Morgan Stanley Raises CarMax (NYSE:KMX) Price Target to $47.00

CarMax (NYSE:KMX) had its target price raised by Morgan Stanley from $44.00 to $47.00 in a research report issued on Wednesday, Benzinga reports. The firm presently has an “equal weight” rating on the stock. Morgan Stanley’s price target points to a potential downside of 17.21% from the company’s current price.

Other analysts have also issued reports about the company. Stephens raised CarMax from an “equal weight” rating to an “overweight” rating and set a $66.00 price target on the stock in a research note on Thursday, June 18th. Benchmark reaffirmed a “hold” rating on shares of CarMax in a research note on Thursday, June 18th. UBS Group set a $60.00 price objective on shares of CarMax in a report on Wednesday, July 29th. Truist Financial lifted their target price on shares of CarMax from $47.00 to $50.00 and gave the stock a “hold” rating in a research report on Thursday, June 18th. Finally, JPMorgan Chase & Co. upped their price target on shares of CarMax from $60.00 to $70.00 and gave the company a “neutral” rating in a research report on Friday, September 18th. Two analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus price target of $51.87.

CarMax Trading Down 1.9%

Shares of KMX stock opened at $56.77 on Wednesday. The firm has a market capitalization of $8.06 billion, a P/E ratio of 37.10, a P/E/G ratio of 2.67 and a beta of 1.17. CarMax has a twelve month low of $30.26 and a twelve month high of $65.28. The company has a quick ratio of 0.82, a current ratio of 2.70 and a debt-to-equity ratio of 2.87. The stock’s fifty day simple moving average is $59.58 and its 200 day simple moving average is $49.66.

Insider Activity at CarMax

In other news, Director Sona Chawla acquired 2,000 shares of the firm’s stock in a transaction dated Thursday, June 25th. The stock was bought at an average cost of $53.39 per share, for a total transaction of $106,780.00. Following the completion of the transaction, the director directly owned 21,702 shares in the company, valued at $1,158,669.78. This represents a 10.15% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 1.01% of the company’s stock.

Institutional Trading of CarMax

Institutional investors have recently bought and sold shares of the company. Global Retirement Partners LLC bought a new position in shares of CarMax in the 2nd quarter worth about $29,000. Basecamp Wealth Advisors LLC lifted its holdings in shares of CarMax by 105.8% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company’s stock worth $26,000 after purchasing an additional 327 shares in the last quarter. Huntington National Bank grew its position in CarMax by 62.4% in the 4th quarter. Huntington National Bank now owns 690 shares of the company’s stock valued at $27,000 after purchasing an additional 265 shares during the period. Anchor Investment Management LLC bought a new stake in CarMax during the 2nd quarter valued at $37,000. Finally, Wellington Grp LLC raised its holdings in CarMax by 6,500.0% during the first quarter. Wellington Grp LLC now owns 726 shares of the company’s stock worth $30,000 after buying an additional 715 shares during the last quarter.

Trending Headlines about CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: CarMax is eliminating 145 corporate positions, approximately 4% of its corporate workforce, as part of a plan to operate more efficiently and “run leaner.” Investors may view the cuts as a way to reduce expenses and support the company’s turnaround. CarMax Cuts 145 Corporate Jobs in Third Layoff Round in 11 Months
• Neutral Sentiment: Wall Street expects CarMax’s upcoming quarterly results to show year-over-year growth, with projected earnings of about $0.70 per share and revenue of approximately $6.94 billion. However, recent analyst estimates and price targets have been mixed, and the stock has largely received neutral ratings. Top Wall Street Forecasters Revamp CarMax Expectations Ahead of Q2 Earnings
• Negative Sentiment: CarMax’s third round of corporate layoffs in roughly 11 months underscores ongoing weakness in the auto market and concern about operating conditions. While the cuts may lower costs, repeated workforce reductions could signal that management expects a prolonged recovery. CarMax Cuts Jobs for Third Time in 12 Months Amid Soft Auto Market
• Negative Sentiment: Zacks said CarMax does not currently have the combination of factors that typically supports an earnings beat, increasing the risk of a disappointing report or cautious outlook. CarMax Earnings Expected to Grow
• Negative Sentiment: Bernstein Liebhard announced an investigation into potential breaches of fiduciary duty by certain CarMax directors and officers. The inquiry does not establish wrongdoing, but it adds legal and governance uncertainty that may weigh on investor sentiment. CarMax Shareholder Investigation Alert

About CarMax

CarMax, Inc is a specialty retailer of used vehicles and one of the largest automotive retailers in the United States. The company sells a broad selection of used cars, trucks and sport utility vehicles through its retail locations and online platform. CarMax also purchases vehicles from consumers and other sources, providing customers with a streamlined alternative to traditional private-party sales.

In addition to retail sales, CarMax operates wholesale vehicle auctions for vehicles that do not meet its retail standards or business requirements.