Some Traders See Unusual Bearish Options Activity in CarMax, Inc

 Some Traders See Unusual Bearish Options Activity in CarMax, Inc

In today’s session CarMax, Inc (KMX) recorded an unusually high (3,014) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the December, 2016 put, expecting serious KMX decrease. With 3,014 contracts traded and 1184 open interest for the Dec, 16 contract, it seems this is a quite bearish bet. The option with symbol: KMX161216P00045000 closed last at: $0.4 or 38.5% down. About 833,254 shares traded hands. CarMax, Inc (NYSE:KMX) has declined 1.62% since April 7, 2016 and is downtrending. It has underperformed by 6.40% the S&P500.

CarMax, Inc (NYSE:KMX) Ratings Coverage

Out of 12 analysts covering Carmax Inc (NYSE:KMX), 5 rate it a “Buy”, 1 “Sell”, while 6 “Hold”. This means 42% are positive. $77 is the highest target while $44 is the lowest. The $64.10 average target is 28.02% above today’s ($50.07) stock price. Carmax Inc has been the topic of 24 analyst reports since August 3, 2015 according to StockzIntelligence Inc. The firm earned “Underperform” rating on Thursday, March 17 by Wolfe Research. Deutsche Bank maintained the shares of KMX in a report on Thursday, September 22 with “Hold” rating. The company was maintained on Friday, April 8 by Deutsche Bank. As per Monday, August 3, the company rating was upgraded by Goldman Sachs. The rating was maintained by Morgan Stanley with “Equal-Weight” on Tuesday, March 29. The rating was maintained by RBC Capital Markets on Monday, December 21 with “Sector Perform”. As per Tuesday, December 15, the company rating was maintained by RBC Capital Markets. The rating was maintained by Wedbush with “Neutral” on Tuesday, January 19. The rating was upgraded by Zacks on Tuesday, August 25 to “Hold”. The rating was initiated by Buckingham Research with “Buy” on Friday, November 13.

According to Zacks Investment Research, “CarMax, Inc. operates as a retailer of used cars. The Company also sells vehicles through on-site wholesale auctions, as well as sells new vehicles under franchise agreements. It operates used car superstores, provides customers with a range of other related products and services, including the appraisal and purchase of vehicles directly from consumers, the sale of extended service plans, guaranteed asset protection and accessories and vehicle repair service. CarMax, Inc. is based in Richmond, Virginia.”

Insitutional Activity: The institutional sentiment increased to 0.91 in 2016 Q2. Its up 0.05, from 0.86 in 2016Q1. The ratio is positive, as 40 funds sold all CarMax, Inc shares owned while 142 reduced positions. 38 funds bought stakes while 128 increased positions. They now own 210.17 million shares or 4.67% less from 220.47 million shares in 2016Q1.
Pineno Levin And Ford Asset Management accumulated 0.1% or 4,025 shares. Citigroup has 29,421 shares for 0% of their US portfolio. Asset Mngmt, a Michigan-based fund reported 19,322 shares. Glob X Mngmt Llc accumulated 0% or 1,466 shares. Invesco Ltd last reported 3.28 million shares in the company. State Street accumulated 7.71M shares or 0.04% of the stock. Manufacturers Life Insurance The, a Ontario – Canada-based fund reported 4.43 million shares. Principal Financial accumulated 7.97M shares or 0.55% of the stock. Ontario Teachers Pension Plan Board holds 0.01% of its portfolio in CarMax, Inc (NYSE:KMX) for 22,115 shares. Brown Advisory Inc reported 3.47M shares or 0.6% of all its holdings. Qs Invsts Lc holds 2,771 shares or 0% of its portfolio. Geode Limited Liability Corporation accumulated 1.53M shares or 0.04% of the stock. Massmutual Trust Fsb Adv holds 0% of its portfolio in CarMax, Inc (NYSE:KMX) for 90,566 shares. Diker Mgmt Ltd holds 0.95% of its portfolio in CarMax, Inc (NYSE:KMX) for 50,000 shares. Diam last reported 18,449 shares in the company.

Insider Transactions: Since July 7, 2016, the stock had 0 insider purchases, and 11 insider sales for $28.60 million net activity. On Thursday, July 21 the insider WYATT NATALIE L sold $81,917. $2.99 million worth of CarMax, Inc (NYSE:KMX) shares were sold by Hill Edwin J. 271,435 CarMax, Inc (NYSE:KMX) shares with value of $15.03 million were sold by FOLLIARD THOMAS J. $510,000 worth of CarMax, Inc (NYSE:KMX) shares were sold by Daniels Jon G. $2.26 million worth of shares were sold by Wood William C Jr. on Friday, August 12. Another trade for 2,000 shares valued at $101,500 was sold by MARGOLIN ERIC M. $3.20M worth of CarMax, Inc (NYSE:KMX) shares were sold by Reedy Thomas W JR.

CarMax, Inc. is a holding company. The company has a market cap of $9.01 billion. The Firm is a retailer of used vehicles. It has a 16.25 P/E ratio. The Firm operates through two divisions: CarMax Sales Operations and CarMax Auto Finance (CAF).

KMX Company Profile

CarMax, Inc. (CarMax), incorporated on October 4, 1996, is a holding company. The Firm is a retailer of used vehicles. The Firm operates through two divisions: CarMax Sales Operations and CarMax Auto Finance (CAF). The Company’s CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF. The Company’s CAF segment consists of its own finance operation that provides vehicle financing through CarMax stores. The Firm operates approximately 160 used car stores in over 70 metropolitan markets. The Company’s services and products include retail merchandising, wholesale auctions, extended protection plans (EPPs), reconditioning and service, and customer credit. It offers clients a range of makes and models of used vehicles, including both domestic and imported vehicles. It provides condition disclosures on each vehicle, including those for vehicles with major mechanical issues, possible frame or flood damage, branded titles, salvage history and unknown true mileage. It performs routine mechanical and minor body repairs in-house; however, for some reconditioning services, including but not limited to services related to manufacturer’s warranties, it engages third parties specializing in those services. The Firm offers financing alternatives for retail clients across a range of the credit spectrum through CAF and arrangements with several financial institutions.

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