CarMax, Inc. (NYSE:KMX - Get Free Report)'s stock price gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $64.33, but opened at $70.27. CarMax shares last traded at $67.08, with a volume of 2,898,134 shares.
The company reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.18 by $0.20. CarMax had a return on equity of 9.11% and a net margin of 2.09%. The business had revenue of $7.55 billion during the quarter, compared to analyst estimates of $7.58 billion. During the same quarter in the previous year, the business earned $0.97 earnings per share. The company's revenue for the quarter was up 6.1% compared to the same quarter last year.
Analyst Upgrades and Downgrades
Several research analysts have issued reports on the company. Evercore ISI dropped their target price on CarMax from $85.00 to $84.00 and set an "outperform" rating for the company in a research report on Wednesday, May 28th. Needham & Company LLC restated a "buy" rating and set a $92.00 target price on shares of CarMax in a research report on Monday. Robert W. Baird decreased their price target on shares of CarMax from $95.00 to $90.00 and set an "outperform" rating for the company in a research note on Friday, April 11th. Wall Street Zen raised shares of CarMax from a "sell" rating to a "hold" rating in a research note on Wednesday, May 7th. Finally, Royal Bank Of Canada lifted their price target on shares of CarMax from $80.00 to $81.00 and gave the company an "outperform" rating in a research note on Monday. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $85.10.
Check Out Our Latest Analysis on CarMax
Insider Buying and Selling
In other CarMax news, Director Mitchell D. Steenrod acquired 1,300 shares of CarMax stock in a transaction that occurred on Thursday, April 24th. The stock was bought at an average price of $65.49 per share, with a total value of $85,137.00. Following the completion of the purchase, the director now directly owns 33,577 shares of the company's stock, valued at approximately $2,198,957.73. This represents a 4.03% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.70% of the stock is currently owned by insiders.
Hedge Funds Weigh In On CarMax
A number of large investors have recently made changes to their positions in KMX. Zions Bancorporation National Association UT acquired a new position in shares of CarMax during the first quarter worth $27,000. Accent Capital Management LLC acquired a new position in shares of CarMax during the first quarter worth $34,000. Strengthening Families & Communities LLC increased its position in shares of CarMax by 93.1% during the first quarter. Strengthening Families & Communities LLC now owns 531 shares of the company's stock worth $39,000 after purchasing an additional 256 shares in the last quarter. Allworth Financial LP increased its position in shares of CarMax by 62.7% during the fourth quarter. Allworth Financial LP now owns 646 shares of the company's stock worth $51,000 after purchasing an additional 249 shares in the last quarter. Finally, Ameriflex Group Inc. acquired a new position in shares of CarMax during the fourth quarter worth $53,000.
CarMax Stock Performance
The business has a 50-day moving average price of $65.60 and a 200-day moving average price of $75.22. The firm has a market capitalization of $10.28 billion, a price-to-earnings ratio of 18.60, a P/E/G ratio of 1.14 and a beta of 1.38. The company has a quick ratio of 0.80, a current ratio of 2.39 and a debt-to-equity ratio of 2.86.
About CarMax
(
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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.
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