America's Car-Mart, Inc. (CRMT)

In the past six months, America's Car-Mart's stock price has been impacted by several key events, primarily related to its financial performance and disclosures. The company reported Q3 Fiscal Year 2025 earnings with total revenue of $325.7 million, an 8.7% increase year-over-year, but the stock price declined by 18.2% the day after the earnings announcement. A delay in filing its annual report due to the need to enhance disclosures related to loan modifications led to a 5.2% drop in the stock price on July 15, 2025, followed by a further 7.5% decline due to the disclosure that certain previously issued financial statements should no longer be relied upon. The company reported its Q1 2026 financial results, revealing a GAAP loss of $0.69 per share, leading to an over 18% drop in the stock price on September 4, 2025. Over the last six months, CRMT stock has fallen by 48.55%.

America's Car-Mart experiences normal seasonal fluctuations in demand and typically sees positive seasonal trends associated with the spring selling season and tax refund season. To support these trends, the company aims to have more inventory on hand during these periods.

America's Car-Mart, Inc., founded in 1981, is an automotive retailer specializing in the used car market in the United States. The company focuses on the "Integrated Auto Sales and Finance" segment, serving customers who may not qualify for traditional financing through its "buy-here, pay-here" model. The company's major products and services include the sale of older model used vehicles and in-house financing, generating revenue from related service contracts, accident protection plans, interest income, and late fees.

America's Car-Mart operates over 150 dealerships across 12 states, primarily concentrated in the South-Central region of the U.S. The company strategically locates its dealerships in secondary and tertiary markets across the United States, focusing on areas with budget-conscious consumers who may have limited access to traditional credit.

America's Car-Mart has established a reputation for accessibility and trust within its target demographic, focusing on customer relationships and vehicle affordability. The company emphasizes superior customer service and building strong relationships. In the past year, the company's reputation has faced scrutiny due to financial reporting issues, including an investigation by Hagens Berman concerning disclosures about risks posed by tariffs and the propriety of its disclosures related to loan modifications.

As of October 27, 2025, institutional ownership of America's Car-Mart, Inc. stands at 87.73%, while insider ownership is 15.1%. Recent insider transactions include significant purchases in September 2024 by individuals such as Adam K. Peterson, Jonathan Z. Buba, and Joshua G. Welch, along with smaller purchases by Dawn C. Morris and Ann G. Bordelon. Sales by insiders, including Douglas W. Campbell Jr. and Vickie D. Judy, were noted in July 2024, and by Dawn C. Morris and Julia K. Davis in May 2024.