CarMax (NYSE:KMX) Trading Up 4.9% - Here's Why

Key Points

• CarMax shares rose 4.9% on Friday, trading as high as $53.42 after closing at $51.01, though volume was well below normal.
• The move came amid mixed-but-notably improved analyst sentiment: several firms raised price targets, and Stephens upgraded the stock to overweight, while the consensus rating remains Reduce with a $47.73 target.
• Recent fundamentals were solid, with CarMax beating quarterly EPS and revenue estimates; the company also saw insider buying from directors Sona Chawla and Peter J. Bensen.

CarMax, Inc. (NYSE:KMX - Get Free Report) shot up 4.9% during trading on Friday . The company traded as high as $53.42 and last traded at $53.5330. Approximately 373,215 shares traded hands during mid-day trading, a decline of 89% from the average daily volume of 3,440,232 shares. The stock had previously closed at $51.01.

Analyst Upgrades and Downgrades

KMX has been the topic of a number of recent analyst reports. Argus upgraded CarMax to a "hold" rating in a report on Thursday, April 16th. UBS Group upped their price target on CarMax from $42.00 to $57.00 and gave the company a "neutral" rating in a research note on Tuesday, June 23rd. JPMorgan Chase & Co. increased their price target on shares of CarMax from $37.00 to $38.00 and gave the company an "underweight" rating in a research report on Thursday, June 18th. Stephens upgraded shares of CarMax from an "equal weight" rating to an "overweight" rating and set a $66.00 price objective for the company in a report on Thursday, June 18th. Finally, Robert W. Baird upped their target price on shares of CarMax from $48.00 to $55.00 and gave the company an "outperform" rating in a research note on Thursday, June 18th. Two investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus price target of $47.73.

CarMax Stock Up 4.9%

The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.82 and a current ratio of 2.70. The firm's fifty day simple moving average is $45.65 and its 200 day simple moving average is $43.83. The stock has a market capitalization of $7.59 billion, a price-to-earnings ratio of 34.94, a P/E/G ratio of 1.63 and a beta of 1.17.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings data on Wednesday, June 17th. The company reported $1.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.35. The company had revenue of $8.01 billion during the quarter, compared to the consensus estimate of $7.42 billion. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The firm's revenue was up 6.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.38 earnings per share. On average, sell-side analysts forecast that CarMax, Inc. will post 2.68 earnings per share for the current year.

Insider Activity at CarMax

In other CarMax news, Director Sona Chawla acquired 2,000 shares of the stock in a transaction dated Thursday, June 25th. The shares were bought at an average cost of $53.39 per share, for a total transaction of $106,780.00. Following the completion of the acquisition, the director directly owned 21,702 shares of the company's stock, valued at approximately $1,158,669.78. This trade represents a 10.15% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Peter J. Bensen acquired 2,500 shares of the business's stock in a transaction dated Monday, June 22nd. The stock was acquired at an average cost of $52.20 per share, for a total transaction of $130,500.00. Following the transaction, the director owned 24,796 shares of the company's stock, valued at $1,294,351.20. This represents a 11.21% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have bought 13,900 shares of company stock valued at $735,574. 1.01% of the stock is owned by insiders.

Institutional Investors Weigh In On CarMax

Several institutional investors and hedge funds have recently added to or reduced their stakes in KMX. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of CarMax by 0.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,389 shares of the company's stock valued at $2,446,000 after acquiring an additional 173 shares in the last quarter. Jones Financial Companies Lllp raised its holdings in CarMax by 3.1% during the first quarter. Jones Financial Companies Lllp now owns 5,372 shares of the company's stock worth $419,000 after acquiring an additional 161 shares in the last quarter. Empowered Funds LLC raised its holdings in CarMax by 12.5% during the first quarter. Empowered Funds LLC now owns 5,273 shares of the company's stock worth $411,000 after acquiring an additional 585 shares in the last quarter. Intech Investment Management LLC grew its stake in CarMax by 61.7% in the first quarter. Intech Investment Management LLC now owns 19,143 shares of the company's stock valued at $1,492,000 after purchasing an additional 7,307 shares in the last quarter. Finally, Acadian Asset Management LLC bought a new position in CarMax in the first quarter valued at approximately $727,000.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.