CarMax, Inc. (NYSE:KMX) Receives Average Recommendation of “Hold” from Analysts

CarMax, Inc. (NYSE:KMX) has received an average rating of “Hold” from the eleven ratings firms that are currently covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a sell recommendation, four have assigned a hold recommendation and five have assigned a buy recommendation to the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $76.17.

Several analysts recently issued reports on KMX shares. Robert W. Baird cut their target price on CarMax from $88.00 to $84.00 and set an “outperform” rating for the company in a research report on Friday, April 12th. StockNews.com raised shares of CarMax to a “sell” rating in a research report on Monday, April 22nd. Truist Financial decreased their price target on shares of CarMax from $72.00 to $66.00 and set a “hold” rating for the company in a research note on Tuesday. Royal Bank of Canada reissued an “outperform” rating and issued a $83.00 price objective on shares of CarMax in a research note on Monday, April 8th. Finally, Needham & Company LLC dropped their target price on CarMax from $99.00 to $91.00 and set a “buy” rating on the stock in a research report on Friday, April 12th.

CarMax Price Performance

KMX opened at $71.49 on Wednesday. The stock has a market capitalization of $11.25 billion, a P/E ratio of 23.59, a P/E/G ratio of 1.36 and a beta of 1.69. The company has a debt-to-equity ratio of 2.96, a quick ratio of 0.67 and a current ratio of 2.26. The company’s 50-day simple moving average is $70.65 and its two-hundred day simple moving average is $73.74. CarMax has a 52-week low of $59.66 and a 52-week high of $88.22.

CarMax (NYSE:KMX) last posted its quarterly earnings data on Thursday, April 11th. The company reported $0.32 EPS for the quarter, missing the consensus estimate of $0.45 by ($0.13). The company had revenue of $5.63 billion during the quarter, compared to analysts’ expectations of $5.76 billion. CarMax had a return on equity of 7.26% and a net margin of 1.81%. The company’s revenue for the quarter was down 1.7% on a year-over-year basis. During the same quarter last year, the company earned $0.44 earnings per share. As a group, analysts predict that CarMax will post 3.1 EPS for the current year.

Insider Buying and Selling at CarMax

In other news, EVP Diane L. Cafritz sold 15,356 shares of the company’s stock in a transaction dated Tuesday, April 23rd. The stock was sold at an average price of $69.53, for a total value of $1,067,702.68. Following the sale, the executive vice president now owns 6,977 shares in the company, valued at $485,110.81. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 1.66% of the company’s stock.

Institutional Trading of CarMax

Hedge funds have recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in CarMax in the 4th quarter worth $288,278,000. Morningstar Investment Services LLC boosted its holdings in CarMax by 95.4% during the 4th quarter. Morningstar Investment Services LLC now owns 2,717,326 shares of the company’s stock valued at $211,516,000 after acquiring an additional 1,326,840 shares during the period. DAVENPORT & Co LLC boosted its stake in shares of CarMax by 1,327.3% in the first quarter. DAVENPORT & Co LLC now owns 1,023,247 shares of the company’s stock valued at $89,070,000 after purchasing an additional 951,558 shares during the period. American Century Companies Inc. boosted its holdings in CarMax by 674.3% in the third quarter. American Century Companies Inc. now owns 806,716 shares of the company’s stock valued at $57,059,000 after purchasing an additional 702,526 shares during the period. Finally, Epoch Investment Partners Inc. raised its holdings in CarMax by 3,094.0% in the first quarter. Epoch Investment Partners Inc. now owns 596,356 shares of the company’s stock valued at $51,949,000 after acquiring an additional 577,685 shares in the last quarter.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.