CarMax Stock Races Higher After Earnings Beat

The firm cited strong online sales for its earnings and revenue beats

Digital Content Manager
Sep 24, 2019 at 9:44 AM
facebook X logo linkedin


The shares of auto retailer CarMax, Inc (NYSE:KMX) are popping today, after the firm reported second-quarter earnings of $1.40 per share on $5.2 billion in revenue -- both of which topped analysts' expectations. The company cited a boost from online sales for its earnings beat. KMX stock is 3.9% higher at $90.30 at last check, right below its late-July record high of $91.99. 

The used car seller lost 5.1% in August, following its July spike -- snapping its six-month win streak and hitting two-month lows just below the $80 region. However, the equity bounced sharply from this round number, and is now looking at an 8.4% month-to-date gain for September. 

While the brokerage bunch is mostly bullish, some upgrades could be on the horizon, with three of the 12 analysts in coverage still giving KMX stock a "hold" rating. Plus, the consensus 12-month target price of $97.75 is at a slim 8.3% premium to current levels. 

Short sellers have been coming in hot, with these bearish bets up 12.6% in the last two reporting periods -- which likely amplified CarMax's retreat from its all-time peak. The 21.38 million shares now sold short represent almost 13% of the stock's available float, and would take over 13 days to cover, at KMX's average pace of trading. This could set up a short-squeeze situation, should some of these bears begin to retreat. 

 

*SPONSORED CONTENT*

How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.

*SPONSORED CONTENT*