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

CarMax, Inc. (NYSE:KMX) has received a consensus recommendation of “Reduce” from the nineteen brokerages that are covering the company, Marketbeat reports. Five research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and one has given a buy rating to the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $41.2143.

Several analysts recently weighed in on the company. Bank of America assumed coverage on CarMax in a report on Wednesday, April 15th. They set an “underperform” rating and a $40.00 price target on the stock. JPMorgan Chase & Co. increased their price target on CarMax from $28.00 to $35.00 and gave the company an “underweight” rating in a report on Wednesday, April 15th. Robert W. Baird increased their price target on CarMax from $44.00 to $48.00 and gave the company an “outperform” rating in a report on Wednesday, February 18th. Stephens increased their price target on CarMax from $39.00 to $43.00 and gave the company an “equal weight” rating in a report on Thursday, April 2nd. Finally, Argus upgraded CarMax to a “hold” rating in a report on Thursday, April 16th.

Institutional Trading of CarMax

A number of hedge funds and other institutional investors have recently bought and sold shares of KMX. Huntington National Bank increased its stake in CarMax by 62.4% in 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. CYBER HORNET ETFs LLC purchased a new stake in CarMax in the second quarter worth $28,000. MUFG Securities EMEA plc purchased a new stake in CarMax in the second quarter worth $30,000. Center for Financial Planning Inc. purchased a new stake in CarMax in the third quarter worth $31,000. Finally, Advisory Services Network LLC purchased a new stake in CarMax in the third quarter worth $32,000.

CarMax Stock Performance

NYSE:KMX opened at $36.29 on Wednesday. The stock’s fifty day moving average is $40.80 and its 200 day moving average is $41.07. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $71.99. The firm has a market capitalization of $5.15 billion, a PE ratio of 22.68, a PEG ratio of 1.40 and a beta of 1.19. The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.49 and a current ratio of 2.20.

CarMax (NYSE:KMX) last released its quarterly earnings results on Tuesday, April 14th. The company reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.12. CarMax had a return on equity of 7.00% and a net margin of 0.96%.The company had revenue of $5.95 billion for the quarter, compared to analyst estimates of $5.65 billion. During the same quarter in the prior year, the firm posted $0.58 EPS. CarMax’s quarterly revenue was down 1.0% compared to the same quarter last year. On average, sell-side analysts anticipate that CarMax will post 2.3 earnings per share for the current year.

CarMax Company Profile

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.