CarMax (NYSE:KMX) Reaches New 52-Week High – Should You Buy?

CarMax, Inc. (NYSE:KMX) shares hit a new 52-week high during trading on Friday . The stock traded as high as $62.99 and last traded at $62.76, with a volume of 361781 shares traded. The stock had previously closed at $61.05.

Analyst Upgrades and Downgrades

Several research firms recently commented on KMX. Morgan Stanley increased their price objective on CarMax from $35.00 to $44.00 and gave the company an “equal weight” rating in a research note on Tuesday, June 23rd. Wall Street Zen raised shares of CarMax from a “sell” rating to a “hold” rating in a research note on Saturday, June 13th. Mizuho upped their target price on shares of CarMax from $38.00 to $43.00 and gave the stock a “neutral” rating in a report on Thursday, June 18th. Robert W. Baird increased their target price on shares of CarMax from $48.00 to $55.00 and gave the company an “outperform” rating in a research report on Thursday, June 18th. Finally, Bank of America raised their price target on shares of CarMax from $40.00 to $45.00 and gave the stock an “underperform” rating in a research note on Wednesday, June 17th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, fourteen have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, CarMax currently has an average rating of “Hold” and an average price target of $51.00.

CarMax Price Performance

The stock has a 50 day simple moving average of $55.65 and a two-hundred day simple moving average of $46.98. The company has a market cap of $8.82 billion, a price-to-earnings ratio of 40.61, a price-to-earnings-growth ratio of 2.84 and a beta of 1.15. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82.

CarMax (NYSE:KMX) last issued its earnings results 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 return on equity of 6.64% and a net margin of 0.84%.The business had revenue of $8.01 billion during the quarter, compared to the consensus estimate of $7.42 billion. During the same period last year, the company earned $1.38 EPS. The company’s revenue for the quarter was up 6.2% on a year-over-year basis. On average, equities research analysts predict that CarMax, Inc. will post 2.73 earnings per share for the current fiscal year.

Insider Transactions at CarMax

In other news, Director Peter J. Bensen purchased 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, with a total value of $130,500.00. Following the transaction, the director owned 24,796 shares in the company, valued at $1,294,351.20. This represents a 11.21% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Keith Barr purchased 9,400 shares of CarMax stock in a transaction dated Monday, June 22nd. The shares were purchased at an average cost of $53.01 per share, for a total transaction of $498,294.00. Following the transaction, the chief executive officer owned 33,375 shares in the company, valued at approximately $1,769,208.75. This trade represents a 39.21% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought 13,900 shares of company stock worth $735,574 in the last 90 days. Insiders own 1.01% of the company’s stock.

Hedge Funds Weigh In On CarMax

Several large investors have recently modified their holdings of the business. Basecamp Wealth Advisors LLC raised its holdings in CarMax by 105.8% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company’s stock valued at $26,000 after buying an additional 327 shares during the period. Huntington National Bank raised its stake in shares of CarMax by 62.4% in the 4th quarter. Huntington National Bank now owns 690 shares of the company’s stock valued at $27,000 after acquiring an additional 265 shares during the period. CYBER HORNET ETFs LLC purchased a new stake in shares of CarMax in the 2nd quarter valued at approximately $28,000. Global Retirement Partners LLC purchased a new stake in shares of CarMax in the 2nd quarter valued at approximately $29,000. Finally, Wellington Grp LLC lifted its holdings in shares of CarMax by 6,500.0% in the 1st quarter. Wellington Grp LLC now owns 726 shares of the company’s stock worth $30,000 after acquiring an additional 715 shares during the last quarter.

CarMax Company Profile

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.