Stock Traders Purchase Large Volume of CarMax Call Options (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) was the target of some unusual options trading activity on Tuesday. Stock investors purchased 18,743 call options on the company. This is an increase of 144% compared to the average volume of 7,673 call options.

CarMax Stock Performance

NYSE:KMX traded up $0.91 during mid-day trading on Tuesday, hitting $45.61. The stock had a trading volume of 1,807,624 shares, compared to its average volume of 3,655,618. The company has a 50 day simple moving average of $38.33 and a 200-day simple moving average of $49.71. CarMax has a 52 week low of $30.26 and a 52 week high of $89.47. The company has a current ratio of 1.99, a quick ratio of 0.51 and a debt-to-equity ratio of 2.74. The stock has a market capitalization of $6.47 billion, a price-to-earnings ratio of 15.05, a P/E/G ratio of 1.09 and a beta of 1.29.

CarMax (NYSE:KMX) last announced its earnings results on Thursday, December 18th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.32 by $0.11. CarMax had a net margin of 1.77% and a return on equity of 7.72%. The firm had revenue of $5.79 billion for the quarter, compared to the consensus estimate of $5.66 billion. During the same quarter last year, the firm posted $0.81 EPS. The business’s quarterly revenue was down 6.9% on a year-over-year basis. On average, research analysts expect that CarMax will post 3.23 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

KMX has been the topic of a number of research analyst reports. Mizuho reduced their target price on CarMax from $46.00 to $36.00 and set a “neutral” rating on the stock in a report on Friday, December 19th. Oppenheimer restated a “market perform” rating on shares of CarMax in a report on Friday, September 26th. JPMorgan Chase & Co. dropped their price target on CarMax from $30.00 to $28.00 and set an “underweight” rating on the stock in a research note on Friday, December 19th. Seaport Res Ptn cut CarMax from a “strong-buy” rating to a “hold” rating in a research report on Sunday, September 28th. Finally, Morgan Stanley set a $35.00 target price on shares of CarMax in a research note on Monday, December 8th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have issued a Hold rating and six have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Reduce” and an average price target of $39.36.

Institutional Trading of CarMax

Institutional investors and hedge funds have recently bought and sold shares of the stock. CYBER HORNET ETFs LLC bought a new position in CarMax in the 2nd quarter valued at $28,000. MUFG Securities EMEA plc bought a new stake in CarMax during the 2nd quarter valued at approximately $30,000. Center for Financial Planning Inc. bought a new stake in shares of CarMax during the third quarter valued at approximately $31,000. Advisory Services Network LLC bought a new position in CarMax in the third quarter valued at about $32,000. Finally, True Wealth Design LLC lifted its position in shares of CarMax by 54.3% in the fourth quarter. True Wealth Design LLC now owns 907 shares of the company’s stock valued at $35,000 after acquiring an additional 319 shares in 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.