Short Interest in CarMax, Inc. (NYSE:KMX) Grows By 8.1%

CarMax, Inc. (NYSE:KMX) was the target of a large increase in short interest during the month of September. As of September 30th, there was short interest totalling 17,180,000 shares, an increase of 8.1% from the September 15th total of 15,890,000 shares. Based on an average daily trading volume, of 1,840,000 shares, the days-to-cover ratio is currently 9.3 days. Approximately 11.1% of the shares of the stock are short sold.

Wall Street Analysts Forecast Growth

KMX has been the subject of several recent research reports. Oppenheimer reissued an “outperform” rating and issued a $105.00 price target on shares of CarMax in a research note on Friday, October 4th. Mizuho decreased their price target on CarMax from $75.00 to $72.00 and set a “neutral” rating for the company in a research note on Tuesday, June 18th. Needham & Company LLC increased their price target on CarMax from $87.00 to $90.00 and gave the company a “buy” rating in a research note on Friday, September 27th. Wedbush reissued an “outperform” rating and issued a $95.00 price target on shares of CarMax in a research note on Tuesday, September 17th. Finally, Truist Financial increased their price target on CarMax from $70.00 to $75.00 and gave the company a “hold” rating in a research note on Monday, September 23rd. Four analysts have rated the stock with a sell rating, four have assigned a hold rating and six have issued a buy rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $79.45.

CarMax Trading Up 0.9 %

Shares of CarMax stock opened at $73.67 on Wednesday. The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.68 and a current ratio of 2.25. CarMax has a 52 week low of $59.66 and a 52 week high of $88.22. The stock has a 50 day moving average price of $78.03 and a two-hundred day moving average price of $75.39. The stock has a market capitalization of $11.50 billion, a PE ratio of 28.78, a price-to-earnings-growth ratio of 1.46 and a beta of 1.68.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Thursday, September 26th. The company reported $0.85 EPS for the quarter, missing analysts’ consensus estimates of $0.86 by ($0.01). CarMax had a net margin of 1.61% and a return on equity of 6.83%. The firm had revenue of $7.01 billion during the quarter, compared to analyst estimates of $6.83 billion. During the same period last year, the business posted $0.75 EPS. The company’s revenue was down .9% on a year-over-year basis. As a group, equities analysts anticipate that CarMax will post 2.97 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, COO Charles Joseph Wilson sold 10,021 shares of the company’s stock in a transaction on Tuesday, July 23rd. The stock was sold at an average price of $80.02, for a total transaction of $801,880.42. Following the completion of the sale, the chief operating officer now directly owns 15,609 shares in the company, valued at $1,249,032.18. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In other CarMax news, COO Charles Joseph Wilson sold 10,021 shares of the stock in a transaction dated Tuesday, July 23rd. The stock was sold at an average price of $80.02, for a total value of $801,880.42. Following the completion of the transaction, the chief operating officer now directly owns 15,609 shares in the company, valued at approximately $1,249,032.18. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Mohammad Shamim sold 25,000 shares of the stock in a transaction dated Friday, July 26th. The shares were sold at an average price of $82.26, for a total value of $2,056,500.00. Following the completion of the transaction, the executive vice president now owns 11,738 shares of the company’s stock, valued at $965,567.88. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.66% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On CarMax

A number of hedge funds have recently added to or reduced their stakes in the company. Vulcan Value Partners LLC lifted its holdings in shares of CarMax by 299.7% in the second quarter. Vulcan Value Partners LLC now owns 1,827,139 shares of the company’s stock valued at $133,773,000 after purchasing an additional 1,369,986 shares in the last quarter. DAVENPORT & Co LLC lifted its holdings in shares of CarMax by 1,327.3% in the first quarter. DAVENPORT & Co LLC now owns 1,023,247 shares of the company’s stock valued at $89,070,000 after purchasing an additional 951,558 shares in the last quarter. Epoch Investment Partners Inc. lifted its holdings in shares of CarMax by 3,094.0% in the first quarter. Epoch Investment Partners Inc. now owns 596,356 shares of the company’s stock valued at $51,949,000 after purchasing an additional 577,685 shares in the last quarter. Marshall Wace LLP lifted its holdings in shares of CarMax by 87.6% in the second quarter. Marshall Wace LLP now owns 1,160,601 shares of the company’s stock valued at $85,118,000 after purchasing an additional 541,967 shares in the last quarter. Finally, AQR Capital Management LLC lifted its holdings in shares of CarMax by 212.8% in the second quarter. AQR Capital Management LLC now owns 488,836 shares of the company’s stock valued at $35,851,000 after purchasing an additional 332,574 shares in the last quarter.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.