CarMax (NYSE:KMX) Reaches New 1-Year High Following Strong Earnings

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

The company reported $0.81 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.19. CarMax had a return on equity of 6.83% and a net margin of 1.61%. The company had revenue of $6.22 billion during the quarter, compared to the consensus estimate of $6.05 billion. During the same period in the previous year, the firm posted $0.52 EPS. CarMax’s revenue was up 1.2% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of analysts have issued reports on KMX shares. Wedbush reissued an “outperform” rating and issued a $95.00 price target on shares of CarMax in a research note on Wednesday, October 16th. Stephens began coverage on shares of CarMax in a research report on Thursday, December 5th. They issued an “equal weight” rating and a $86.00 target price on the stock. JPMorgan Chase & Co. upped their price target on shares of CarMax from $70.00 to $72.00 and gave the stock an “underweight” rating in a research report on Friday. Royal Bank of Canada lifted their price target on shares of CarMax from $92.00 to $99.00 and gave the company an “overweight” rating in a report on Thursday. Finally, Oppenheimer restated an “outperform” rating and set a $105.00 price objective on shares of CarMax in a report on Friday, October 4th. Three research analysts have rated the stock with a sell rating, six have assigned a hold rating and six have given a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $85.17.

Institutional Investors Weigh In On CarMax

A number of large investors have recently modified their holdings of KMX. Quarry LP lifted its position in CarMax by 78.6% during the 2nd quarter. Quarry LP now owns 418 shares of the company’s stock worth $31,000 after acquiring an additional 184 shares in the last quarter. Catalyst Capital Advisors LLC purchased a new position in shares of CarMax in the third quarter valued at $32,000. True Wealth Design LLC grew its holdings in CarMax by 4,844.4% during the 3rd quarter. True Wealth Design LLC now owns 445 shares of the company’s stock valued at $34,000 after purchasing an additional 436 shares in the last quarter. Blue Trust Inc. increased its stake in CarMax by 134.1% during the 2nd quarter. Blue Trust Inc. now owns 501 shares of the company’s stock worth $37,000 after buying an additional 287 shares during the period. Finally, Studio Investment Management LLC lifted its holdings in CarMax by 176.7% in the 2nd quarter. Studio Investment Management LLC now owns 523 shares of the company’s stock worth $38,000 after buying an additional 334 shares in the last quarter.

CarMax Trading Up 0.0 %

The business’s 50-day simple moving average is $78.77 and its two-hundred day simple moving average is $77.55. The company has a current ratio of 2.25, a quick ratio of 0.68 and a debt-to-equity ratio of 2.93. The company has a market capitalization of $13.06 billion, a PE ratio of 31.68, a PEG 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.