CarMax (NYSE:KMX) Issues Earnings Results

CarMax (NYSE:KMX) announced its earnings results on Wednesday. The company reported $1.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.94 by $0.37, RTT News reports. The company had revenue of $8.01 billion during the quarter, compared to analysts’ expectations of $7.42 billion. CarMax had a net margin of 0.96% and a return on equity of 7.00%. During the same quarter in the previous year, the business posted $1.38 earnings per share.

CarMax Stock Down 0.7%

KMX stock opened at $51.83 on Wednesday. The company has a market cap of $7.35 billion, a PE ratio of 32.39, a price-to-earnings-growth ratio of 1.97 and a beta of 1.21. The business has a 50-day simple moving average of $42.26 and a 200 day simple moving average of $42.39. CarMax has a 52 week low of $30.26 and a 52 week high of $71.99. The company has a quick ratio of 0.49, a current ratio of 2.20 and a debt-to-equity ratio of 2.93.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. SRS Investment Management LLC increased its stake in shares of CarMax by 1,717.5% in the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock valued at $217,845,000 after buying an additional 5,327,603 shares during the period. AQR Capital Management LLC increased its position in CarMax by 151.8% during the 4th quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock valued at $306,429,000 after purchasing an additional 4,780,903 shares during the period. Arrowstreet Capital Limited Partnership increased its position in CarMax by 73.7% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock valued at $158,074,000 after purchasing an additional 1,494,205 shares during the period. Renaissance Technologies LLC increased its position in CarMax by 1,467.5% during the 4th quarter. Renaissance Technologies LLC now owns 1,149,000 shares of the company’s stock valued at $44,397,000 after purchasing an additional 1,075,700 shares during the period. Finally, Hawk Ridge Capital Management LP acquired a new stake in CarMax during the 3rd quarter valued at approximately $43,702,000.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on KMX. Wall Street Zen raised shares of CarMax from a “sell” rating to a “hold” rating in a research report on Saturday. Argus raised shares of CarMax to a “hold” rating in a research report on Thursday, April 16th. Barclays boosted their target price on shares of CarMax from $26.00 to $31.00 and gave the company an “underweight” rating in a research report on Friday. UBS Group began coverage on shares of CarMax in a research report on Wednesday, May 27th. They issued a “neutral” rating and a $42.00 target price for the company. Finally, Bank of America began coverage on shares of CarMax in a research report on Wednesday, April 15th. They issued an “underperform” rating and a $40.00 target price for the company. One equities research analyst has rated the stock with a Buy rating, fourteen have given a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, CarMax currently has an average rating of “Reduce” and a consensus price target of $42.40.

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.