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

CarMax, Inc (NYSE:KMX) was the recipient of some unusual options trading on Thursday. Investors acquired 14,122 call options on the stock. This represents an increase of approximately 1,875% compared to the average daily volume of 715 call options.

NYSE KMX traded down $0.42 during trading on Friday, hitting $77.00. 1,438,808 shares of the stock traded hands, compared to its average volume of 2,243,402. The stock has a market capitalization of $13.10 billion, a PE ratio of 16.08, a P/E/G ratio of 1.23 and a beta of 1.28. The company has a debt-to-equity ratio of 4.11, a current ratio of 2.45 and a quick ratio of 0.53. CarMax has a 12-month low of $55.24 and a 12-month high of $81.67.

CarMax (NYSE:KMX) last announced its earnings results on Friday, March 29th. The company reported $1.13 EPS for the quarter, topping the Zacks’ consensus estimate of $1.04 by $0.09. The firm had revenue of $4.32 billion during the quarter, compared to analysts’ expectations of $4.36 billion. CarMax had a return on equity of 24.67% and a net margin of 4.64%. The company’s quarterly revenue was up 5.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.88 EPS. On average, analysts anticipate that CarMax will post 5.13 EPS for the current fiscal year.

In related news, SVP Diane L. Cafritz sold 3,484 shares of the company’s stock in a transaction that occurred on Wednesday, April 3rd. The stock was sold at an average price of $71.04, for a total transaction of $247,503.36. Following the completion of the transaction, the senior vice president now owns 11,331 shares in the company, valued at $804,954.24. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Thomas J. Folliard sold 360,006 shares of the stock in a transaction on Wednesday, April 3rd. The stock was sold at an average price of $71.18, for a total value of $25,625,227.08. Following the completion of the transaction, the director now owns 511,879 shares of the company’s stock, valued at approximately $36,435,547.22. The disclosure for this sale can be found here. Insiders sold 383,655 shares of company stock valued at $27,437,638 in the last quarter. Corporate insiders own 1.97% of the company’s stock.

Several institutional investors have recently made changes to their positions in the company. Liberty Wealth Management LLC purchased a new position in CarMax during the 1st quarter valued at $39,000. Highland Capital Management LLC bought a new stake in CarMax during the 1st quarter valued at $1,174,000. IFM Investors Pty Ltd raised its position in CarMax by 14.5% during the 1st quarter. IFM Investors Pty Ltd now owns 12,226 shares of the company’s stock valued at $853,000 after purchasing an additional 1,547 shares in the last quarter. Wedbush Securities Inc. raised its position in CarMax by 15.0% during the 1st quarter. Wedbush Securities Inc. now owns 8,993 shares of the company’s stock valued at $628,000 after purchasing an additional 1,170 shares in the last quarter. Finally, Nisa Investment Advisors LLC raised its position in CarMax by 0.3% during the 1st quarter. Nisa Investment Advisors LLC now owns 103,518 shares of the company’s stock valued at $7,226,000 after purchasing an additional 300 shares in the last quarter.

Several research firms recently commented on KMX. Morgan Stanley increased their price objective on CarMax from $89.00 to $93.00 and gave the company an “overweight” rating in a research report on Wednesday. Credit Suisse Group raised their target price on CarMax from $75.00 to $84.00 and gave the stock an “outperform” rating in a research report on Wednesday. Zacks Investment Research cut CarMax from a “buy” rating to a “hold” rating in a research report on Monday, April 15th. Stephens raised CarMax from an “equal weight” rating to an “overweight” rating and raised their price objective for the stock from $83.00 to $93.00 in a research note on Monday, April 1st. Finally, Buckingham Research raised their price objective on CarMax from $76.00 to $81.00 and gave the stock a “buy” rating in a research note on Monday, April 1st. Three investment analysts have rated the stock with a hold rating and ten have given a buy rating to the company. The company has a consensus rating of “Buy” and an average price target of $82.00.

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About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles; vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions; and extended protection plans to customers at the time of sale.

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