Carmax Inc (KMX, -N, July 14th)
Since June 28th, (AGM was on Jun 27, Q1 results Jun 23), seven key operating officers have made meaningful % sales. In most cases, these are the first sales from these executives since 2021 when the stock was at $130. Some of the sellers are exercising options, most not expiring till 2024, and then making sales in addition to the option exercises.
Darren Newberry (SVP-Store Operations, joined 2004) and Jon Daniels (Div. SVP-Auto Finance, since 2014) fit that category.
William Nash (CEO) exercised and sold $14.1m worth of stock, his first sale since January 2021 ($19m at $117), and a reversal from a timely buy in December 2022 at $61.
Jill Livesay (Controller) is making her first sale since joining in 2016.
Mohammad Shamin (Chief Info Officer) exercised options and sold $2.3m worth of stock, his largest sale since 2021.
Jim Lyski (Chief Marketing Officer, joined 2014) is also making his first sale since 2021, exercising and selling $5.7m worth of options. The stock has had a strong move since the CEO’s purchase in January at $61, and we expect to see a selling surface, but these sales appear aggressive and at lower price points than most of these insiders sold in 2021.
It could indicate these insiders see the stock now at fair value, but the selling is concerning.
We are ranking the stock -N.
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