CarMax (NYSE:KMX) Trading Up 5.1% – Should You Buy?

CarMax, Inc. (NYSE:KMX) was up 5.1% during trading on Wednesday . The company traded as high as $46.48 and last traded at $46.15. Approximately 310,065 shares changed hands during trading, a decline of 91% from the average daily volume of 3,324,352 shares. The stock had previously closed at $43.93.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on KMX shares. Bank of America started coverage on shares of CarMax in a research note on Wednesday, April 15th. They set an “underperform” rating and a $40.00 price objective on the stock. Wall Street Zen cut shares of CarMax from a “hold” rating to a “sell” rating in a research note on Sunday. UBS Group started coverage on shares of CarMax in a research note on Wednesday, May 27th. They set a “neutral” rating and a $42.00 price objective on the stock. Royal Bank Of Canada reaffirmed a “sector perform” rating and set a $41.00 price objective on shares of CarMax in a research note on Wednesday, April 15th. Finally, Barclays dropped their price objective on shares of CarMax from $28.00 to $26.00 and set an “underweight” rating on the stock in a research note on Thursday, April 16th. One analyst has rated the stock with a Buy rating, fourteen have issued a Hold rating and five have given a Sell rating to the company. According to MarketBeat.com, CarMax has an average rating of “Reduce” and an average price target of $41.27.

CarMax Stock Up 5.9%

The business’s 50 day moving average is $40.69 and its 200-day moving average is $41.32. The stock has a market cap of $6.60 billion, a price-to-earnings ratio of 29.08, a PEG ratio of 1.70 and a beta of 1.21. The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.49 and a current ratio of 2.20.

CarMax (NYSE:KMX) last released its quarterly earnings results on Tuesday, April 14th. The company reported $0.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.22 by $0.12. CarMax had a net margin of 0.96% and a return on equity of 7.00%. The firm had revenue of $5.95 billion for the quarter, compared to analysts’ expectations of $5.65 billion. During the same quarter last year, the company earned $0.58 EPS. The firm’s revenue for the quarter was down 1.0% compared to the same quarter last year. On average, sell-side analysts predict that CarMax, Inc. will post 2.3 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KMX. SRS Investment Management LLC lifted its holdings in CarMax by 1,717.5% in the 4th quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock valued at $217,845,000 after purchasing an additional 5,327,603 shares in the last quarter. AQR Capital Management LLC raised its holdings 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 acquiring an additional 4,780,903 shares during the period. Norges Bank purchased a new position in shares of CarMax during the 4th quarter worth $159,232,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of CarMax by 73.7% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock worth $158,074,000 after acquiring an additional 1,494,205 shares during the period. Finally, Vulcan Value Partners LLC raised its holdings in shares of CarMax by 135.2% during the 3rd quarter. Vulcan Value Partners LLC now owns 2,328,120 shares of the company’s stock worth $104,569,000 after acquiring an additional 1,338,134 shares during the period.

About CarMax

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.