CarMax (NYSE:KMX) Sets New 12-Month High on Strong Earnings

CarMax, Inc. (NYSE:KMX)’s share price hit a new 52-week high during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $91.25 and last traded at $86.06, with a volume of 1015638 shares. The stock had previously closed at $81.42.

The company reported $0.81 earnings per share for the quarter, topping analysts’ consensus estimates of $0.62 by $0.19. The business had revenue of $6.22 billion during the quarter, compared to the consensus estimate of $6.05 billion. CarMax had a net margin of 1.61% and a return on equity of 6.83%. The business’s quarterly revenue was up 1.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.52 earnings per share.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. Needham & Company LLC upped their target price on shares of CarMax from $90.00 to $98.00 and gave the company a “buy” rating in a research note on Friday. JPMorgan Chase & Co. increased their target price on CarMax from $70.00 to $72.00 and gave the stock an “underweight” rating in a report on Friday. Mizuho boosted their price target on CarMax from $72.00 to $80.00 and gave the company a “neutral” rating in a report on Friday. Royal Bank of Canada raised their price objective on CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a research note on Thursday. Finally, Evercore ISI boosted their target price on shares of CarMax from $83.00 to $85.00 and gave the company a “market perform” rating in a research note on Thursday. Three analysts have rated the stock with a sell rating, six have issued a hold rating and six have assigned a buy rating to the stock. According to MarketBeat, CarMax currently has a consensus rating of “Hold” and a consensus price target of $85.17.

Institutional Trading of CarMax

A number of large investors have recently modified their holdings of KMX. Quarry LP boosted its stake in CarMax by 78.6% during the 2nd quarter. Quarry LP now owns 418 shares of the company’s stock valued at $31,000 after purchasing an additional 184 shares during the period. Catalyst Capital Advisors LLC bought a new stake in shares of CarMax during the third quarter valued at approximately $32,000. True Wealth Design LLC raised its holdings in shares of CarMax by 4,844.4% during the third quarter. True Wealth Design LLC now owns 445 shares of the company’s stock valued at $34,000 after buying an additional 436 shares during the last quarter. Blue Trust Inc. grew its holdings in CarMax by 134.1% in the 2nd quarter. Blue Trust Inc. now owns 501 shares of the company’s stock worth $37,000 after buying an additional 287 shares in the last quarter. Finally, Studio Investment Management LLC increased its position in CarMax by 176.7% in the 2nd quarter. Studio Investment Management LLC now owns 523 shares of the company’s stock valued at $38,000 after acquiring an additional 334 shares during the period.

CarMax Stock Up 0.0 %

The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.68 and a current ratio of 2.25. The firm has a 50 day simple moving average of $78.77 and a two-hundred day simple moving average of $77.55. The stock has a market cap of $13.06 billion, a P/E ratio of 31.68, a P/E/G ratio of 1.76 and a beta of 1.71.

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.