CarMax (NYSE:KMX) Stock

CarMax

CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.

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6 Stocks Poised To Benefit From A Trade War In Unexpected Ways


President Trump put a 30-day pause on levying 25% tariffs on Canada and Mexico but proceeded to levy an additional 10% tariff on Chinese imports. Trump has also acknowledged that he would be levying tariffs on European

6 Stocks Poised to Benefit From a Trade War in Unexpected Ways

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CarMax Inc

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President Trump put a 30-day pause on levying 25% tariffs on Canada and Mexico but proceeded to levy an additional 10% tariff on Chinese imports. Trump has also acknowledged that he would be levying tariffs on European imports in time. The repercussions of tariffs have been a hotly debated topic. In the event that Trump follows through with his planned 25% tariffs on Canada and Mexico as well as levying similar tariffs to European imports, here are six stocks that could benefit and probably not in the direct way you think.
<h2>Nucor: Soaring Steel Prices Bolster Margins</h2>
As the nation&#39;s largest steel producer, <a href="https://www.marketbeat.com/stocks/NYSE/NUE/">Nucor Co. (NYSE: </a><a class="ticker" href="https://www.benzinga.com/stock/nue#NYSE">NUE</a>) would benefit from the protectionist impact of tariffs just as they did in 2018. By taking on an additional 25% tariff on imported steel, manufacturers would be forced to buy domestic steel. The influx of demand would lead to higher prices.
This is what happened during the 2018 tariffs, when imported steel was too expensive after the 25% tariffs, domestic steel producers also took the opportunity to raise their prices. This resulted in short-term margin expansion, which also led to soaring inflation. However, sustained higher steel prices can also impact demand in the long run.
<h2>CarMax: Higher Steel Prices Mean Higher New Car Prices</h2>
Higher steel prices would result in higher costs being passed onto the consumer. New car prices would increase, making it tougher on consumers. It&#39;s estimated that the 25% tariffs imposed on Mexico and Canada could result in <a href="https://www.freep.com/story/money/cars/2025/02/03/trump-tariffs-new-car-prices-layoffs-canada-mexico/78179356007/">increasing the cost of a new car by $1,000 to $9,000</a>.
This would cause many consumers to consider buying a used vehicle for cheaper without getting smacked by the immediate depreciation once the car is driven off the lot. <a href="https://www.marketbeat.com/stocks/NYSE/KMX/">CarMax Inc. (NYSE: </a><a class="ticker" href="https://www.benzinga.com/stock/kmx#NYSE">KMX</a>) is the nation&#39;s largest used car dealership. They would naturally be the benefactor as customers migrate to their showrooms to purchase used vehicles. The growing demand would result in higher used car prices, leading to margin expansion for CarMax.
<h2>Reborn Coffee: Inflation Sends Commodity Prices Rising</h2>
It is widely believed that levying tariffs on imports will drive inflation higher, especially if retaliatory tariffs are levied on American exports.&nbsp;This can also lead to higher commodity prices, which can bolster margins for coffee roasters like <a href="https://www.marketbeat.com/stocks/NASDAQ/REBN/">Reborn Coffee Inc. (NASDAQ: </a><a class="ticker" href="https://www.benzinga.com/stock/rebn#NASDAQ">REBN</a>).&nbsp;
Coffee prices hit a 27-year high at the end of November 2024. However, that was also driven by forecasts of tightening supply in 2025.
If supply constraints persist, elevated coffee prices could provide continued tailwinds for roasters, though higher costs may eventually pressure consumer demand.
<h2>Kroger: Food Inflation Is Profitable for Food Distributors and Grocers</h2>
Higher inflation may force consumers to tighten their budgets again, but they&#39;ll still need to spend on the necessities in the <a href="https://www.marketbeat.com/stocks/sectors/consumer-staples/">consumer staples sector</a>. Major supermarket chains like <a href="https://www.marketbeat.com/stocks/NYSE/KR/">Kroger Co. (NYSE: </a><a class="ticker" href="https://www.benzinga.com/stock/kr#NYSE">KR</a>) would benefit from expanding margins as they pass on cost increases to customers and add a little extra for themselves.
Additionally, they would also gain from consumers trading down from name brand food items to Kroger&#39;s higher margin&nbsp;<a href="https://www.marketbeat.com/stock-ideas/shoe-carnival-stock-one-size-fits-all-investors/">private label</a> items. This shift could further strengthen Kroger&#39;s pricing power and boost overall profitability amid economic uncertainty.
<h2>Charles Schwab: Rising Interest Rates Boost Net Interest Margin&nbsp;&nbsp;</h2>
If inflation starts rising sharply, it will leave the Federal Reserve no choice but to reverse its interest rate cut policy and raise interest rates. Higher interest rates mean higher net interest income (NII) and margins for banks and brokers. <a href="https://www.marketbeat.com/stocks/NYSE/SCHW/">Charles Schwab Inc. (NYSE: </a><a class="ticker" href="https://www.benzinga.com/stock/schw#NYSE">SCHW</a>) would be a clear benefactor from higher NII as its assets under management (AUM) have grown to more than $10 trillion. They would also collect more interest on margin loans.
This is not a guess but a reality based on precedent. History has shown that rising rates tend to benefit financial institutions, making this scenario more than just speculation.
<h2>Allstate: Interest Income Climbs</h2>
Aside from banks, insurance companies are in the business of holding a ton of cash and cash equivalents. Insurance companies like <a href="https://www.marketbeat.com/stocks/NYSE/ALL/">Allstate Co. (NYSE: </a><a class="ticker" href="https://www.benzinga.com/stock/all#NYSE">ALL</a>) collect a ton of premium, which it invests in cash and liquid interest-bearing instruments and securities like money market funds, CDs, Treasury, and municipal and investment grade bonds.
Higher interest rates equate to higher investment income. As interest rates rise, these investments generate higher yields, boosting overall investment income and profitability.
