Car-Mart. In total, COO Leonard Walthall sold US $ 685,000 worth of stock during this period, and we did not record any purchases. This may suggest that some insiders think stocks aren’t cheap.
Many investors like to check how well a company is owned by insiders. Strong insider ownership often makes company management more concerned with the interests of shareholders. Insiders own 7.0% of the US shares of Car-Mart, worth about $ 64 million. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
What might America’s Car-Mart insider trading tell us?
An insider recently sold US stocks of Car-Mart, but they didn’t buy any. And there has been no purchase to comfort us in the past year. On the positive side, America’s Car-Mart is making money and increasing its profits. Insider ownership is not particularly high, so this analysis makes us cautious about the company. So we would only buy after careful consideration. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. At Simply Wall St, we found that America’s Car-Mart has 3 warning signs (1 is a bit unpleasant!) Which deserve your attention before going any further in your analysis.
But beware : America’s Car-Mart may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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