Short Interest in CarMax, Inc (NYSE:KMX) Increases By 30.8%

CarMax, Inc (NYSE:KMX) was the target of a significant increase in short interest in May. As of May 31st, there was short interest totalling 21,232,900 shares, an increase of 30.8% from the April 30th total of 16,228,800 shares. Approximately 12.5% of the shares of the company are short sold. Based on an average daily volume of 1,760,000 shares, the days-to-cover ratio is currently 12.1 days.

Several equities research analysts have commented on KMX shares. Credit Suisse Group set a €21.78 ($25.33) price target on shares of Deutsche Lufthansa and gave the stock a “buy” rating in a research report on Monday, June 17th. Northcoast Research cut shares of CarMax from a “buy” rating to a “neutral” rating and set a $86.50 price target on the stock. in a research report on Friday, June 28th. Royal Bank of Canada dropped their price target on shares of from GBX 845 ($11.04) to GBX 800 ($10.45) and set an “outperform” rating on the stock in a research report on Wednesday, June 19th. Buckingham Research cut Westinghouse Air Brake Technologies from a “buy” rating to a “neutral” rating and dropped their price target for the stock from $93.00 to $81.00 in a research note on Monday, June 24th. Finally, Robert W. Baird lifted their price target on CarMax from $80.00 to $99.00 and gave the stock an “outperform” rating in a research note on Monday, June 24th. Three equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. The company has an average rating of “Buy” and an average price target of $93.81.

Shares of NYSE KMX traded down $0.17 during trading hours on Wednesday, hitting $87.41. The stock had a trading volume of 1,116,495 shares, compared to its average volume of 1,837,850. The firm has a market capitalization of $14.51 billion, a P/E ratio of 18.25, a P/E/G ratio of 1.34 and a beta of 1.21. The company’s 50-day moving average price is $82.48. CarMax has a 52 week low of $55.24 and a 52 week high of $89.28. The company has a quick ratio of 0.49, a current ratio of 2.21 and a debt-to-equity ratio of 4.20.

CarMax (NYSE:KMX) last announced its quarterly earnings results on Friday, June 21st. The company reported $1.59 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.49 by $0.10. The business had revenue of $5.37 billion during the quarter, compared to analysts’ expectations of $5.17 billion. CarMax had a return on equity of 25.37% and a net margin of 4.64%. The firm’s quarterly revenue was up 12.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.33 EPS. Equities research analysts anticipate that CarMax will post 5.27 earnings per share for the current fiscal year.

In related news, SVP Mohammad Shamim sold 15,782 shares of CarMax stock in a transaction dated Tuesday, June 25th. The shares were sold at an average price of $83.88, for a total transaction of $1,323,794.16. Following the sale, the senior vice president now directly owns 18,606 shares in the company, valued at $1,560,671.28. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO William D. Nash sold 86,762 shares of CarMax stock in a transaction dated Tuesday, June 25th. The shares were sold at an average price of $83.53, for a total transaction of $7,247,229.86. Following the sale, the chief executive officer now owns 173,546 shares in the company, valued at $14,496,297.38. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 355,362 shares of company stock worth $29,737,039. Company insiders own 2.09% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Citizens Financial Group Inc RI acquired a new stake in CarMax in the 4th quarter worth approximately $33,000. Liberty Wealth Management LLC acquired a new stake in CarMax in the 1st quarter worth approximately $39,000. Semmax Financial Advisors Inc. acquired a new stake in CarMax in the 4th quarter worth approximately $48,000. Enlightenment Research LLC acquired a new stake in CarMax in the 4th quarter worth approximately $50,000. Finally, Carroll Financial Associates Inc. lifted its holdings in CarMax by 181.1% in the 2nd quarter. Carroll Financial Associates Inc. now owns 759 shares of the company’s stock worth $65,000 after purchasing an additional 489 shares during the last quarter.

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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