CarMax (NYSE:KMX) Trading Up 5.1% – Should You Buy?

CarMax, Inc. (NYSE:KMX) was up 5.1% during trading on Wednesday . The company traded as high as $46.48 and last traded at $46.15. Approximately 310,065 shares traded hands during mid-day trading, a decline of 91% from the average daily volume of 3,324,352 shares. The stock had previously closed at $43.93.

Analyst Ratings Changes

A number of research firms recently weighed in on KMX. UBS Group began coverage on shares of CarMax in a research note on Wednesday, May 27th. They issued a “neutral” rating and a $42.00 price objective for the company. Weiss Ratings reaffirmed a “sell (d)” rating on shares of CarMax in a research note on Wednesday, April 8th. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $41.00 price objective on shares of CarMax in a research note on Wednesday, April 15th. Bank of America began coverage on shares of CarMax in a research note on Wednesday, April 15th. They issued an “underperform” rating and a $40.00 price objective for the company. Finally, JPMorgan Chase & Co. increased their price target on shares of CarMax from $28.00 to $35.00 and gave the company an “underweight” rating in a research report on Wednesday, April 15th. One research analyst has rated the stock with a Buy rating, fourteen have assigned a Hold rating and five have issued a Sell rating to the company’s stock. According to MarketBeat, CarMax presently has a consensus rating of “Reduce” and a consensus price target of $41.27.

CarMax Trading Up 5.9%

The firm has a market capitalization of $6.60 billion, a PE ratio of 29.08, a price-to-earnings-growth ratio of 1.70 and a beta of 1.21. The company has a quick ratio of 0.49, a current ratio of 2.20 and a debt-to-equity ratio of 2.93. The company’s 50-day simple moving average is $40.69 and its 200 day simple moving average is $41.32.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Tuesday, April 14th. The company reported $0.34 EPS for the quarter, beating the consensus estimate of $0.22 by $0.12. The firm had revenue of $5.95 billion during the quarter, compared to analyst estimates of $5.65 billion. CarMax had a net margin of 0.96% and a return on equity of 7.00%. CarMax’s revenue was down 1.0% on a year-over-year basis. During the same period last year, the firm posted $0.58 EPS. As a group, sell-side analysts expect that CarMax, Inc. will post 2.3 EPS for the current year.

Hedge Funds Weigh In On CarMax

Several hedge funds and other institutional investors have recently bought and sold shares of the business. NewEdge Advisors LLC increased its holdings in CarMax by 63.0% in the 1st quarter. NewEdge Advisors LLC now owns 69,568 shares of the company’s stock worth $2,893,000 after buying an additional 26,888 shares during the period. Blue Edge Capital LLC acquired a new position in CarMax in the 1st quarter worth approximately $304,000. Caerus Investment Advisors LLC increased its holdings in CarMax by 9.0% in the 1st quarter. Caerus Investment Advisors LLC now owns 6,396 shares of the company’s stock worth $266,000 after buying an additional 528 shares during the period. Wellington Grp LLC increased its holdings in CarMax by 6,500.0% in the 1st quarter. Wellington Grp LLC now owns 726 shares of the company’s stock worth $30,000 after buying an additional 715 shares during the period. Finally, Bank of America Corp DE increased its holdings in CarMax by 61.7% in the 1st quarter. Bank of America Corp DE now owns 1,687,359 shares of the company’s stock worth $70,160,000 after buying an additional 643,834 shares during the period.

About CarMax

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.