Insider Purchase: Director Ann Bordelon Acquires Shares of America's Car-Mart Inc (CRMT)

Article's Main Image

On September 19, 2024, Ann Bordelon, a Director at America's Car-Mart Inc (CRMT, Financial), bought 1,232 shares of the company, as reported in a recent SEC Filing. Following this transaction, the insider now owns a total of 5,003 shares of America's Car-Mart Inc.

America's Car-Mart Inc operates automotive dealerships in several states across the United States. The company focuses on the "integrated auto sales and finance" segment, providing a spectrum of services including vehicle sales and financing.

The transaction occurred when shares of America's Car-Mart Inc were priced at $43 each, resulting in a total investment by the insider of $52,976. The company's market cap following the purchase is approximately $344.274 million.

Over the past year, there have been 11 insider buys and no insider sells at America's Car-Mart Inc. Ann Bordelon's recent acquisition aligns with a pattern of insider purchases, suggesting a positive outlook on the stock by those within the company.

Regarding valuation, the stock's price of $43 compared to the GF Value of $88.28 indicates a price-to-GF-Value ratio of 0.49. This valuation suggests that the stock might be undervalued, classified as "Possible Value Trap, Think Twice" according to GuruFocus metrics.

The GF Value is calculated considering historical trading multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, adjusted for the company's past performance and expected future business outcomes.

This insider purchase could be a significant indicator for investors, reflecting a commitment by company executives and directors to their firm's future prospects.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.