In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Americas Carmart Inc. (NASDAQ:CRMT) reported that Magnolia Capital Fund, Lp. has picked up 797,955 of common stock as of 2017-04-18.
The acquisition brings the aggregate amount owned by Magnolia Capital Fund, Lp. to a total of 797,955 representing a 10.2% stake in the company.
For those not familiar with the company, America’s Car-Mart, Inc. is an automotive retailer focused on the integrated auto sales and finance segment of the used car market. The Company conducts its operations through its two operating subsidiaries, America’s Car Mart, Inc. (Car-Mart of Arkansas) and Colonial Auto Finance, Inc. (Colonial) (Collectively, Car-Mart of Arkansas and Colonial are referred to as Car-Mart). It primarily sells older model used vehicles and provides financing for all of its customers. As of April 30, 2016, the Company operated 143 dealerships located primarily in small cities throughout the South-Central United States. Dealerships are operated on a decentralized basis. Each dealership is responsible for buying (with the assistance of a corporate office buyer) and selling vehicles, making credit decisions, and servicing and collecting the installment contracts it originates. Dealerships also maintain their own records and make daily deposits. The Company has both regular and satellite dealerships.
A glance at Americas Carmart Inc. (NASDAQ:CRMT)’s key stats reveals a current market capitalization of 296.42 Million based on 7.80 Million shares outstanding and a price at last close of $37.00 per share.
Looking at insider activity, there are a few transactions worth noting.
Specifically, on 2017-04-17, Magnolia picked up 18,313 at a purchase price of $35.85. This brings their total holding to 797,955 as of the date of the filing.
On the sell side, the most recent transaction saw Henderson unload 10,000 shares at a sale price of $41.65. This brings their total holding to 76,984.
It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Americas Carmart Inc. (NASDAQ:CRMT) as things move forward to see if its progress aligns with these transactions.
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