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The article &quot;<a href="https://www.marketbeat.com/stock-ideas/6-stocks-poised-to-benefit-from-a-trade-war-in-unexpected-ways/">6 Stocks Poised to Benefit From a Trade War in Unexpected Ways</a>&quot; first appeared on MarketBeat.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>UBS cut Uber Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) price target from $114 to $107. UBS analyst Lloyd Walmsley maintained a Buy rating. Uber shares closed at $66.85 on Friday. <a href="https://www.benzinga.com/quote/UBER/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Truist Securities raised the price target for AbbVie Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) from $211 to $217. Truist Securities analyst Srikripa Devarakonda maintained a Buy rating. AbbVie shares closed at $183.90 on Friday. <a href="https://www.benzinga.com/quote/ABBV/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Goldman Sachs raised Atlassian Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TEAM#NASDAQ">TEAM</a>) price target from $245 to $370. Goldman Sachs analyst Kash Rangan maintained a Buy rating. Atlassian shares closed at $306.78 on Friday. <a href="https://www.benzinga.com/quote/TEAM/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Keefe, Bruyette &amp; Woods raised the price target for Trustmark Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TRMK#NASDAQ">TRMK</a>) from $45 to $47. Keefe, Bruyette &amp; Woods analyst Catherine Mealor maintained an Outperform rating. Trustmark shares closed at $37.50 on Friday. <a href="https://www.benzinga.com/quote/TRMK/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Susquehanna raised the price target for Baker Hughes Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKR#NASDAQ">BKR</a>) from $53 to $55. Susquehanna analyst Charles Minervino maintained a Positive rating. Baker Hughes shares closed at $46.18 on Friday. <a href="https://www.benzinga.com/quote/BKR/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Stifel cut e.l.f. Beauty, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELF#NYSE">ELF</a>) price target from $115 to $105. Stifel analyst Mark Astrachan maintained a Hold rating. e.l.f. Beauty shares settled at $99.91 on Friday. <a href="https://www.benzinga.com/quote/ELF/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Telsey Advisory Group raised Tapestry, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPR#NYSE">TPR</a>) price target from $74 to $83. Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating. Tapestry shares closed at $72.94 on Friday. <a href="https://www.benzinga.com/quote/TPR/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Baird increased CrowdStrike Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) price target from $390 to $430. Baird analyst Shrenik Kothari downgraded the stock from Outperform to Neutral. CrowdStrike shares closed at $398.07 on Friday.  <a href="https://www.benzinga.com/quote/CRWD/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Needham raised the price target for CarMax, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) from $98 to $101. Needham analyst Chris Pierce maintained a Buy rating. UPS shares settled at $85.64 on Friday. <a href="https://www.benzinga.com/quote/KMX/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>BMO Capital increased NIKE, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) price target from $92 to $95. BMO Capital analyst Simeon Siegel maintained an Outperform rating. Nike shares closed at $76.90 on Friday. <a href="https://www.benzinga.com/quote/NKE/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
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In the preceding three months, 9 analysts have released ratings for CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>), presenting a wide array of perspectives from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">4</td>
<td align="right">2</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">3</td>
<td align="right">2</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
In the assessment of 12-month price targets, analysts unveil insights for CarMax, presenting an average target of $86.78, a high estimate of $103.00, and a low estimate of $70.00. This current average has increased by 7.29% from the previous average price target of $80.88. 
<img src="https://www.benzinga.com/files/images/story/2025/1738584028_0.png" alt="price target chart" />
<h2>Analyzing Analyst Ratings: A Detailed Breakdown</h2>
The standing of CarMax among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Chris Pierce</td>
<td>Needham</td>
<td>Raises</td>
<td>Buy</td>
<td>$101.00</td>
<td>$98.00</td>
</tr>
<tr>
<td>Rajat Gupta</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Underweight</td>
<td>$72.00</td>
<td>$70.00</td>
</tr>
<tr>
<td>Scot Ciccarelli</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Hold</td>
<td>$88.00</td>
<td>$72.00</td>
</tr>
<tr>
<td>Steven Shemesh</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$103.00</td>
<td>$99.00</td>
</tr>
<tr>
<td>David Bellinger</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Neutral</td>
<td>$80.00</td>
<td>$72.00</td>
</tr>
<tr>
<td>Chris Pierce</td>
<td>Needham</td>
<td>Raises</td>
<td>Buy</td>
<td>$98.00</td>
<td>$90.00</td>
</tr>
<tr>
<td>Rajat Gupta</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Underweight</td>
<td>$70.00</td>
<td>$65.00</td>
</tr>
<tr>
<td>Jeff Lick</td>
<td>Stephens &amp; Co.</td>
<td>Announces</td>
<td>Equal-Weight</td>
<td>$86.00</td>
<td>-</td>
</tr>
<tr>
<td>Michael Montani</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>In-Line</td>
<td>$83.00</td>
<td>$81.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to CarMax. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of CarMax compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of CarMax's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of CarMax's market standing. Stay informed and make data-driven decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/KMX/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on CarMax analyst ratings.</a>
<h2>Unveiling the Story Behind CarMax</h2>
CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.
<h3>CarMax: Financial Performance Dissected</h3>
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Revenue Growth: CarMax's revenue growth over a period of 3 months has faced challenges. As of 30 November, 2024, the company experienced a revenue decline of approximately -11.27%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: CarMax's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.02% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): CarMax's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.02%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): CarMax's ROA excels beyond industry benchmarks, reaching 0.46%. This signifies efficient management of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 3.09, CarMax adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>Understanding the Relevance of Analyst Ratings</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

