CarMax (NYSE:KMX) Hits New 52-Week High After Strong Earnings

CarMax, Inc. (NYSE:KMX) shares hit a new 52-week high on Thursday following a better than expected earnings announcement. The stock 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 net margin of 1.61% and a return on equity of 6.83%. The firm had revenue of $6.22 billion during the quarter, compared to the consensus estimate 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 Ratings Changes

KMX has been the topic of several research reports. Needham & Company LLC restated a “buy” rating and set a $90.00 price target on shares of CarMax in a research note on Wednesday, October 16th. Oppenheimer reissued an “outperform” rating and issued a $105.00 price target on shares of CarMax in a research report on Friday, October 4th. Truist Financial lifted their target price on CarMax from $70.00 to $75.00 and gave the company a “hold” rating in a research note on Monday, September 23rd. Royal Bank of Canada reissued an “outperform” rating and set a $82.00 price target 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 note on Friday, September 27th. Four analysts have rated the stock with a sell rating, five have issued a hold rating and six have given a buy rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $81.00.

Hedge Funds Weigh In On CarMax

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. FMR LLC increased its holdings in shares of CarMax by 2,883.1% in the 3rd quarter. FMR LLC now owns 1,772,808 shares of the company’s stock valued at $137,180,000 after acquiring an additional 1,713,379 shares during the last quarter. Vulcan Value Partners LLC raised its holdings in CarMax by 299.7% during the second quarter. Vulcan Value Partners LLC now owns 1,827,139 shares of the company’s stock worth $133,773,000 after purchasing an additional 1,369,986 shares in the last quarter. Holocene Advisors LP raised its stake in shares of CarMax by 740.2% during the 3rd quarter. Holocene Advisors LP now owns 946,931 shares of the company’s stock worth $73,274,000 after buying an additional 834,232 shares in the last quarter. Marshall Wace LLP raised its position in CarMax by 87.6% in the second quarter. Marshall Wace LLP now owns 1,160,601 shares of the company’s stock worth $85,118,000 after acquiring an additional 541,967 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its position in CarMax by 41.8% during the third quarter. Charles Schwab Investment Management Inc. now owns 1,479,340 shares of the company’s stock worth $114,471,000 after purchasing an additional 436,342 shares in the last quarter.

CarMax Price Performance

The company’s 50 day simple moving average is $78.50 and its 200-day simple moving average is $77.50. 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 $13.16 billion, a price-to-earnings ratio of 31.94, a PEG ratio of 1.76 and a beta of 1.71.

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.