CarMax (NYSE:KMX) Hits New 52-Week High on Better-Than-Expected Earnings

CarMax, Inc. (NYSE:KMX)’s stock price reached a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $91.25 and last traded at $86.06, with a volume of 1015638 shares traded. The stock had previously closed at $81.42.

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

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on KMX shares. Evercore ISI upped their price objective on shares of CarMax from $83.00 to $85.00 and gave the company a “market perform” rating in a research note on Thursday. Truist Financial upped their target price on CarMax from $70.00 to $75.00 and gave the company a “hold” rating in a research report on Monday, September 23rd. Oppenheimer reiterated an “outperform” rating and issued a $105.00 target price on shares of CarMax in a report on Friday, October 4th. Wedbush reaffirmed an “outperform” rating and set a $95.00 price objective on shares of CarMax in a research report on Wednesday, October 16th. Finally, BNP Paribas upgraded shares of CarMax to a “strong sell” rating in a research report on Friday, September 27th. Four analysts have rated the stock with a sell rating, five have assigned a hold rating and six have given a buy rating to the stock. Based on data from MarketBeat, CarMax presently has an average rating of “Hold” and a consensus target price of $82.58.

Hedge Funds Weigh In On CarMax

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

CarMax Stock Up 3.5 %

The company has a market capitalization of $13.05 billion, a PE ratio of 31.67, a PEG ratio of 1.76 and a beta of 1.71. The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.68 and a current ratio of 2.25. The stock’s 50 day moving average is $78.77 and its 200 day moving average is $77.55.

CarMax Company Profile

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.