The Analyst Verdict: CarMax In The Eyes Of 9 Experts

Needham analyst Chris Pierce maintains CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) with a Buy and raises the price target from $98 to $101.

Needham Maintains Buy on CarMax, Raises Price Target to $101

Disclosed in a recent SEC filing on January 30, Tuite, SVP &amp; Chief Product Officer at CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>), made a noteworthy transaction involving the exercise of company stock options.
What Happened: A notable Form 4 filing on Thursday with the <a href="https://www.sec.gov/Archives/edgar/data/0001170010/000117001025000017//Archives/edgar/data/1170010/000117001025000017/0001170010-25-000017-index.htm">U.S. Securities and Exchange Commission</a> revealed that Tuite, SVP &amp; Chief Product Officer at CarMax, exercised stock options for 4,869 shares of KMX, resulting in a transaction value of $43,674.
The Friday morning market activity shows CarMax shares down by 0.01%, trading at $87.58. This implies a total value of $43,674 for Tuite's 4,869 shares.
<h3>All You Need to Know About CarMax</h3>
CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.
<h3>Financial Insights: CarMax</h3>
Revenue Growth: CarMax's revenue growth over a period of 3 months has faced challenges. As of 30 November, 2024, the company experienced a revenue decline of approximately -11.27%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Interpreting Earnings Metrics:
<ul>
<li>
Gross Margin: The company issues a cost efficiency warning with a low gross margin of 10.89%, indicating potential difficulties in maintaining profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): CarMax's EPS reflects a decline, falling below the industry average with a current EPS of 0.81.
</li>
</ul>
Debt Management: CarMax's debt-to-equity ratio is below the industry average at 3.09, reflecting a lower dependency on debt financing and a more conservative financial approach.
Valuation Analysis:
<ul>
<li>
Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 29.79 suggests caution, as the stock may be overvalued in the eyes of investors.
</li>
<li>
Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.53, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With an EV/EBITDA ratio of 18.43, the company's market valuation exceeds industry averages.
</li>
</ul>
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
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<h3>Illuminating the Importance of Insider Transactions</h3>
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
<h3>A Deep Dive into Insider Transaction Codes</h3>
Examining transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001170010">Check Out The Full List Of CarMax's Insider Trades.</a>
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Notable Insider Move: Tyler Tuite Takes Part In Options Exercise At CarMax, Resulting In $43K

