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

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

Analyst Ratings Changes

A number of equities analysts recently weighed in on KMX shares. Benchmark restated a “hold” rating on shares of CarMax in a report on Thursday, June 18th. Evercore set a $45.00 price target on shares of CarMax in a research note on Friday, April 10th. Mizuho lifted their price objective on shares of CarMax from $38.00 to $43.00 and gave the company a “neutral” rating in a research report on Thursday, June 18th. Royal Bank Of Canada boosted their price objective on shares of CarMax from $41.00 to $45.00 and gave the stock a “sector perform” rating in a research note on Thursday, June 18th. Finally, UBS Group upped their target price on shares of CarMax from $42.00 to $57.00 and gave the company a “neutral” rating in a report on Tuesday, June 23rd. Two research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Reduce” and a consensus target price of $47.73.

CarMax Stock Performance

The stock has a market capitalization of $7.59 billion, a P/E ratio of 34.94, a PEG ratio of 1.63 and a beta of 1.17. The stock’s 50-day simple moving average is $45.65 and its 200 day simple moving average is $43.83. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82.

CarMax (NYSE:KMX) last issued its quarterly earnings data on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.35. The company had revenue of $8.01 billion for the quarter, compared to analyst estimates of $7.42 billion. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The company’s revenue was up 6.2% on a year-over-year basis. During the same period in the prior year, the firm earned $1.38 earnings per share. Research analysts expect that CarMax, Inc. will post 2.68 EPS for the current fiscal year.

Insider Buying and Selling at CarMax

In related news, Director Peter J. Bensen acquired 2,500 shares of the business’s stock in a transaction on Monday, June 22nd. The stock was purchased at an average cost of $52.20 per share, for a total transaction of $130,500.00. Following the completion of the transaction, the director directly owned 24,796 shares of the company’s stock, valued at approximately $1,294,351.20. The trade was a 11.21% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Keith Barr acquired 9,400 shares of CarMax stock in a transaction dated Monday, June 22nd. The shares were purchased at an average price of $53.01 per share, with a total value of $498,294.00. Following the acquisition, the chief executive officer owned 33,375 shares of the company’s stock, valued at approximately $1,769,208.75. This trade represents a 39.21% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have purchased a total of 13,900 shares of company stock valued at $735,574 in the last three months. 1.01% of the stock is currently owned by company insiders.

Institutional Trading of CarMax

Several institutional investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC grew its holdings in CarMax by 151.8% in the 4th quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock valued at $306,429,000 after buying an additional 4,780,903 shares in the last quarter. SRS Investment Management LLC lifted its holdings in shares of CarMax by 1,717.5% during the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock worth $217,845,000 after buying an additional 5,327,603 shares in the last quarter. Janus Henderson Group PLC lifted its holdings in shares of 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 in the last quarter. Dimensional Fund Advisors LP boosted its position in shares of CarMax by 7.3% in the first quarter. Dimensional Fund Advisors LP now owns 4,275,663 shares of the company’s stock valued at $177,767,000 after acquiring an additional 289,768 shares during the period. Finally, Norges Bank bought a new stake in shares of CarMax in the fourth quarter valued at about $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.