CarMax, Inc. (NYSE:KMX) Receives $87.50 Average Price Target from Brokerages

CarMax, Inc. (NYSE:KMX) has been assigned an average rating of “Hold” from the thirteen ratings firms that are currently covering the stock, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, four have given a hold recommendation and seven have issued a buy recommendation on the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $90.91.

A number of research analysts have weighed in on KMX shares. StockNews.com raised CarMax from a “sell” rating to a “hold” rating in a report on Friday, December 20th. Royal Bank of Canada increased their target price on CarMax from $92.00 to $99.00 and gave the company an “overweight” rating in a report on Thursday, December 19th. Stephens started coverage on CarMax in a report on Thursday, December 5th. They issued an “equal weight” rating and a $86.00 target price on the stock. JPMorgan Chase & Co. increased their target price on CarMax from $70.00 to $72.00 and gave the company an “underweight” rating in a report on Friday, December 20th. Finally, Mizuho increased their target price on CarMax from $72.00 to $80.00 and gave the company a “neutral” rating in a report on Friday, December 20th.

CarMax Trading Up 1.2 %

Shares of NYSE:KMX opened at $82.95 on Monday. The company has a market cap of $12.76 billion, a P/E ratio of 28.12, a PEG ratio of 1.67 and a beta of 1.72. The company has a debt-to-equity ratio of 2.92, a current ratio of 2.30 and a quick ratio of 0.55. CarMax has a 1 year low of $65.83 and a 1 year high of $91.25. The stock’s fifty day moving average price is $83.27 and its 200-day moving average price is $80.35.

CarMax (NYSE:KMX) last announced its quarterly earnings results on Thursday, December 19th. The company reported $0.81 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.62 by $0.19. The firm had revenue of $6.22 billion for the quarter, compared to the consensus estimate of $6.05 billion. CarMax had a return on equity of 7.49% and a net margin of 1.77%. The company’s quarterly revenue was up 1.2% on a year-over-year basis. During the same period in the prior year, the company posted $0.52 earnings per share. Sell-side analysts expect that CarMax will post 3.23 earnings per share for the current year.

Insiders Place Their Bets

In related news, SVP Jon G. Daniels sold 10,000 shares of the stock in a transaction dated Thursday, December 26th. The stock was sold at an average price of $85.30, for a total transaction of $853,000.00. Following the completion of the sale, the senior vice president now owns 995 shares in the company, valued at approximately $84,873.50. This trade represents a 90.95 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Enrique N. Mayor-Mora sold 5,000 shares of the firm’s stock in a transaction that occurred on Wednesday, January 15th. The shares were sold at an average price of $81.43, for a total value of $407,150.00. Following the completion of the sale, the chief financial officer now directly owns 20,260 shares of the company’s stock, valued at $1,649,771.80. The trade was a 19.79 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 264,467 shares of company stock worth $21,915,445 over the last quarter. 1.66% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On CarMax

Several hedge funds have recently made changes to their positions in KMX. Norges Bank bought a new position in shares of CarMax in the 4th quarter worth $423,187,000. Kovitz Investment Group Partners LLC raised its position in shares of CarMax by 348.0% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 6,595,067 shares of the company’s stock worth $539,213,000 after acquiring an additional 5,122,850 shares in the last quarter. FMR LLC raised its position in shares of CarMax by 2,883.1% in the 3rd quarter. FMR LLC now owns 1,772,808 shares of the company’s stock worth $137,180,000 after acquiring an additional 1,713,379 shares in the last quarter. Holocene Advisors LP raised its position in shares of CarMax by 740.2% in the 3rd quarter. Holocene Advisors LP now owns 946,931 shares of the company’s stock worth $73,274,000 after acquiring an additional 834,232 shares in the last quarter. Finally, AQR Capital Management LLC raised its position in shares of CarMax by 82.9% in the 4th quarter. AQR Capital Management LLC now owns 1,400,012 shares of the company’s stock worth $114,465,000 after acquiring an additional 634,390 shares in the last quarter.

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.