WIIM

ARMK

BALY

CENN

CVCO

DECK

DENN

EXPE

GMBL

GOLF

LAUR

LIND

MBLY

MOND

PATK

PRKS

SERV

SGHC

TDUP

UXIN

Shares of companies within the broader consumer discretionary sector are trading higher following softer-than-expected December inflation data.

AENT

ALUR

BKNG

CVNA

New Oriental Education & Technology Group

GROV

MMYT

RIME

SPGC

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Shares of companies within the broader consumer discretionary sector are trading lower amid overall market weakness due to a rise in yields.

Carvana Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVNA#NYSE">CVNA</a>) has been a rollercoaster for investors, with a jaw-dropping 327% rally over the past year overshadowed by a 21.97% dip in <a href="https://www.benzinga.com/quote/CVNA/news">the last month</a>. 
But behind the flashy headlines is a stock chart showing signs of fatigue.
<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent010325&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="629" height="492" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/03042341/Screenshot-2025-01-03-at-2.53.24-PM.png" alt="" class="wp-image-716735" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/03042341/Screenshot-2025-01-03-at-2.53.24-PM.png 629w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/01/03042341/Screenshot-2025-01-03-at-2.53.24-PM-300x235.png 300w" sizes="(max-width: 629px) 100vw, 629px" /></a></figure>
<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent010325&amp;t=be2bearmibe3na1">Chart created using Benzinga Pro</a>
<h2 class="wp-block-heading">Carvana Stock Chart: All Signals Point South</h2>
Carvana&#8217;s stock has dropped below key simple moving averages (Eight, 20 and 50-day), a textbook sign of a bearish trend. Adding to the challenges:
<ul>
<li>The stock&#8217;s price of $199.56 is far below its eight-day SMA of $212.33, signaling bearish short-term momentum.</li>
<li>The gap widens with the 20-day SMA at $231.15 and the 50-day SMA at $235.49, adding further technical pressure.</li>
<li>While the 200-day SMA at $154.62 suggests a bullish longer-term outlook, it offers little solace to short-term traders facing the current downturn.</li>
</ul>
With a MACD of negative 10.08 and an RSI of 28.03, Carvana&#8217;s stock is officially in oversold territory. But oversold doesn't always mean a bargain—sometimes it's just a sign of more trouble ahead.
Read Also: <a href="https://www.benzinga.com/trading-ideas/short-ideas/25/01/42768576/top-2-tech-and-telecom-stocks-that-are-ticking-portfolio-bombs-2">Top 2 Tech And Telecom Stocks That Are Ticking Portfolio Bombs</a>
<h2 class="wp-block-heading">Hindenburg Hits The Brakes</h2>
SShort-seller Hindenburg Research's critical report intensifies bearish sentiment, describing <a href="https://www.benzinga.com/trading-ideas/movers/25/01/42769626/hindenburg-shorts-carvana-stock-claims-used-car-retailers-turnaround-is-a-mirage">Carvana's turnaround a "mirage."</a> Accusations of "accounting manipulation" and "lax underwriting" may not be new, but the timing is impeccable. After all, Carvana has been trading at lofty valuations:
<ul>
<li>Forward P/E of 101—a staggering premium to rivals like CarMax Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) and AutoNation Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AN#NYSE">AN</a>).</li>
<li>Sales multiples 845% higher than its peers.</li>
</ul>
Hindenburg even claims the company is inflating its valuation through $800 million in loan sales to a &#8220;suspected undisclosed related party&#8221; and cites insider selling as further evidence of an overheated stock.
Carvana, however, dismissed Hindenburg&#8217;s report as &#8220;misleading and inaccurate,&#8221; reiterating confidence in its 2025 growth plan, as they responded to Benzinga.
<h2 class="wp-block-heading">What Does This Mean For Investors?</h2>
Despite the short report, Carvana shares showed resilience, bouncing back by over 3% on Thursday after a brief dip. But the bigger question is: can the stock sustain its gains, or is this a dead-cat bounce?
With strong selling pressure and a technical setup favoring bears, investors should tread carefully. While oversold conditions can tempt bottom-fishers, the ongoing bearish signals and fundamental concerns from Hindenburg's report suggest Carvana might be stuck in reverse for now.
For those still holding CVNA, it might be time to brace for turbulence as challenges may lie ahead.
Read Also: 
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<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/12/42713893/benzinga-bulls-and-bears-quantum-computing-tesla-amd-and-whales-buy-270-million-dogecoin-over-4-days">Benzinga Bulls And Bears: Quantum Computing, Tesla, AMD — And Whales Buy 270 Million Dogecoin Over 4 Days</a></li>
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Short Ideas

