From what we can see, insiders were net buyers in CarMax, Inc.'s (NYSE:KMX ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At CarMax

The Executive VP of CarMax Auto Finance, Jon Daniels, made the biggest insider sale in the last 12 months. That single transaction was for US$89k worth of shares at a price of US$72.46 each. So what is clear is that an insider saw fit to sell at around the current price of US$66.55. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). The only individual insider seller over the last year was Jon Daniels.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for CarMax NYSE:KMX Insider Trading Volume May 9th 2025

If you are like me, then you will not want to miss this freelist of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insiders At CarMax Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at CarMax. Lead Independent Director Mitchell Steenrod spent US$85k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

Does CarMax Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. CarMax insiders own about US$46m worth of shares. That equates to 0.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About CarMax Insiders?

It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The more recent transactions are a positive, but CarMax insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. Overall they seem reasonably aligned. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that CarMax has 1 warning sign and it would be unwise to ignore this.

Story Continues

But note: CarMax may not be the best stock to buy. So take a peek at this freelist of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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