CarMax, Inc. (NYSE:KMX) Given Average Rating of “Reduce” by Brokerages

CarMax, Inc. (NYSE:KMX) has been assigned a consensus rating of “Reduce” from the twenty brokerages that are presently covering the company, MarketBeat reports. Five investment analysts have rated the stock with a sell recommendation, thirteen have given a hold recommendation and two have given a buy recommendation to the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $47.7333.

Several equities research analysts have issued reports on KMX shares. Robert W. Baird lifted their target price on shares of CarMax from $48.00 to $55.00 and gave the stock an “outperform” rating in a research note on Thursday, June 18th. UBS Group raised their price target on shares of CarMax from $42.00 to $57.00 and gave the stock a “neutral” rating in a research note on Tuesday, June 23rd. Stephens upgraded shares of CarMax from an “equal weight” rating to an “overweight” rating and set a $66.00 price target on the stock in a research report on Thursday, June 18th. Mizuho upped their price objective on shares of CarMax from $38.00 to $43.00 and gave the company a “neutral” rating in a research note on Thursday, June 18th. Finally, Royal Bank Of Canada upped their price objective on shares of CarMax from $41.00 to $45.00 and gave the company a “sector perform” rating in a research note on Thursday, June 18th.

CarMax Stock Performance

NYSE KMX opened at $50.30 on Thursday. The company has a market cap of $7.14 billion, a PE ratio of 32.88, a price-to-earnings-growth ratio of 1.66 and a beta of 1.17. The stock’s 50 day simple moving average is $45.40 and its 200-day simple moving average is $43.74. CarMax has a 1-year low of $30.26 and a 1-year high of $68.71. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.96 by $0.35. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The firm had revenue of $8.01 billion for the quarter, compared to analyst estimates of $7.42 billion. During the same period in the previous year, the company posted $1.38 earnings per share. The business’s revenue was up 6.2% on a year-over-year basis. As a group, equities research analysts anticipate that CarMax will post 2.68 EPS for the current fiscal year.

Insider Transactions at CarMax

In related news, CEO Keith Barr acquired 9,400 shares of CarMax stock in a transaction that occurred on Monday, June 22nd. The shares were purchased at an average price of $53.01 per share, for a total transaction of $498,294.00. Following the completion of the transaction, the chief executive officer owned 33,375 shares in the company, valued at $1,769,208.75. This represents a 39.21% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Sona Chawla acquired 2,000 shares of CarMax stock in a transaction that occurred on Thursday, June 25th. The shares were bought at an average price of $53.39 per share, for a total transaction of $106,780.00. Following the transaction, the director 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 SEC filing for this purchase provides additional information. Insiders have purchased a total of 13,900 shares of company stock worth $735,574 in the last ninety days. Insiders own 1.01% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. CYBER HORNET ETFs LLC acquired a new position in shares of CarMax during the 2nd quarter valued at about $28,000. MUFG Securities EMEA plc acquired a new stake in CarMax during the second quarter worth about $30,000. Basecamp Wealth Advisors LLC increased its position in CarMax by 105.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company’s stock worth $26,000 after purchasing an additional 327 shares during the last quarter. Huntington National Bank raised its stake in CarMax by 62.4% during the fourth quarter. Huntington National Bank now owns 690 shares of the company’s stock worth $27,000 after purchasing an additional 265 shares during the period. Finally, Advisory Services Network LLC purchased a new position in CarMax during the third quarter worth about $32,000.

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.