CarMax (NYSE:KMX) Stock Lifted to “Buy” by Wall Street Zen

Wall Street Zen upgraded shares of CarMax (NYSE:KMX) from a hold rating to a buy rating in a research note issued to investors on Saturday morning,Wall Street Zen reports.

Several other equities research analysts also recently issued reports on KMX. Bank of America increased their price target on CarMax from $45.00 to $50.00 and gave the stock an “underperform” rating in a report on Wednesday, September 30th. Morgan Stanley lifted their price objective on CarMax from $47.00 to $53.00 and gave the company an “equal weight” rating in a report on Wednesday, September 30th. Royal Bank Of Canada increased their target price on CarMax from $45.00 to $56.00 and gave the stock a “sector perform” rating in a research note on Wednesday, September 30th. Zacks Research downgraded shares of CarMax from a “strong-buy” rating to a “hold” rating in a report on Wednesday, September 16th. Finally, Benchmark reaffirmed a “hold” rating on shares of CarMax in a research note on Thursday, June 18th. Two investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Reduce” and a consensus price target of $56.46.

CarMax Price Performance

Shares of KMX stock opened at $52.65 on Friday. CarMax has a 12-month low of $30.26 and a 12-month high of $65.28. The firm has a market capitalization of $7.47 billion, a price-to-earnings ratio of 25.68, a price-to-earnings-growth ratio of 1.52 and a beta of 1.23. The company has a quick ratio of 0.57, a current ratio of 2.33 and a debt-to-equity ratio of 2.66. The firm has a fifty day moving average of $58.96 and a 200-day moving average of $50.85.

CarMax (NYSE:KMX) last released its quarterly earnings data on Tuesday, September 29th. The company reported $1.16 EPS for the quarter, beating analysts’ consensus estimates of $0.73 by $0.43. The business had revenue of $7.88 billion during the quarter, compared to analysts’ expectations of $7.09 billion. CarMax had a net margin of 1.06% and a return on equity of 7.76%. The firm’s quarterly revenue was up 19.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.64 EPS. On average, equities research analysts forecast that CarMax will post 3.01 earnings per share for the current year.

Hedge Funds Weigh In On CarMax

Several hedge funds have recently modified their holdings of KMX. Jupiter Topco LLC bought a new stake in CarMax during the second quarter worth about $245,676,000. Primecap Management Co. CA bought a new position in CarMax in the second quarter valued at approximately $230,548,000. The Manufacturers Life Insurance Company acquired a new position in shares of CarMax during the 2nd quarter worth approximately $128,001,000. Canada Pension Plan Investment Board acquired a new position in shares of CarMax during the 2nd quarter worth approximately $115,465,000. Finally, Pacer Advisors Inc. bought a new stake in shares of CarMax during the 1st quarter worth approximately $48,634,000.

About CarMax

CarMax, Inc is a retailer of used vehicles operating in the United States. The company sells a broad selection of used cars, trucks and SUVs through its dealership network and online platform, offering customers the ability to research, purchase and arrange delivery for vehicles through an omnichannel shopping experience.

In addition to retail vehicle sales, CarMax provides vehicle financing through CarMax Auto Finance and offers customers access to extended protection products and related services.