CarMax Target of Unusually Large Options Trading (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) was the recipient of some unusual options trading activity on Tuesday. Stock traders bought 18,743 call options on the stock. This is an increase of 144% compared to the typical daily volume of 7,673 call options.

Institutional Investors Weigh In On CarMax

Hedge funds have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of CarMax by 0.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,389 shares of the company’s stock valued at $2,446,000 after acquiring an additional 173 shares during the last quarter. Jones Financial Companies Lllp raised its position in CarMax by 3.1% during the 1st quarter. Jones Financial Companies Lllp now owns 5,372 shares of the company’s stock worth $419,000 after purchasing an additional 161 shares during the last quarter. Empowered Funds LLC raised its position in CarMax by 12.5% during the 1st quarter. Empowered Funds LLC now owns 5,273 shares of the company’s stock worth $411,000 after purchasing an additional 585 shares during the last quarter. Intech Investment Management LLC lifted its holdings in CarMax by 61.7% during the 1st quarter. Intech Investment Management LLC now owns 19,143 shares of the company’s stock worth $1,492,000 after buying an additional 7,307 shares during the period. Finally, Acadian Asset Management LLC bought a new stake in shares of CarMax in the 1st quarter valued at about $727,000.

CarMax Price Performance

Shares of NYSE:KMX traded up $0.35 during trading on Wednesday, hitting $46.80. 5,833,447 shares of the company were exchanged, compared to its average volume of 4,151,349. The company has a quick ratio of 0.51, a current ratio of 1.99 and a debt-to-equity ratio of 2.74. CarMax has a 1-year low of $30.26 and a 1-year high of $89.47. The company has a market capitalization of $6.64 billion, a P/E ratio of 15.44, a price-to-earnings-growth ratio of 1.07 and a beta of 1.29. The business’s 50 day moving average is $38.45 and its 200-day moving average is $49.57.

CarMax (NYSE:KMX) last issued its earnings results on Thursday, December 18th. The company reported $0.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.11. CarMax had a return on equity of 7.72% and a net margin of 1.77%.The business had revenue of $5.79 billion during the quarter, compared to analysts’ expectations of $5.66 billion. During the same quarter in the prior year, the firm earned $0.81 EPS. The business’s revenue for the quarter was down 6.9% compared to the same quarter last year. Equities analysts forecast that CarMax will post 3.23 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on KMX. Bank of America increased their price target on shares of CarMax from $27.00 to $31.00 and gave the stock an “underperform” rating in a research report on Friday, December 19th. Mizuho cut their target price on CarMax from $46.00 to $36.00 and set a “neutral” rating for the company in a research note on Friday, December 19th. Evercore ISI reaffirmed a “reduce” rating and issued a $36.00 target price on shares of CarMax in a report on Friday, December 19th. Truist Financial lifted their price target on CarMax from $35.00 to $37.00 and gave the company a “hold” rating in a research note on Thursday, December 18th. Finally, Oppenheimer reissued a “market perform” rating on shares of CarMax in a report on Friday, September 26th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twelve have assigned a Hold rating and six have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and a consensus price target of $39.36.

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.