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

Shares of CarMax, Inc. (NYSE:KMX) have been assigned an average recommendation of “Hold” from the twenty ratings firms that are presently covering the firm, MarketBeat.com reports. Three analysts have rated the stock with a sell recommendation, fourteen have given a hold recommendation, two have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $51.00.

KMX has been the topic of a number of recent research reports. Morgan Stanley upped their price objective on CarMax from $35.00 to $44.00 and gave the company an “equal weight” rating in a research report on Tuesday, June 23rd. UBS Group set a $60.00 target price on CarMax in a report on Wednesday, July 29th. Robert W. Baird boosted their target price on CarMax from $48.00 to $55.00 and gave the company an “outperform” rating in a research report on Thursday, June 18th. Barclays upgraded CarMax from an “underweight” rating to an “equal weight” rating and increased their price target for the company from $37.00 to $61.00 in a report on Tuesday, July 21st. Finally, Royal Bank Of Canada raised their price target on CarMax from $41.00 to $45.00 and gave the stock a “sector perform” rating in a research report on Thursday, June 18th.

Insider Activity

In related news, Director Sona Chawla acquired 2,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 25th. The stock was bought at an average price of $53.39 per share, for a total transaction of $106,780.00. Following the acquisition, the director directly owned 21,702 shares of the company’s stock, valued at $1,158,669.78. This represents a 10.15% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Keith Barr purchased 9,400 shares of the stock in a transaction that occurred on Monday, June 22nd. The stock was purchased at an average price of $53.01 per share, with a total value of $498,294.00. Following the acquisition, the chief executive officer directly owned 33,375 shares of the company’s stock, valued at $1,769,208.75. This trade represents a 39.21% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders purchased 13,900 shares of company stock valued at $735,574. 1.01% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On CarMax

Several institutional investors have recently bought and sold shares of KMX. California State Teachers Retirement System increased its stake in CarMax by 4,934.8% during the 2nd quarter. California State Teachers Retirement System now owns 8,253,061 shares of the company’s stock valued at $436,504,000 after purchasing an additional 8,089,141 shares in the last quarter. AQR Capital Management LLC lifted its stake in shares of CarMax by 151.8% during the fourth quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock worth $306,429,000 after buying an additional 4,780,903 shares during the period. SRS Investment Management LLC lifted its stake in shares of CarMax by 1,717.5% during the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock worth $217,845,000 after buying an additional 5,327,603 shares during the period. Jupiter Topco LLC purchased a new stake in shares of CarMax during the second quarter valued at $245,676,000. Finally, Janus Henderson Group PLC grew its holdings in shares of CarMax by 1.1% during the first quarter. Janus Henderson Group PLC now owns 4,580,807 shares of the company’s stock valued at $190,471,000 after buying an additional 49,987 shares during the last quarter.

CarMax Stock Down 1.6%

KMX opened at $62.79 on Friday. The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.82 and a current ratio of 2.70. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $65.28. The firm’s fifty day moving average is $56.62 and its 200 day moving average is $47.48. The stock has a market cap of $8.91 billion, a price-to-earnings ratio of 41.04, a price-to-earnings-growth ratio of 2.92 and a beta of 1.15.

CarMax (NYSE:KMX) last posted its quarterly earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.35. The business had revenue of $8.01 billion during the quarter, compared to the consensus estimate of $7.42 billion. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The firm’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period in the prior year, the company posted $1.38 EPS. On average, sell-side analysts forecast that CarMax will post 2.73 earnings per share for the current fiscal year.

About CarMax

CarMax (NYSE: KMX) is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company’s inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax’s retail locations or browse the company’s online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.