Technicals

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Carvana Chart Weakens As Momentum Indicators Turn Bearish, Short Report Hits

A large exercise of company stock options by Jon Daniels, SVP at CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) was disclosed in a new SEC filing on December 26, as part of an insider exercise.
What Happened: In an insider options sale disclosed in a Form 4 filing on Thursday with the <a href="https://www.sec.gov/Archives/edgar/data/0001170010/000117001024000136//Archives/edgar/data/1170010/000117001024000136/0001170010-24-000136-index.htm">U.S. Securities and Exchange Commission</a>, Daniels, SVP at CarMax, exercised stock options for 37,845 shares of KMX. The transaction value amounted to $833,914.
During Friday's morning session, CarMax shares down by 0.11%, currently priced at $85.08. Considering the current price, Daniels's 37,845 shares have a total value of $833,914.
<h3>All You Need to Know About CarMax</h3>
CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.
<h3>Financial Insights: CarMax</h3>
Negative Revenue Trend: Examining CarMax's financials over 3 months reveals challenges. As of 30 November, 2024, the company experienced a decline of approximately -11.27% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Navigating Financial Profits:
<ul>
<li>
Gross Margin: The company faces challenges with a low gross margin of 10.89%, suggesting potential difficulties in cost control and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): With an EPS below industry norms, CarMax exhibits below-average bottom-line performance with a current EPS of 0.81.
</li>
</ul>
Debt Management: CarMax's debt-to-equity ratio is below the industry average. With a ratio of 3.09, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Market Valuation:
<ul>
<li>
Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 28.97 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 0.51 is lower than the industry average, implying a discounted valuation for CarMax's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): At 18.22, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.
</li>
</ul>
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
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<h3>Why Pay Attention to Insider Transactions</h3>
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down. 
<h3>Breaking Down the Significance of Transaction Codes</h3>
Surveying the realm of stock transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001170010">Check Out The Full List Of CarMax's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=Be8be9arja3be22in8&amp;utm_source=benzinga-insights">Click here for access</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Major Decision: Jon Daniels Exercises Options, Realizing $833K At CarMax

On December 26, it was revealed in an SEC filing that William Nash, President &amp; CEO at CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) executed a significant exercise of company stock options.
What Happened: In an insider options sale disclosed in a Form 4 filing on Thursday with the <a href="https://www.sec.gov/Archives/edgar/data/0001170010/000117001024000137//Archives/edgar/data/1170010/000117001024000137/0001170010-24-000137-index.htm">U.S. Securities and Exchange Commission</a>, Nash, President &amp; CEO at CarMax, exercised stock options for 120,513 shares of KMX. The transaction value amounted to $2,655,503.
CarMax shares are trading down 0.11% at $85.08 at the time of this writing on Friday morning. Since the current price is $85.08, this makes Nash's 120,513 shares worth $2,655,503.
<h3>All You Need to Know About CarMax</h3>
CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.
<h3>Financial Insights: CarMax</h3>
Decline in Revenue: Over the 3 months period, CarMax faced challenges, resulting in a decline of approximately -11.27% in revenue growth as of 30 November, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Navigating Financial Profits:
<ul>
<li>
Gross Margin: With a low gross margin of 10.89%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): With an EPS below industry norms, CarMax exhibits below-average bottom-line performance with a current EPS of 0.81.
</li>
</ul>
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 3.09.
Valuation Overview:
<ul>
<li>
Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 28.97 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
</li>
<li>
Price to Sales (P/S) Ratio: The current P/S ratio of 0.51 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Boasting an EV/EBITDA ratio of 18.22, CarMax demonstrates a robust market valuation, outperforming industry benchmarks.
</li>
</ul>
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
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<h3>Navigating the Impact of Insider Transactions on Investments</h3>
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
<h3>Important Transaction Codes</h3>
Examining transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001170010">Check Out The Full List Of CarMax's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=Be8be9arja3be22in8&amp;utm_source=benzinga-insights">Click here for access</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

