CarMax Stock Crumbles After Earnings Miss

The stock has been struggling to rally from its recent lows

Deputy Editor
Apr 12, 2022 at 10:33 AM
facebook X logo linkedin


CarMax Inc (KMX) stock is experiencing a negative post-earnings reaction after the company's mixed fiscal fourth-quarter results. The used vehicle name reported earnings of 98 cents per share, which is lower than the estimated $1.25 per share, on better-than-expected revenue of $7.69 billion. Plus, the board approved a $2 billion expansion of the company's share repurchase program. 

CarMax stock is down 5% to trade at $98.05. The stock has been struggling to rebound from its April 7, 15-month low of $94.35, with pressure at the $105 level. KMX is down 25.1% year-to-date, with pressure forming at the 40-day moving average. 

Options traders are swarming the security today, with options volume running at 17 times the intraday average, and pacing for the top percentile of its annual range. So far, 15,000 calls and 12,000 puts have crossed the tape. The May 120 call is the most popular, followed by the April 110 call, with positions being sold to open at the former.

Meanwhile, short interest represents 6.8% of the stock's available float. At KMX's average pace of trading, it would take over seven days to buy back these bearish bets. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI