CarMax (NYSE:KMX) Trading 4.9% Higher – Still a Buy?

CarMax, Inc. (NYSE:KMX)’s share price rose 4.9% during trading on Friday . The stock traded as high as $53.42 and last traded at $53.5330. Approximately 373,215 shares were traded during trading, a decline of 89% from the average daily volume of 3,440,232 shares. The stock had previously closed at $51.01.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on KMX shares. Evercore set a $45.00 price objective on CarMax in a report on Friday, April 10th. Stephens upgraded shares of CarMax from an “equal weight” rating to an “overweight” rating and set a $66.00 price target for the company in a report on Thursday, June 18th. Royal Bank Of Canada raised their price objective on shares of CarMax from $41.00 to $45.00 and gave the stock a “sector perform” rating in a report on Thursday, June 18th. Benchmark reaffirmed a “hold” rating on shares of CarMax in a research report on Thursday, June 18th. Finally, Wall Street Zen raised shares of CarMax from a “sell” rating to a “hold” rating in a research note on Saturday, June 13th. Two equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and five have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus target price of $47.73.

CarMax Stock Up 5.0%

The company has a current ratio of 2.70, a quick ratio of 0.82 and a debt-to-equity ratio of 2.87. The company has a market capitalization of $7.60 billion, a P/E ratio of 35.00, a PEG ratio of 1.74 and a beta of 1.17. The firm’s 50 day moving average price is $45.95 and its two-hundred day moving average price is $43.90.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Wednesday, June 17th. The company reported $1.31 EPS for the quarter, topping analysts’ consensus estimates of $0.96 by $0.35. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The business had revenue of $8.01 billion for the quarter, compared to analyst estimates of $7.42 billion. During the same quarter in the previous year, the firm posted $1.38 earnings per share. The firm’s revenue for the quarter was up 6.2% on a year-over-year basis. Equities research analysts forecast that CarMax, Inc. will post 2.7 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Keith Barr acquired 9,400 shares of the firm’s stock in a transaction dated Monday, June 22nd. The stock was bought at an average price of $53.01 per share, for a total transaction of $498,294.00. Following the acquisition, the chief executive officer directly owned 33,375 shares of the company’s stock, valued at approximately $1,769,208.75. The trade was a 39.21% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Peter J. Bensen bought 2,500 shares of the stock in a transaction that occurred on Monday, June 22nd. The stock was bought at an average cost of $52.20 per share, for a total transaction of $130,500.00. Following the transaction, the director owned 24,796 shares of the company’s stock, valued at $1,294,351.20. The trade was a 11.21% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 13,900 shares of company stock valued at $735,574 in the last three months. 1.01% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. AQR Capital Management LLC raised its stake in shares of CarMax by 151.8% during the 4th quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock worth $306,429,000 after purchasing an additional 4,780,903 shares in the last quarter. SRS Investment Management LLC grew its stake in shares of CarMax by 1,717.5% in the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock valued at $217,845,000 after buying an additional 5,327,603 shares in the last quarter. Janus Henderson Group PLC increased its holdings in CarMax by 1.1% during the first quarter. Janus Henderson Group PLC now owns 4,580,807 shares of the company’s stock worth $190,471,000 after buying an additional 49,987 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in CarMax by 7.3% during the first quarter. Dimensional Fund Advisors LP now owns 4,275,663 shares of the company’s stock worth $177,767,000 after buying an additional 289,768 shares during the last quarter. Finally, Norges Bank bought a new stake in CarMax during the fourth quarter worth $159,232,000.

CarMax Company Profile

CarMax (NYSE: KMX) is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company’s inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax’s retail locations or browse the company’s online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.