CarMax (NYSE:KMX) Shares Gap Up – Here’s Why

CarMax, Inc. (NYSE:KMX)’s share price gapped up before the market opened on Wednesday . The stock had previously closed at $42.14, but opened at $44.80. CarMax shares last traded at $42.8370, with a volume of 1,397,992 shares trading hands.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Mizuho dropped their price target on shares of CarMax from $46.00 to $36.00 and set a “neutral” rating for the company in a research note on Friday, December 19th. Royal Bank Of Canada raised their price objective on shares of CarMax from $34.00 to $37.00 and gave the company a “sector perform” rating in a research note on Friday, December 19th. Zacks Research raised shares of CarMax from a “strong sell” rating to a “hold” rating in a report on Monday, January 5th. Truist Financial upped their target price on shares of CarMax from $35.00 to $37.00 and gave the company a “hold” rating in a research report on Thursday, December 18th. Finally, Wedbush reduced their price target on CarMax from $40.00 to $36.00 and set a “neutral” rating on the stock in a research report on Friday, December 19th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have assigned a Hold rating and five have assigned a Sell rating to the company’s stock. According to MarketBeat, CarMax currently has a consensus rating of “Reduce” and an average target price of $39.21.

CarMax Trading Down 0.0%

The company has a market capitalization of $5.97 billion, a P/E ratio of 13.90, a PEG ratio of 1.00 and a beta of 1.35. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.99 and a quick ratio of 0.51. The business’s 50-day moving average price is $44.22 and its two-hundred day moving average price is $44.87.

CarMax (NYSE:KMX) last issued its quarterly earnings data on Thursday, December 18th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.31 by $0.12. CarMax had a return on equity of 7.72% and a net margin of 1.77%.The business 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 business posted $0.81 EPS. The firm’s revenue was down 6.9% compared to the same quarter last year. As a group, analysts forecast that CarMax, Inc. will post 3.23 EPS for the current fiscal year.

Institutional Trading of CarMax

A number of large investors have recently bought and sold shares of KMX. Huntington National Bank boosted its holdings in shares of CarMax by 62.4% in the fourth quarter. Huntington National Bank now owns 690 shares of the company’s stock valued at $27,000 after buying an additional 265 shares during the period. CYBER HORNET ETFs LLC acquired a new stake in shares of CarMax during the second quarter worth $28,000. MUFG Securities EMEA plc bought a new stake in CarMax in the 2nd quarter valued at $30,000. Center for Financial Planning Inc. acquired a new position in CarMax in the 3rd quarter worth $31,000. Finally, Advisory Services Network LLC acquired a new position in CarMax in the 3rd quarter worth $32,000.

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.