William Nash Exercises Options, Realizes $2.66M

JP Morgan analyst Rajat Gupta maintains CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) with a Underweight and raises the price target from $70 to $72.

JP Morgan Maintains Underweight on CarMax, Raises Price Target to $72

Truist Securities analyst Scot Ciccarelli maintains CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) with a Hold and raises the price target from $72 to $88.

Truist Securities Maintains Hold on CarMax, Raises Price Target to $88

RBC Capital analyst Steven Shemesh maintains CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) with a Outperform and raises the price target from $99 to $103.

RBC Capital Maintains Outperform on CarMax, Raises Price Target to $103

Mizuho analyst David Bellinger maintains CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) with a Neutral and raises the price target from $72 to $80.

Mizuho Maintains Neutral on CarMax, Raises Price Target to $80

Needham analyst Chris Pierce maintains CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) with a Buy and raises the price target from $90 to $98.

Needham Maintains Buy on CarMax, Raises Price Target to $98

The day after a volatile Federal Reserve meeting, Wall Street grappled with the stark reality of Fed Chair <a href="https://www.benzinga.com/topic/jerome-powell">Jerome Powell</a>&#8216;s cautious tone on cutting interest rates in 2024. The message left investors weighing the impact of higher-for-longer interest rates amid<a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42585715/us-gdp-upwardly-revised-to-31-in-q3-jobless-claims-drop-more-than-expected-treasury-yields-hit-7-month-highs"> a still-resilient economy.</a>
Despite the hawkish undertones, stocks managed to stabilize, with major indices posting modest gains as dip-buyers emerged.
The S&amp;P 500 rose 0.5%, recovering from a steep 3% selloff on Wednesday—its worst one-day drop since September 2022. The Dow Jones Industrial Average gained 0.4%, attempting to break a staggering 10-day losing streak, its longest since 1974, while the tech-heavy Nasdaq 100 edged 0.3% higher. 
While equities regained some ground, market conviction remains tepid as investors brace for Friday's release of the November inflation report, a critical data point for the Federal Reserve&#8217;s future policy decisions. The report could either reaffirm the Fed's hawkish stance or inject hope for an <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42598354/wall-street-pins-hopes-on-fridays-crucial-fed-inflation-report-yet-a-miracle-is-needed-to-shift-the-narrative">lower-than-expected data.</a>
Thursday's economic data continued to underscore the resilience of the U.S. economy. Third-quarter GDP growth was upwardly revised from 2.8% to 3.1%, amid strong consumer spending. Weekly jobless claims fell to 220,000 last week, below forecasts of 230,000, signaling a still-tight labor market.
The bond market extended its selloff, with longer-dated Treasuries taking the biggest hit. Fixed-income investors remain under pressure, exacerbated by <a href="https://www.benzinga.com/24/12/42594797/trump-wants-to-get-rid-of-the-debt-ceiling-30-year-treasury-bonds-fall-to-2024-lows-stocks-cut-gains">recent comments from Donald Trump,</a> who floated the idea of eliminating the U.S. debt ceiling entirely—a development that could upend Treasury market dynamics.
In currency markets, the U.S. Dollar Index (DXY) rose 0.2%, hitting its highest level since November 2022, supported by robust economic data.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) remained flat at $100,000, following Wednesday&#8217;s 5.6% plunge.
<h3 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,903.81</td>
<td>0.5%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>42,511.46</td>
<td>0.4%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>21,278.46</td>
<td>0.3%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,228.69</td>
<td>-0.1%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:10 p.m. ET </figcaption></figure>
According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121924&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.5% to $589.79.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 0.5% to $426.40.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) edged 0.3% up to $517.89.</li>
<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) stalled at $220.70. </li>
<li>The&nbsp;Utilities Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) outperformed, up by 1%; the&nbsp;Materials Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) lagged, down 0.6%.</li>
</ul>
<h3 class="wp-block-heading">Thursday&#8217;s Stock Movers</h3>
<ul>
<li>Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) plummeted over 16% after a weaker-than-expected guidance for fiscal 2025, eyeing the worst 1-day drop since March 2020. </li>
<li>Accenture plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACN#NYSE">ACN</a>) rallied over 6% in reaction to stronger-than-expected quarterly earnings.</li>
<li>Other stocks reacting to earnings included Darden Restaurants Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) up 15%, Cintas Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CTAS#NASDAQ">CTAS</a>) down 10%, Paychex Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PAYX#NASDAQ">PAYX</a>), up 2.5%, ConAgra Brands Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAG#NYSE">CAG</a>), down 2%, FactSet Research Systems Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDS#NYSE">FDS</a>) up 3.3%, CarMax Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>), up 4.3%, and Lamb Weston Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LW#NYSE">LW</a>), down 23%. </li>
<li>Major companies slated to report their earnings after the close include FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) and Nike Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>). </li>
</ul>
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<li><a href="https://www.benzinga.com/news/24/12/42598016/whats-going-on-with-applied-materials-amat-stock">What&#8217;s Going On With Applied Materials (AMAT) Stock?</a></li>
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US Stocks Edge Up, Micron Suffers Worst Day Since March 2020, Bond Yields Surge: What's Driving Thursday's  Markets?

