CarMax, Inc. (NYSE:KMX) Sees Large Decrease in Short Interest

CarMax, Inc. (NYSE:KMX) was the recipient of a large decrease in short interest during the month of January. As of January 31st, there was short interest totalling 12,060,000 shares, a decrease of 7.0% from the January 15th total of 12,970,000 shares. Approximately 7.9% of the shares of the stock are sold short. Based on an average trading volume of 1,870,000 shares, the days-to-cover ratio is presently 6.4 days.

Wall Street Analysts Forecast Growth

KMX has been the subject of several research analyst reports. Mizuho lifted their target price on CarMax from $72.00 to $80.00 and gave the stock a “neutral” rating in a research report on Friday, December 20th. Royal Bank of Canada raised their price target on CarMax from $92.00 to $99.00 and gave the company an “overweight” rating in a research note on Thursday, December 19th. Truist Financial raised their price target on CarMax from $72.00 to $88.00 and gave the company a “hold” rating in a research note on Friday, December 20th. Stephens initiated coverage on CarMax in a research note on Thursday, December 5th. They issued an “equal weight” rating and a $86.00 target price on the stock. Finally, Evercore ISI upgraded CarMax from an “in-line” rating to an “outperform” rating and lifted their target price for the company from $90.00 to $110.00 in a research note on Thursday, February 6th. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating and seven have issued a buy rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $87.50.

Insider Activity

In related news, SVP Tyler Tuite sold 4,869 shares of the firm’s stock in a transaction on Tuesday, January 28th. The stock was sold at an average price of $84.58, for a total value of $411,820.02. Following the completion of the sale, the senior vice president now directly owns 227 shares in the company, valued at $19,199.66. This trade represents a 95.55 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Jon G. Daniels sold 10,000 shares of the firm’s stock in a transaction on Thursday, December 26th. The stock was sold at an average price of $85.30, for a total value of $853,000.00. Following the completion of the sale, the senior vice president now owns 995 shares of the company’s stock, valued at approximately $84,873.50. This represents a 90.95 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 264,467 shares of company stock worth $21,915,445. 1.66% of the stock is currently owned by insiders.

Institutional Investors Weigh In On CarMax

A number of institutional investors and hedge funds have recently modified their holdings of KMX. Catalyst Capital Advisors LLC acquired a new stake in shares of CarMax during the third quarter worth about $32,000. True Wealth Design LLC lifted its holdings in CarMax by 4,844.4% in the third quarter. True Wealth Design LLC now owns 445 shares of the company’s stock valued at $34,000 after acquiring an additional 436 shares during the period. Cromwell Holdings LLC lifted its holdings in CarMax by 104.8% in the fourth quarter. Cromwell Holdings LLC now owns 424 shares of the company’s stock valued at $35,000 after acquiring an additional 217 shares during the period. Allworth Financial LP lifted its holdings in CarMax by 62.7% in the fourth quarter. Allworth Financial LP now owns 646 shares of the company’s stock valued at $51,000 after acquiring an additional 249 shares during the period. Finally, Larson Financial Group LLC lifted its holdings in CarMax by 91.9% in the third quarter. Larson Financial Group LLC now owns 737 shares of the company’s stock valued at $57,000 after acquiring an additional 353 shares during the period.

CarMax Stock Up 0.4 %

NYSE KMX traded up $0.38 during trading on Tuesday, hitting $89.28. The company’s stock had a trading volume of 1,542,178 shares, compared to its average volume of 1,577,692. The company has a debt-to-equity ratio of 2.92, a current ratio of 2.30 and a quick ratio of 0.55. The company has a market cap of $13.73 billion, a PE ratio of 30.26, a P/E/G ratio of 1.70 and a beta of 1.72. The business’s 50 day simple moving average is $83.47 and its 200-day simple moving average is $79.93. CarMax has a fifty-two week low of $65.83 and a fifty-two week high of $91.25.

CarMax (NYSE:KMX) last released its earnings results on Thursday, December 19th. The company reported $0.81 EPS for the quarter, topping analysts’ consensus estimates of $0.62 by $0.19. CarMax had a return on equity of 7.49% and a net margin of 1.77%. The firm had revenue of $6.22 billion during the quarter, compared to the consensus estimate of $6.05 billion. During the same quarter in the previous year, the company posted $0.52 earnings per share. The company’s revenue was up 1.2% compared to the same quarter last year. On average, equities analysts anticipate that CarMax will post 3.22 EPS for the current fiscal year.

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.