Shares of America’s Car-Mart, Inc. (NASDAQ: CRMT) experienced a noteworthy surge, escalating by 12.89% to $91.25 in the after-market trading session. Preceding this, during the regular session, Car-Mart’s stock exhibited an upward trajectory, registering a 7.10% increase and concluding at $80.83.
This surge in CRMT stock anticipates the imminent release of its fiscal 2024 second-quarter financial results, scheduled to be disclosed before the market opens today. Another contributing factor to the ascent in CRMT stock was a strategic announcement made last week.
Car-Mart (CRMT) divulged that its subsidiary, America’s Car Mart, Inc., has formally entered into a definitive agreement. This agreement outlines the acquisition of the operational dealership assets of Allied Union Group, Inc., an Arkansas corporation operating under the name Central Auto Sales. Notably, the existing finance receivables are excluded from the transaction and will be retained by the seller. The finalization of this transaction is expected later this month.
Established by Mike and Stacey Steven-Assheuer in 1996 in Hot Springs, Arkansas, Central Auto Sales holds historical significance. The incorporation of Central Auto Sales into Car-Mart’s portfolio is poised to strengthen its presence in Hot Springs and augment its reconditioning capabilities.
This strategic move aligns with CRMT’s overarching business strategy of expansion through acquisitions. Such endeavors not only yield commendable returns for shareholders but also provide exit avenues for owner-operators, while concurrently fostering future growth prospects for their associates.
The integration of Central Auto Sales into Car-Mart’s network of dealerships encompasses the assimilation of their on-site maintenance facility equipped with 15 lifts. With 25 years of expertise in the automotive industry, Mike and Stacey’s invaluable insights are expected to significantly contribute to Car-Mart’s enhancement of vehicle reconditioning and warranty servicing capabilities.
In parallel to these corporate developments, CRMT is actively engaged in its 15th annual Holiday Toy Drive, spanning from November 1 to December 9. This philanthropic initiative aims to collect toys for distribution to 30 children’s hospitals. Over 150 Car-Mart dealerships across its 12-state area serve as designated toy donation centers for customers and local communities. Notably, in the preceding year of 2022, the company successfully gathered over 25,000 toys for 29 children’s hospitals.
