CarMax (NYSE:KMX) Sets New 52-Week High – Still a Buy?

CarMax, Inc. (NYSE:KMX)’s share price reached a new 52-week high on Thursday . The company traded as high as $65.28 and last traded at $63.82, with a volume of 1496059 shares. The stock had previously closed at $64.22.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on KMX shares. Benchmark restated a “hold” rating on shares of CarMax in a research report on Thursday, June 18th. Wall Street Zen upgraded CarMax from a “sell” rating to a “hold” rating in a research report on Saturday, June 13th. JPMorgan Chase & Co. raised CarMax from an “underweight” rating to a “neutral” rating and lifted their price objective for the company from $38.00 to $60.00 in a research note on Wednesday, July 29th. Truist Financial boosted their target price on CarMax from $47.00 to $50.00 and gave the stock a “hold” rating in a research report on Thursday, June 18th. Finally, Weiss Ratings upgraded CarMax from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, fourteen have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $51.00.

CarMax Trading Down 1.1%

The stock’s 50 day simple moving average is $56.79 and its 200 day simple moving average is $47.58. The firm has a market cap of $8.79 billion, a PE ratio of 40.50, a PEG ratio of 2.87 and a beta of 1.15. The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.82 and a current ratio of 2.70.

CarMax (NYSE:KMX) last posted its quarterly earnings data on Wednesday, June 17th. The company reported $1.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.96 by $0.35. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The company had revenue of $8.01 billion during the quarter, compared to the consensus estimate of $7.42 billion. During the same period in the previous year, the firm posted $1.38 EPS. The firm’s revenue was up 6.2% compared to the same quarter last year. On average, sell-side analysts forecast that CarMax, Inc. will post 2.73 earnings per share for the current fiscal year.

Insider Buying and Selling at CarMax

In other news, Director Sona Chawla acquired 2,000 shares of the business’s stock in a transaction dated Thursday, June 25th. The stock was purchased at an average cost of $53.39 per share, for a total transaction of $106,780.00. Following the acquisition, the director owned 21,702 shares of the company’s stock, valued at $1,158,669.78. This trade represents a 10.15% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Peter J. Bensen acquired 2,500 shares of CarMax stock in a transaction dated Monday, June 22nd. The shares were purchased at an average price of $52.20 per share, for a total transaction of $130,500.00. Following the completion of the transaction, the director directly owned 24,796 shares in the company, valued at approximately $1,294,351.20. The trade was a 11.21% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought 13,900 shares of company stock worth $735,574 over the last 90 days. Corporate insiders own 1.01% of the company’s stock.

Institutional Trading of CarMax

A number of hedge funds have recently bought and sold shares of KMX. Basecamp Wealth Advisors LLC grew its position in CarMax by 105.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company’s stock valued at $26,000 after acquiring an additional 327 shares during the last quarter. Huntington National Bank lifted its holdings in shares of CarMax by 62.4% in the 4th 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 shares of CarMax in the 2nd quarter worth approximately $28,000. Global Retirement Partners LLC purchased a new stake in shares of CarMax in the 2nd quarter valued at $29,000. Finally, Wellington Grp LLC boosted its stake in shares of CarMax by 6,500.0% in the 1st quarter. Wellington Grp LLC now owns 726 shares of the company’s stock valued at $30,000 after purchasing an additional 715 shares in the last quarter.

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.