CarMax (NYSE:KMX) Research Coverage Started at Morgan Stanley

Morgan Stanley initiated coverage on shares of CarMax (NYSE:KMX) in a report issued on Tuesday, Marketbeat.com reports. The firm issued an overweight rating and a $80.00 target price on the stock.

Several other brokerages also recently weighed in on KMX. Evercore ISI decreased their price target on CarMax from $85.00 to $84.00 and set an “outperform” rating for the company in a report on Wednesday, May 28th. Robert W. Baird reduced their target price on shares of CarMax from $95.00 to $90.00 and set an “outperform” rating for the company in a research note on Friday, April 11th. Royal Bank Of Canada boosted their price target on shares of CarMax from $80.00 to $81.00 and gave the stock an “outperform” rating in a research note on Monday, June 23rd. Stephens raised shares of CarMax from an “equal weight” rating to an “overweight” rating and increased their price target for the stock from $86.00 to $90.00 in a report on Wednesday, March 26th. Finally, Truist Financial raised their price objective on shares of CarMax from $72.00 to $74.00 and gave the company a “hold” rating in a research report on Monday, June 23rd. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $84.45.

CarMax Price Performance

Shares of NYSE:KMX opened at $69.94 on Tuesday. CarMax has a one year low of $61.34 and a one year high of $91.25. The stock has a market capitalization of $10.50 billion, a price-to-earnings ratio of 19.32, a PEG ratio of 1.16 and a beta of 1.38. The company has a 50-day simple moving average of $66.18 and a 200-day simple moving average of $74.38. The company has a debt-to-equity ratio of 2.86, a quick ratio of 0.80 and a current ratio of 2.39.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Friday, June 20th. The company reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.18 by $0.20. CarMax had a return on equity of 9.11% and a net margin of 2.09%. The firm had revenue of $7.55 billion for the quarter, compared to analysts’ expectations of $7.58 billion. During the same quarter in the previous year, the firm posted $0.97 EPS. The firm’s revenue for the quarter was up 6.1% on a year-over-year basis. On average, analysts predict that CarMax will post 3.23 EPS for the current year.

Insider Activity at CarMax

In other news, Director Mitchell D. Steenrod acquired 1,300 shares of the company’s stock in a transaction that occurred on Thursday, April 24th. The stock was purchased at an average cost of $65.49 per share, with a total value of $85,137.00. Following the purchase, the director directly owned 33,577 shares of the company’s stock, valued at approximately $2,198,957.73. This trade represents a 4.03% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Jon G. Daniels sold 1,540 shares of the business’s stock in a transaction on Wednesday, July 2nd. The stock was sold at an average price of $70.64, for a total value of $108,785.60. Following the sale, the executive vice president owned 2,779 shares in the company, valued at approximately $196,308.56. The trade was a 35.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.70% of the stock is owned by insiders.

Institutional Investors Weigh In On CarMax

A number of large investors have recently added to or reduced their stakes in the business. Zions Bancorporation National Association UT purchased a new stake in shares of CarMax in the first quarter valued at about $27,000. Accent Capital Management LLC acquired a new position in shares of CarMax during the 1st quarter worth approximately $34,000. Strengthening Families & Communities LLC lifted its stake in CarMax by 93.1% in the 1st quarter. Strengthening Families & Communities LLC now owns 531 shares of the company’s stock valued at $39,000 after buying an additional 256 shares in the last quarter. Ameriflex Group Inc. acquired a new stake in CarMax during the 4th quarter valued at $53,000. Finally, Quarry LP grew its holdings in CarMax by 50.5% during the 1st quarter. Quarry LP now owns 694 shares of the company’s stock valued at $54,000 after buying an additional 233 shares during 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.