CarMax’s (KMX) chief information and technology officer, Mohammad Shamim, recently sold the company’s shares worth $1.05 million. KMX is the largest used car retailer in the U.S.
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According to the most recent SEC filing, Shamim divested 12,845 shares of KMX at a weighted average price of $81.94 per share. These shares were obtained by exercising stock options at $63.04 per share. Importantly, Shamim still owns around 11,738 shares of CarMax stock.
It is worth noting that Shamim has an impressive performance track record. He witnessed a 60% success rate over the past three months and an average return of 6.4% per transaction.
KMX Delivered Strong Financial Performance
The insider sale comes after CarMax reported impressive fiscal Q3 results, which surpassed expectations for both earnings and revenue in December 2024. Despite facing pricing pressures, its earnings increased by 56% on higher sales. During the quarter, the company bought back 1.5 million shares of common stock for $114.8 million.
Following the results, three analysts rated the stock a Buy, two gave it a Hold, and one assigned a Sell rating.
Bearish Insider Sentiment for KMX Stock
On TipRanks, CarMax stock currently has a Very Negative insider confidence signal, based on Informative Sell transactions worth $16 million undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is KMX a Good Stock to Buy Now?
Turning to Wall Street, KMX stock has a Moderate Buy consensus rating based on five Buys, four Holds, and two Sells assigned in the last three months. At $84.36, the average CarMax price target implies a 7.68% upside potential. Shares of the company have gained 7.4% over the past three months.
