CarMax (NYSE:KMX) Sets New 1-Year High – Here’s Why

CarMax, Inc. (NYSE:KMX) shares hit a new 52-week high on Friday . The stock traded as high as $62.99 and last traded at $62.76, with a volume of 361781 shares trading hands. The stock had previously closed at $61.05.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on KMX. Royal Bank Of Canada raised their price objective on CarMax from $41.00 to $45.00 and gave the stock a “sector perform” rating in a report on Thursday, June 18th. Weiss Ratings upgraded CarMax from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, July 20th. Wall Street Zen upgraded CarMax from a “sell” rating to a “hold” rating in a research note on Saturday, June 13th. Benchmark reiterated a “hold” rating on shares of CarMax in a research report on Thursday, June 18th. Finally, Zacks Research raised CarMax from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, fourteen have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, CarMax presently has a consensus rating of “Hold” and a consensus price target of $51.00.

CarMax Stock Up 1.8%

The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82. The stock has a market cap of $8.82 billion, a price-to-earnings ratio of 40.60, a price-to-earnings-growth ratio of 2.70 and a beta of 1.15. The firm’s 50-day moving average is $55.43 and its 200 day moving average is $46.88.

CarMax (NYSE:KMX) last announced its quarterly earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, beating analysts’ consensus estimates 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%. CarMax’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same quarter last year, the business earned $1.38 EPS. Sell-side analysts anticipate that CarMax, Inc. will post 2.73 earnings per share for the current fiscal year.

Insider Activity at CarMax

In other news, Director Peter J. Bensen purchased 2,500 shares of the company’s stock in a transaction 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 completion of the purchase, the director directly 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. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Keith Barr acquired 9,400 shares of the business’s stock in a transaction dated Monday, June 22nd. The stock was purchased at an average price of $53.01 per share, for a total transaction of $498,294.00. Following the completion of the acquisition, the chief executive officer owned 33,375 shares in the company, 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. Over the last 90 days, insiders have bought 13,900 shares of company stock worth $735,574. 1.01% of the stock is owned by insiders.

Institutional Trading of CarMax

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Bessemer Group Inc. lifted its position in shares of CarMax by 28.1% during the first quarter. Bessemer Group Inc. now owns 156,121 shares of the company’s stock worth $6,491,000 after purchasing an additional 34,211 shares during the last quarter. Bank of America Corp DE grew its stake in CarMax by 61.7% in the first quarter. Bank of America Corp DE now owns 1,687,359 shares of the company’s stock worth $70,160,000 after purchasing an additional 643,834 shares in the last quarter. Convergence Investment Partners LLC bought a new stake in CarMax in the first quarter valued at about $1,688,000. BML Capital Management LLC acquired a new stake in CarMax during the fourth quarter valued at approximately $5,989,000. Finally, Louisiana State Employees Retirement System acquired a new stake in CarMax during the first quarter valued at approximately $2,615,000.

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.