Stock Traders Buy Large Volume of Put Options on CarMax (KMX)

CarMax, Inc (NYSE:KMX) was the target of unusually large options trading activity on Monday. Stock investors bought 9,764 put options on the stock. This is an increase of approximately 1,037% compared to the average volume of 859 put options.

KMX has been the topic of several research reports. Wedbush set a $75.00 price objective on shares of CarMax and gave the stock a “buy” rating in a research note on Tuesday, May 29th. TheStreet upgraded shares of CarMax from a “c+” rating to a “b” rating in a research note on Friday, June 1st. Gabelli initiated coverage on shares of CarMax in a research note on Wednesday, June 6th. They set a “buy” rating and a $95.00 price objective on the stock. ValuEngine upgraded shares of CarMax from a “hold” rating to a “buy” rating in a research note on Friday, June 22nd. Finally, Guggenheim lowered shares of CarMax from a “buy” rating to a “neutral” rating and set a $72.00 price objective on the stock. in a research note on Monday, June 25th. They noted that the move was a valuation call. Nine research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company. CarMax presently has a consensus rating of “Buy” and a consensus price target of $84.07.

In other news, CFO Thomas W. Reedy, Jr. sold 98,858 shares of the stock in a transaction dated Tuesday, July 3rd. The shares were sold at an average price of $74.09, for a total transaction of $7,324,389.22. Following the transaction, the chief financial officer now owns 109,089 shares of the company’s stock, valued at $8,082,404.01. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Charles Joseph Wilson sold 5,938 shares of the stock in a transaction dated Friday, July 6th. The stock was sold at an average price of $76.08, for a total transaction of $451,763.04. Following the transaction, the senior vice president now directly owns 7,979 shares in the company, valued at approximately $607,042.32. The disclosure for this sale can be found here. Insiders have sold 288,293 shares of company stock worth $21,903,363 in the last ninety days. Corporate insiders own 1.97% of the company’s stock.

Large investors have recently made changes to their positions in the business. Archford Capital Strategies LLC acquired a new stake in shares of CarMax in the first quarter valued at approximately $100,000. Piedmont Investment Advisors LLC acquired a new stake in shares of CarMax in the second quarter valued at approximately $149,000. Fuller & Thaler Asset Management Inc. increased its stake in shares of CarMax by 57.7% in the second quarter. Fuller & Thaler Asset Management Inc. now owns 2,050 shares of the company’s stock valued at $149,000 after purchasing an additional 750 shares during the period. Fortis Advisors LLC increased its stake in shares of CarMax by 50.0% in the first quarter. Fortis Advisors LLC now owns 3,000 shares of the company’s stock valued at $186,000 after purchasing an additional 1,000 shares during the period. Finally, Federated Investors Inc. PA acquired a new stake in shares of CarMax in the second quarter valued at approximately $189,000.

KMX opened at $75.88 on Wednesday. The stock has a market cap of $13.80 billion, a P/E ratio of 20.51, a price-to-earnings-growth ratio of 1.15 and a beta of 1.57. CarMax has a fifty-two week low of $57.05 and a fifty-two week high of $81.67. The company has a current ratio of 2.30, a quick ratio of 0.54 and a debt-to-equity ratio of 3.80.

CarMax Company Profile

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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