U.S. stocks were higher, with the Dow Jones index gaining over 150 points on Thursday.
Shares of Accenture plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACN#NYSE">ACN</a>) rose sharply in today's session after the company reported better-than-expected first-quarter financial results and raised FY25 <a href="https://www.benzinga.com/24/12/42586612/accenture-delivers-q1-revenue-growth-bolstered-by-consulting-and-managed-services">revenue growth outlook</a>.
On Thursday, Accenture reported first-quarter fiscal 2025 sales of $17.69 billion compared with the analyst consensus estimate of $17.12 billion, up 9% year-over-year in U.S. dollars and 5% in local currency.
Accenture shares jumped 7% to $372.09 on Wednesday.
Here are some other big stocks recording gains in today's session.
<ul>
<li>Omeros Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OMER#NASDAQ">OMER</a>) shares jumped 68% to $12.55 after the company's Narsoplimab met pivotal trial primary endpoint.</li>
<li>Soho House &amp; Co Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHCO#NASDAQ">SHCO</a>) gained 54% to $7.57 after the company received a $9.00 per share acquisition offer from a consortium backed by Executive Chairman Ron Burkle and Yucaipa. The board has formed a special committee to evaluate the proposal.</li>
<li>Mesoblast Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MESO#NASDAQ">MESO</a>) rose 35% to $16.55. On Wednesday, the FDA approved Mesoblast's Ryoncil (remestemcel-L) as the first mesenchymal stromal cell (MSC) therapy in the U.S.</li>
<li>Microvast Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MVST#NASDAQ">MVST</a>) gained 21.7% to $1.3990.</li>
<li>Sable Offshore Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOC#NYSE">SOC</a>) surged 20.3% to $23.63.</li>
<li>Prothena Corporation plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PRTA#NASDAQ">PRTA</a>) gained 17.8% to $14.09 after the Phase IIb Prasinezumab study showed potential in early Parkinson&#8217;s disease.</li>
<li>Darden Restaurants, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) rose 14.3% to $182.79 after the company reported better-than-expected second-quarter EPS and issued better-than-expected FY25 revenue outlook.</li>
<li>Innodata Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INOD#NASDAQ">INOD</a>) gained 14.2% to $39.09. Wedbush analyst Daniel Ives initiated coverage on Innodata with an Outperform rating and announced a price target of $48.</li>
<li>Valneva SE (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VALN#NASDAQ">VALN</a>) gained 10.1% to $4.16. Valneva expanded Chikungunya vaccine access in Asia through partnership with Serum Institute.</li>
<li>Tripadvisor, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TRIP#NASDAQ">TRIP</a>) rose 8.8% to $14.10. Tripadvisor and Liberty TripAdvisor announced a planned merger.</li>
<li>Nordstrom, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JWN#NYSE">JWN</a>) shares gained 4.8% to $23.98.</li>
<li>CarMax, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) shares rose 4.5% to $85.08 after the company reported better-than-expected quarterly earnings and sales.</li>
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Accenture Posts Upbeat Results, Joins Darden Restaurants, CarMax And Other Big Stocks Moving Higher On Thursday

