CRMT Should I Buy
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America's CAR-MART Inc (CRMT) is not a strong buy at the moment for a beginner investor with a long-term strategy. The company's financial performance is weak, with significant declines in net income and EPS, and technical indicators suggest a bearish trend. While hedge funds are buying, there are no strong positive catalysts or trading signals to support an immediate buy decision.
The MACD is negative and contracting, RSI is neutral at 44.239, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading below its pivot point of 23.37, with key support at 21.109 and resistance at 25.632. Overall, the technical indicators suggest a bearish trend.
Hedge funds are significantly increasing their positions, with a 14186.49% increase in buying over the last quarter. Analysts note progress in cost savings, margin improvement, and structural positioning for recovery.
The company's financials are weak, with a 541.78% YoY drop in net income and a 544.26% YoY drop in EPS. Gross margin also declined by 2.60% YoY. No recent news or congress trading data is available to suggest positive momentum.
In Q2 2026, revenue increased slightly by 0.84% YoY to $350.19M. However, net income dropped significantly to -$22.48M (-541.78% YoY), and EPS declined to -2.71 (-544.26% YoY). Gross margin fell to 48.28%, down 2.60% YoY.
Jefferies analyst John Hecht lowered the price target from $34 to $29 and maintained a Hold rating. The analyst highlighted progress in cost savings and structural positioning but noted headwinds from tariffs and capital constraints.
