CarMax (NYSE:KMX) Trading Up 9.6% After Earnings Beat

CarMax, Inc. (NYSE:KMX)’s stock price shot up 9.6% during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $51.58 and last traded at $51.9810. 1,973,477 shares were traded during trading, a decline of 43% from the average session volume of 3,445,184 shares. The stock had previously closed at $47.43.

The company reported $1.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.35. CarMax had a return on equity of 7.00% and a net margin of 0.96%.The firm had revenue of $8.01 billion for the quarter, compared to analysts’ expectations of $7.42 billion. During the same period in the previous year, the firm posted $1.38 earnings per share. The business’s revenue was up 6.2% compared to the same quarter last year.

CarMax News Roundup

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: CarMax delivered a strong first-quarter beat, reporting adjusted EPS of $1.31 versus estimates around $0.96 and revenue of $8.01 billion versus $7.42 billion expected, helped by higher used-vehicle prices and stronger wholesale demand.
• Positive Sentiment: The company also unveiled a new four-pillar growth strategy focused on pricing, digital simplification, cost control, and finance penetration, which investors may see as a roadmap for improving performance over time.
• Positive Sentiment: Analysts have started to raise their forecasts after the report, including Mizuho lifting its price target from $38 to $43, signaling improving sentiment even though the rating remains neutral. Article Title

Analyst Ratings Changes

KMX has been the topic of several research reports. Royal Bank Of Canada lifted their target price on CarMax from $41.00 to $45.00 and gave the stock a “sector perform” rating in a report on Thursday. Evercore set a $45.00 target price on CarMax in a report on Friday, April 10th. Robert W. Baird lifted their target price on CarMax from $48.00 to $55.00 and gave the stock an “outperform” rating in a report on Thursday. Wall Street Zen raised CarMax from a “sell” rating to a “hold” rating in a report on Saturday, June 13th. Finally, Bank of America lifted their target price on CarMax from $40.00 to $45.00 and gave the stock an “underperform” rating in a report on Wednesday. Two analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and five have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus target price of $46.07.

Institutional Investors Weigh In On CarMax

Several large investors have recently added to or reduced their stakes in KMX. Huntington National Bank increased its stake in CarMax by 62.4% during the fourth quarter. Huntington National Bank now owns 690 shares of the company’s stock worth $27,000 after acquiring an additional 265 shares during the last quarter. CYBER HORNET ETFs LLC bought a new stake in CarMax during the second quarter worth approximately $28,000. Wellington Grp LLC increased its stake in CarMax by 6,500.0% during the first quarter. Wellington Grp LLC now owns 726 shares of the company’s stock worth $30,000 after acquiring an additional 715 shares during the last quarter. MUFG Securities EMEA plc purchased a new position in shares of CarMax during the second quarter valued at approximately $30,000. Finally, Advisory Services Network LLC purchased a new position in shares of CarMax during the third quarter valued at approximately $32,000.

CarMax Stock Up 9.6%

The company has a 50-day simple moving average of $42.36 and a 200-day simple moving average of $42.45. The firm has a market cap of $7.37 billion, a PE ratio of 32.56, a price-to-earnings-growth ratio of 1.97 and a beta of 1.21. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.20 and a quick ratio of 0.49.

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.