Investors Buy Shares of CarMax (KMX) on Weakness

Investors bought shares of CarMax, Inc (NYSE:KMX) on weakness during trading on Wednesday. $52.60 million flowed into the stock on the tick-up and $23.19 million flowed out of the stock on the tick-down, for a money net flow of $29.41 million into the stock. Of all stocks tracked, CarMax had the 30th highest net in-flow for the day. CarMax traded down ($2.33) for the day and closed at $60.98

A number of analysts have recently weighed in on the stock. Credit Suisse Group cut their price target on shares of CarMax from $83.00 to $71.54 and set an “outperform” rating for the company in a report on Friday, January 26th. Oppenheimer raised shares of CarMax from a “market perform” rating to an “outperform” rating and upped their price target for the stock from $80.00 to $88.00 in a report on Thursday, January 18th. Wood & Company raised shares of CarMax from a “market perform” rating to an “outperform” rating and upped their price target for the stock from $80.00 to $88.00 in a report on Thursday, January 18th. UBS Group raised shares of CarMax from a “market perform” rating to an “outperform” rating in a report on Thursday, January 18th. Finally, Wedbush reaffirmed an “outperform” rating and set a $81.00 price target on shares of CarMax in a report on Wednesday, January 10th. Eight research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. The stock presently has an average rating of “Buy” and a consensus price target of $79.68.

The firm has a market cap of $11,028.10, a P/E ratio of 16.49, a P/E/G ratio of 1.07 and a beta of 1.53. The company has a current ratio of 2.70, a quick ratio of 0.51 and a debt-to-equity ratio of 3.83.

CarMax (NYSE:KMX) last issued its quarterly earnings data on Thursday, December 21st. The company reported $0.81 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.82 by ($0.01). The company had revenue of $4.11 billion during the quarter, compared to the consensus estimate of $3.97 billion. CarMax had a net margin of 4.07% and a return on equity of 21.77%. CarMax’s revenue for the quarter was up 11.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.72 EPS. analysts predict that CarMax, Inc will post 3.84 EPS for the current year.

In other news, SVP Darren C. Newberry sold 6,584 shares of the firm’s stock in a transaction on Tuesday, January 16th. The shares were sold at an average price of $72.61, for a total transaction of $478,064.24. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Thomas J. Folliard sold 8,000 shares of the firm’s stock in a transaction on Thursday, February 15th. The shares were sold at an average price of $61.92, for a total transaction of $495,360.00. The disclosure for this sale can be found here. Insiders have sold 74,584 shares of company stock valued at $5,155,424 in the last ninety days. Insiders own 1.70% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in the company. QS Investors LLC raised its stake in shares of CarMax by 1.0% during the second quarter. QS Investors LLC now owns 2,333 shares of the company’s stock valued at $147,000 after acquiring an additional 22 shares during the last quarter. Nippon Life Insurance Co. raised its stake in shares of CarMax by 5.5% during the third quarter. Nippon Life Insurance Co. now owns 13,806 shares of the company’s stock valued at $1,047,000 after acquiring an additional 723 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in shares of CarMax by 27.8% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,380 shares of the company’s stock valued at $217,000 after acquiring an additional 736 shares during the last quarter. Logan Capital Management Inc. raised its stake in shares of CarMax by 6.3% during the fourth quarter. Logan Capital Management Inc. now owns 13,881 shares of the company’s stock valued at $891,000 after acquiring an additional 821 shares during the last quarter. Finally, Raymond James Financial Services Advisors Inc. raised its stake in shares of CarMax by 1.5% during the third quarter. Raymond James Financial Services Advisors Inc. now owns 60,369 shares of the company’s stock valued at $4,577,000 after acquiring an additional 867 shares during the last quarter.

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CarMax Company Profile

CarMax, Inc (CarMax) is a holding company. The Company is a retailer of used vehicles. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The Company’s CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF.

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