CarMax (NYSE:KMX) Hits New 1-Year High Following Better-Than-Expected Earnings

CarMax, Inc. (NYSE:KMX - Get Free Report) shares reached a new 52-week high on Thursday following a better than expected earnings announcement. The company traded as high as $91.25 and last traded at $86.06, with a volume of 1015638 shares traded. The stock had previously closed at $81.42.

The company reported $0.81 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.19. CarMax had a return on equity of 6.83% and a net margin of 1.61%. The business had revenue of $6.22 billion during the quarter, compared to the consensus estimate of $6.05 billion. During the same quarter last year, the company earned $0.52 earnings per share. The company's quarterly revenue was up 1.2% on a year-over-year basis.

Wall Street Analysts Forecast Growth

KMX has been the topic of a number of research reports. BNP Paribas raised CarMax to a "strong sell" rating in a report on Friday, September 27th. Truist Financial increased their price target on shares of CarMax from $70.00 to $75.00 and gave the stock a "hold" rating in a report on Monday, September 23rd. Wedbush reissued an "outperform" rating and set a $95.00 price target on shares of CarMax in a research report on Wednesday, October 16th. Oppenheimer reaffirmed an "outperform" rating and issued a $105.00 price objective on shares of CarMax in a report on Friday, October 4th. Finally, Stephens began coverage on shares of CarMax in a research note on Thursday, December 5th. They issued an "equal weight" rating and a $86.00 price objective on the stock. Four research analysts have rated the stock with a sell rating, five have given a hold rating and six have issued a buy rating to the stock. According to MarketBeat.com, CarMax currently has an average rating of "Hold" and an average price target of $82.58.

Institutional Investors Weigh In On CarMax

A number of institutional investors have recently modified their holdings of KMX. Assenagon Asset Management S.A. increased its position in shares of CarMax by 292.5% in the second quarter. Assenagon Asset Management S.A. now owns 28,539 shares of the company's stock valued at $2,093,000 after buying an additional 21,267 shares in the last quarter. Blue Trust Inc. increased its holdings in CarMax by 134.1% in the 2nd quarter. Blue Trust Inc. now owns 501 shares of the company's stock worth $37,000 after acquiring an additional 287 shares in the last quarter. Brookstone Capital Management raised its position in CarMax by 17.4% during the second quarter. Brookstone Capital Management now owns 4,069 shares of the company's stock worth $298,000 after acquiring an additional 602 shares during the period. Raymond James Financial Services Advisors Inc. lifted its holdings in CarMax by 13.1% during the second quarter. Raymond James Financial Services Advisors Inc. now owns 233,866 shares of the company's stock valued at $17,152,000 after purchasing an additional 27,122 shares in the last quarter. Finally, Fifth Third Bancorp lifted its holdings in CarMax by 2.0% during the second quarter. Fifth Third Bancorp now owns 9,008 shares of the company's stock valued at $661,000 after purchasing an additional 177 shares in the last quarter.

CarMax Trading Up 3.5 %

The firm has a market cap of $13.05 billion, a price-to-earnings ratio of 31.67, a price-to-earnings-growth ratio of 1.76 and a beta of 1.71. The company's 50-day moving average price is $78.77 and its 200-day moving average price is $77.55. The company has a quick ratio of 0.68, a current ratio of 2.25 and a debt-to-equity ratio of 2.93.

About CarMax

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.