Noteworthy Price Action: Is Buying CarMax, Inc Here a Winning Strategy?

Noteworthy Price Action: Is Buying CarMax, Inc Here a Winning Strategy?

The stock of CarMax, Inc (NYSE:KMX) is a huge mover today! About 899,390 shares traded hands. CarMax, Inc (NYSE:KMX) has risen 7.16% since April 28, 2016 and is uptrending. It has outperformed by 1.23% the S&P500.
The move comes after 9 months positive chart setup for the $11.30 billion company. It was reported on Dec, 1 by Barchart.com. We have $61.46 PT which if reached, will make NYSE:KMX worth $452.00 million more.

Analysts await CarMax, Inc (NYSE:KMX) to report earnings on December, 16. They expect $0.71 earnings per share, up 12.70% or $0.08 from last year’s $0.63 per share. KMX’s profit will be $135.75M for 20.81 P/E if the $0.71 EPS becomes a reality. After $0.88 actual earnings per share reported by CarMax, Inc for the previous quarter, Wall Street now forecasts -19.32% negative EPS growth.

CarMax, Inc (NYSE:KMX) Ratings Coverage

Out of 12 analysts covering Carmax Inc (NYSE:KMX), 5 rate it a “Buy”, 1 “Sell”, while 6 “Hold”. This means 42% are positive. Carmax Inc has been the topic of 24 analyst reports since August 3, 2015 according to StockzIntelligence Inc. Susquehanna initiated the stock with “Positive” rating in Friday, August 26 report. As per Friday, September 4, the company rating was downgraded by Vetr. Wedbush maintained it with “Neutral” rating and $70 target price in Tuesday, August 18 report. The rating was downgraded by Sterne Agee CRT on Monday, March 28 to “Neutral”. Deutsche Bank maintained the stock with “Hold” rating in Friday, April 8 report. The stock of CarMax, Inc (NYSE:KMX) earned “Outperform” rating by Oppenheimer on Monday, September 21. Buckingham Research downgraded CarMax, Inc (NYSE:KMX) on Friday, September 9 to “Neutral” rating. Morgan Stanley maintained CarMax, Inc (NYSE:KMX) on Tuesday, March 29 with “Equal-Weight” rating. The firm has “Hold” rating by Deutsche Bank given on Thursday, September 22. The firm earned “Hold” rating on Tuesday, August 25 by Zacks.

According to Zacks Investment Research, “CarMax, Inc. operates as a retailer of used cars. The Company also sells vehicles through on-site wholesale auctions, as well as sells new vehicles under franchise agreements. It operates used car superstores, provides customers with a range of other related products and services, including the appraisal and purchase of vehicles directly from consumers, the sale of extended service plans, guaranteed asset protection and accessories and vehicle repair service. CarMax, Inc. is based in Richmond, Virginia.”

Insitutional Activity: The institutional sentiment decreased to 0.86 in 2016 Q2. Its down 0.05, from 0.91 in 2016Q1. The ratio dropped, as 40 funds sold all CarMax, Inc shares owned while 142 reduced positions. 38 funds bought stakes while 128 increased positions. They now own 210.17 million shares or 4.67% less from 220.47 million shares in 2016Q1.
Moreover, Driehaus Management Lc has 0.1% invested in CarMax, Inc (NYSE:KMX) for 55,342 shares. Raymond James Associate holds 18,339 shares or 0% of its portfolio. Us Commercial Bank De holds 43,509 shares or 0.01% of its portfolio. Ameriprise Fincl Inc has 0% invested in the company for 92,308 shares. Moreover, Vnbtrust Natl Association has 1.94% invested in CarMax, Inc (NYSE:KMX) for 67,397 shares. Calamos Advsr Limited holds 0.01% or 25,406 shares in its portfolio. Sib Ltd Liability Co last reported 3.47% of its portfolio in the stock. Patten Gp Inc last reported 0% of its portfolio in the stock. Blair William & Il accumulated 641,742 shares or 0.29% of the stock. Bb&T Limited Company reported 131,158 shares or 0.1% of all its holdings. Riverpark Advisors Ltd Llc has 159,423 shares for 3.83% of their US portfolio. Cibc Asset Mngmt holds 0.01% or 20,339 shares in its portfolio. Amalgamated Natl Bank, a New York-based fund reported 17,267 shares. Bamco New York reported 1.48M shares or 0.39% of all its holdings. Advisors Asset Management has invested 0% of its portfolio in CarMax, Inc (NYSE:KMX).

Insider Transactions: Since July 7, 2016, the stock had 0 insider purchases, and 11 sales for $28.60 million net activity. The insider MARGOLIN ERIC M sold $3.21M. 1,417 shares were sold by WYATT NATALIE L, worth $81,917 on Thursday, July 21. Hill Edwin J sold $2.99M worth of stock or 51,875 shares. Wood William C Jr. sold $2.26M worth of stock or 37,948 shares. Reedy Thomas W JR sold 57,795 shares worth $3.20M. Another trade for 271,435 shares valued at $15.03M was made by FOLLIARD THOMAS J on Monday, July 18. GARTEN JEFFREY E sold 6,300 shares worth $336,483.

KMX Company Profile

CarMax, Inc. (CarMax), incorporated on October 4, 1996, is a holding company. The Firm is a retailer of used vehicles. The Firm operates through two divisions: CarMax Sales Operations and CarMax Auto Finance (CAF). The Company’s CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF. The Company’s CAF segment consists of its own finance operation that provides vehicle financing through CarMax stores. The Firm operates approximately 160 used car stores in over 70 metropolitan markets. The Company’s services and products include retail merchandising, wholesale auctions, extended protection plans (EPPs), reconditioning and service, and customer credit. It offers clients a range of makes and models of used vehicles, including both domestic and imported vehicles. It provides condition disclosures on each vehicle, including those for vehicles with major mechanical issues, possible frame or flood damage, branded titles, salvage history and unknown true mileage. It performs routine mechanical and minor body repairs in-house; however, for some reconditioning services, including but not limited to services related to manufacturer’s warranties, it engages third parties specializing in those services. The Firm offers financing alternatives for retail clients across a range of the credit spectrum through CAF and arrangements with several financial institutions.

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