CarMax, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) shares are trading higher after the company reported <a target="_blank" href="https://www.benzinga.com/pressreleases/24/12/b42572355/carmax-reports-third-quarter-fiscal-year-2025-results" rel="noreferrer noopener">third-quarter earnings results</a>.
Quarterly sales of&nbsp;$6.223 billion&nbsp;beat the street view of&nbsp;$6.042 billion. The company reported earnings per share of 81 cents, beating the&nbsp;analyst <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">consensus estimate of 64 cents</a>.
CarMax Auto Finance income was&nbsp;$159.9&nbsp;million, an increase of 7.6%&nbsp;year over year, driven by an improvement in CAF&#8217;s net interest margin percentage and higher average managed receivables.
The provision for loan losses was consistent with expectations set at the end of the second quarter of this year.
Retail used unit sales rose by&nbsp;5.4% Y/Y, comparable store used unit sales increased by&nbsp;4.3%&nbsp;Y/Y and wholesale units increased&nbsp;6.3% Y/Y.
Gross profit per retail used unit was&nbsp;$2,306 (flat Y/Y), and gross profit per wholesale unit was&nbsp;$1,015 (up $54 per unit Y/Y). The Extended Protection Plan margin increased by&nbsp;$53&nbsp;per retail unit to&nbsp;$573.
In the third quarter of fiscal year 2025, the company repurchased 1.5 million shares of common stock for $114.8 million. As of November 30, 2024, the company had $2.04 billion remaining available for repurchase under the outstanding authorization.
The company exited the quarter with cash and equivalents worth&nbsp;$271.9 million. Restricted cash from collections on auto loans receivable totaled $541.15 million. Inventories at quarter-end was&nbsp;$3.665 billion.
Bill Nash, president and chief executive officer, said, &#8221;Our solid execution and a more stable environment for vehicle valuations enabled us to deliver robust EPS growth driven by increases in unit sales and buys, solid margins, growth in CAF income, and ongoing management of SG&amp;A.&#8221;&nbsp;
During the&nbsp;third quarter&nbsp;of fiscal 2025, the company opened one new store in Alliance, Texas.
Investors can gain exposure to the stock via Valued Advisers Trust Kovitz Core Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQTY#NYSE">EQTY</a>) and Invesco Bloomberg Analyst Rating Improvers ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPGD#NYSE">UPGD</a>).
Price Action: KMX shares are trading higher by 6.44% to $86.66 premarket at last check Thursday.
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Photo via Shutterstock.

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CarMax Q3 Earnings: Solid Growth In Auto Finance Income, Retail And Wholesale Units

CarMax shares are trading higher after the company reported better-than-expected Q3 earnings and sales.

CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) reported quarterly earnings of $0.81 per share which beat the analyst consensus estimate of $0.64 by 26.56 percent. The company reported quarterly sales of $6.223 billion which beat the analyst consensus estimate of $6.042 billion by 3.01 percent. This is a 1.21 percent increase over sales of $6.149 billion the same period last year.

Earnings Beats

CarMax Q3 2025 GAAP EPS $0.81 Beats $0.64 Estimate, Sales $6.223B Beat $6.042B Estimate

Press Releases

CarMax Shows the Way Car Buying Shouldn't Be in "Beetlejuice Beetlejuice" Universe

RICHMOND FLYING SQUIRRELS AND CARMAX ANNOUNCE NEW BALLPARK AND ENTERTAINMENT VENUE AS CARMAX PARK

CarMax Announces Second Quarter Conference Call

CarMax Earns Spot on Fortune's Best Workplaces in Retail List for the Tenth Consecutive Year

CarMax Reports Second Quarter Fiscal Year 2025 Results

CarMax Announces Third Quarter Conference Call

GOLDEN STATE VALKYRIES ANNOUNCE CARMAX AS FOUNDING PARTNER

CarMax Reports Third Quarter Fiscal Year 2025 Results

CarMax Announces 12 Hiring Events for Automotive Technicians and Service Professionals on February 20

ANGEL CITY FOOTBALL CLUB ANNOUNCES NEW PARTNERSHIP WITH CARMAX

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