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

America's Car-Mart's stock price declined by 49.29% between January 2, 2025, and December 31, 2025. In September 2025, the company reported a first-quarter fiscal year 2026 loss with a decline in same-store sales, but credit applications increased and a term securitization was completed. In October 2025, a $300 million term loan was secured to enhance capital structure. Second-quarter fiscal year 2026 results in December 2025 revealed an adjusted loss per share and a net loss, leading to a stock drop and a lowered price target from Jefferies. A term securitization was completed in December 2025, and the stock fell after being removed from the S&P Retail Select Industry Index.

Demand for America's Car-Mart's products exhibits seasonality, with the company aiming to normalize inventory for strong demand, especially during tax season. Wholesale pricing typically declines post-tax season, but this was not observed in the first quarter of fiscal year 2026 due to tariffs and elevated pricing. Consumer demand for affordable transportation remains strong, as shown by growth in credit applications.

America's Car-Mart, Inc. (CRMT) operates in the 'Buy Here/Pay Here' used car market, selling older vehicles and providing in-house financing to customers with credit challenges. The company generates revenue from vehicle sales, interest income, service contracts, and accident protection plans, operating within the Consumer Cyclicals sector.

America's Car-Mart operates over 135 dealerships across 12 states, mainly in smaller cities in the South-Central United States. The company consolidated 18 dealerships into higher-performing stores to improve efficiency and profitability.

America's Car-Mart is known for providing affordable transportation to budget-conscious consumers and emphasizes customer relationships. Dealership consolidations aim to improve returns while maintaining customer experience. Recent financial losses could impact investor and public perception.

Institutional investors hold between 85.35% and 89.10% of America's Car-Mart's stock, with major holders including Magnolia Group, LLC, Nantahala Capital Management, LLC, BlackRock, Inc., and Vanguard Group Inc. Company executive management and the board of directors also hold shares, and insider buying activity has been observed.