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

CarMax, Inc. (NYSE:KMX) saw unusually large options trading on Friday. Investors bought 7,378 call options on the company. This represents an increase of approximately 133% compared to the average daily volume of 3,165 call options.

CarMax Trading Up 1.0 %

Shares of NYSE KMX traded up $0.67 during midday trading on Friday, hitting $67.12. The stock had a trading volume of 1,771,301 shares, compared to its average volume of 2,118,763. The firm has a market cap of $10.32 billion, a P/E ratio of 22.84, a price-to-earnings-growth ratio of 1.67 and a beta of 1.58. CarMax has a fifty-two week low of $63.23 and a fifty-two week high of $91.25. The company has a debt-to-equity ratio of 2.92, a current ratio of 2.30 and a quick ratio of 0.55. The company’s 50-day simple moving average is $78.93 and its 200 day simple moving average is $79.20.

Insiders Place Their Bets

In other CarMax news, VP Jill A. Livesay sold 13,009 shares of the firm’s stock in a transaction dated Wednesday, January 15th. The shares were sold at an average price of $81.00, for a total transaction of $1,053,729.00. Following the completion of the transaction, the vice president now owns 9,448 shares in the company, valued at $765,288. This trade represents a 57.93 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Tyler Tuite sold 4,869 shares of the company’s stock in a transaction that occurred on Tuesday, January 28th. The shares were sold at an average price of $84.58, for a total value of $411,820.02. Following the completion of the sale, the senior vice president now owns 227 shares in the company, valued at approximately $19,199.66. This represents a 95.55 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 22,878 shares of company stock worth $1,872,699. 1.66% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On CarMax

Several hedge funds have recently added to or reduced their stakes in the company. Principal Financial Group Inc. lifted its position in CarMax by 3.4% during the 4th quarter. Principal Financial Group Inc. now owns 8,591,297 shares of the company’s stock valued at $702,425,000 after purchasing an additional 282,519 shares during the period. Kovitz Investment Group Partners LLC raised its stake in shares of CarMax by 348.0% during the fourth quarter. Kovitz Investment Group Partners LLC now owns 6,595,067 shares of the company’s stock worth $539,213,000 after buying an additional 5,122,850 shares during the last quarter. Norges Bank bought a new stake in shares of CarMax during the fourth quarter worth approximately $423,187,000. Janus Henderson Group PLC lifted its holdings in CarMax by 0.6% in the fourth quarter. Janus Henderson Group PLC now owns 4,671,950 shares of the company’s stock valued at $381,978,000 after buying an additional 29,715 shares during the period. Finally, Geode Capital Management LLC raised its position in shares of CarMax by 1.3% during the 4th quarter. Geode Capital Management LLC now owns 3,710,267 shares of the company’s stock valued at $302,564,000 after acquiring an additional 47,058 shares during the last quarter.

Analyst Ratings Changes

Several research analysts have issued reports on KMX shares. Evercore ISI dropped their price objective on CarMax from $107.00 to $105.00 and set an “outperform” rating for the company in a research note on Tuesday, March 11th. Needham & Company LLC dropped their target price on shares of CarMax from $101.00 to $92.00 and set a “buy” rating for the company in a research report on Friday. Royal Bank of Canada reduced their price target on shares of CarMax from $103.00 to $80.00 and set an “outperform” rating on the stock in a research report on Friday. Stephens raised shares of CarMax from an “equal weight” rating to an “overweight” rating and raised their price objective for the stock from $86.00 to $90.00 in a report on Wednesday, March 26th. Finally, JPMorgan Chase & Co. reduced their target price on CarMax from $72.00 to $65.00 and set an “underweight” rating on the stock in a report on Thursday, March 27th. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating and eight have assigned a buy rating to the company. According to data from MarketBeat.com, CarMax presently has an average rating of “Hold” and a consensus price target of $87.73.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.