CarMax (NYSE:KMX) Achieves New 1-Year High After Strong Earnings Release

On Thursday, shares of CarMax, Inc. (NYSE:KMX) hit a new 52-week high following a positive earnings report. During the trading session, the stock reached a peak price of $91.25 before ultimately closing at $86.06, with a trading volume of 1,015,638 shares. The previous closing price was $81.42.

In its recent earnings announcement, CarMax reported earnings of $0.81 per share for the quarter, outpacing analysts' expectations, which had set a consensus of $0.62. The company noted a return on equity of 6.83% and a net profit margin of 1.61%. Revenue for the quarter totaled $6.22 billion, also exceeding estimates of $6.05 billion. This represents a year-over-year revenue growth of 1.2%, compared to the $0.52 EPS reported for the same quarter last year.

Analyst Opinions on CarMax

Several analysts have recently shared their perspectives on CarMax. Wedbush reaffirmed an "outperform" rating and set a target price of $95.00 for the stock in a research note. Meanwhile, Stephens initiated coverage with an "equal weight" rating and a price target of $86.00. JPMorgan Chase & Co. raised their price target for the stock from $70.00 to $72.00, assigning it an "underweight" rating. Royal Bank of Canada increased its price target from $92.00 to $99.00 and issued an "overweight" rating. Finally, Oppenheimer reiterated an "outperform" rating with a price objective of $105.00. Overall, three analysts rate the stock as a sell, six as a hold, and six as a buy. Currently, the average rating is classified as "Hold" with a price target averaging $85.17 according to MarketBeat.com.

Changes Among Institutional Investors

In recent months, several institutional investors have adjusted their holdings in CarMax. Quarry LP boosted its ownership by 78.6% in the second quarter, bringing its total shares to 418, valued at approximately $31,000. Catalyst Capital Advisors LLC entered a new position in CarMax during the third quarter, worth about $32,000. True Wealth Design LLC dramatically increased its holdings by 4,844.4% during the third quarter, accumulating 445 shares valued at $34,000. Blue Trust Inc. grew its stake by 134.1%, owning 501 shares following the purchase of 287 additional shares. Lastly, Studio Investment Management LLC raised its investment by 176.7%, accumulating 523 shares valued at $38,000 after acquiring 334 shares last quarter.

Recent Trading Activity of CarMax

CarMax has a 50-day simple moving average of $78.77 and a 200-day simple moving average of $77.55. The company’s current ratio stands at 2.25, while its quick ratio is at 0.68, and its debt-to-equity ratio is 2.93. Currently, CarMax has a market capitalization of approximately $13.06 billion, with a price-to-earnings (PE) ratio of 31.68, a price-to-earnings growth (PEG) ratio of 1.76, and a beta of 1.71.

About CarMax

CarMax, Inc., through its subsidiaries, is engaged in the retail sale of used vehicles and ancillary products throughout the United States. The company operates in two main segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment provides a wide variety of used vehicles to customers, including domestic, imported, luxury, hybrid, and electric options. It also offers used vehicle auctions, extended protection plans, and vehicle repair services.

CarMax, Earnings, Stocks