Executive VP of CarMax Auto Finance Jon Daniels Sold A Bunch Of Shares In CarMax

We'd be surprised if CarMax, Inc. (NYSE:KMX) shareholders haven't noticed that the Executive VP of CarMax Auto Finance, Jon Daniels, recently sold US$109k worth of stock at US$70.64 per share. That sale was 36% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At CarMax

Notably, that recent sale by Jon Daniels is the biggest insider sale of CarMax shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$70.61. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for CarMax

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Does CarMax Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. CarMax insiders own about US$43m worth of shares. That equates to 0.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About CarMax Insiders?

Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. Recent insider selling makes us a little nervous, in light of the broader picture of CarMax insider transactions. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CarMax. You'd be interested to know, that we found 1 warning sign for CarMax and we suggest you have a look.

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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.