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

CarMax, Inc. (NYSE:KMX) has been assigned an average recommendation of “Hold” from the thirteen ratings firms that are covering the firm, MarketBeat reports. Three investment analysts have rated the stock with a sell rating, four have assigned a hold rating and six have assigned a buy rating to the company. The average 12 month target price among brokers that have covered the stock in the last year is $79.73.

A number of analysts recently weighed in on the company. Wedbush restated an “outperform” rating and issued a $95.00 price target on shares of CarMax in a research note on Wednesday, October 16th. Royal Bank of Canada restated an “outperform” rating and issued a $82.00 price target on shares of CarMax in a report on Wednesday, October 16th. Oppenheimer restated an “outperform” rating and set a $105.00 target price on shares of CarMax in a research report on Friday, October 4th. JPMorgan Chase & Co. increased their price target on shares of CarMax from $55.00 to $65.00 and gave the company an “underweight” rating in a research report on Thursday, September 19th. Finally, Truist Financial boosted their price target on CarMax from $70.00 to $75.00 and gave the stock a “hold” rating in a report on Monday, September 23rd.

CarMax Stock Performance

Shares of CarMax stock opened at $76.66 on Friday. The firm’s fifty day simple moving average is $75.10 and its 200-day simple moving average is $75.62. CarMax has a 12 month low of $62.90 and a 12 month high of $88.22. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.25 and a quick ratio of 0.68. The stock has a market capitalization of $11.88 billion, a price-to-earnings ratio of 28.82, a PEG ratio of 1.59 and a beta of 1.68.

CarMax (NYSE:KMX) last announced its earnings results on Thursday, September 26th. The company reported $0.85 earnings per share for the quarter, missing the consensus estimate of $0.86 by ($0.01). CarMax had a net margin of 1.61% and a return on equity of 6.83%. The company had revenue of $7.01 billion during the quarter, compared to analysts’ expectations of $6.83 billion. During the same quarter last year, the business posted $0.75 earnings per share. The company’s revenue for the quarter was down .9% compared to the same quarter last year. As a group, equities analysts forecast that CarMax will post 2.99 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Baker Tilly Wealth Management LLC grew its stake in shares of CarMax by 4.6% during the 2nd quarter. Baker Tilly Wealth Management LLC now owns 2,959 shares of the company’s stock valued at $217,000 after buying an additional 130 shares during the period. Peoples Bank KS grew its position in CarMax by 10.0% during the second quarter. Peoples Bank KS now owns 1,479 shares of the company’s stock valued at $108,000 after acquiring an additional 135 shares during the period. Arete Wealth Advisors LLC increased its stake in CarMax by 4.3% during the third quarter. Arete Wealth Advisors LLC now owns 3,438 shares of the company’s stock worth $266,000 after acquiring an additional 141 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in CarMax by 2.3% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 6,220 shares of the company’s stock worth $456,000 after acquiring an additional 142 shares during the last quarter. Finally, Allegheny Financial Group LTD grew its holdings in shares of CarMax by 4.1% during the 2nd quarter. Allegheny Financial Group LTD now owns 3,597 shares of the company’s stock worth $264,000 after purchasing an additional 143 shares during the period.

CarMax Company Profile

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.