CarMax (NYSE:KMX) Reaches New 52-Week High - Still a Buy?

CarMax, Inc. (NYSE:KMX - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $65.28 and last traded at $63.82, with a volume of 1496059 shares. The stock had previously closed at $64.22.

Analysts Set New Price Targets

Several brokerages have weighed in on KMX. Bank of America lifted their price objective on CarMax from $40.00 to $45.00 and gave the company an "underperform" rating in a report on Wednesday, June 17th. JPMorgan Chase & Co. raised CarMax from an "underweight" rating to a "neutral" rating and increased their target price for the stock from $38.00 to $60.00 in a report on Wednesday, July 29th. Benchmark restated a "hold" rating on shares of CarMax in a research report on Thursday, June 18th. Barclays raised CarMax from an "underweight" rating to an "equal weight" rating and boosted their price target for the company from $37.00 to $61.00 in a research note on Tuesday, July 21st. Finally, Morgan Stanley upped their target price on CarMax from $35.00 to $44.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 23rd. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, fourteen have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, CarMax currently has an average rating of "Hold" and an average price target of $51.00.

CarMax Stock Down 0.6%

The company has a quick ratio of 0.82, a current ratio of 2.70 and a debt-to-equity ratio of 2.87. The stock has a market cap of $9.06 billion, a price-to-earnings ratio of 41.71, a PEG ratio of 2.94 and a beta of 1.15. The stock has a 50 day simple moving average of $56.44 and a 200 day simple moving average of $47.37.

CarMax (NYSE:KMX - Get Free Report) last released its quarterly earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.35. The business had revenue of $8.01 billion for the quarter, compared to analysts' expectations of $7.42 billion. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The firm's revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period in the previous year, the company earned $1.38 earnings per share. As a group, analysts expect that CarMax, Inc. will post 2.73 earnings per share for the current fiscal year.

Insider Buying and Selling at CarMax

In other CarMax news, Director Peter J. Bensen bought 2,500 shares of the firm's stock in a transaction that occurred on Monday, June 22nd. The shares were bought at an average price of $52.20 per share, for a total transaction of $130,500.00. Following the transaction, the director directly owned 24,796 shares in the company, valued at $1,294,351.20. This trade represents a 11.21% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Sona Chawla bought 2,000 shares of the stock in a transaction dated Thursday, June 25th. The stock was bought at an average cost of $53.39 per share, with a total value of $106,780.00. Following the purchase, the director owned 21,702 shares in the company, valued at $1,158,669.78. The trade was a 10.15% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought 13,900 shares of company stock worth $735,574 over the last 90 days. Corporate insiders own 1.01% of the company's stock.

Hedge Funds Weigh In On CarMax

Institutional investors and hedge funds have recently modified their holdings of the stock. California State Teachers Retirement System increased its holdings in shares of CarMax by 4,934.8% in the 2nd quarter. California State Teachers Retirement System now owns 8,253,061 shares of the company's stock worth $436,504,000 after purchasing an additional 8,089,141 shares in the last quarter. SRS Investment Management LLC lifted its holdings in shares of CarMax by 1,717.5% during the 4th quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company's stock valued at $217,845,000 after buying an additional 5,327,603 shares during the period. AQR Capital Management LLC boosted its position in CarMax by 151.8% in the fourth quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company's stock worth $306,429,000 after purchasing an additional 4,780,903 shares during the last quarter. Jupiter Topco LLC purchased a new stake in shares of CarMax in the 2nd quarter worth $245,676,000. Finally, Primecap Management Co. CA bought a new position in CarMax in the 2nd quarter worth $230,548,000.

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.

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