Zacks Investment Research upgraded shares of CarMax Inc. (NYSE:KMX) from a hold rating to a buy rating in a research note released on Thursday morning. The brokerage currently has $59.00 price target on the stock.
According to Zacks, “CarMax posted a year over year increase in adjusted earnings per share in second-quarter fiscal 2017. Earnings per share were in line with the Zacks Consensus Estimate. Revenues increased year over year but missed the Zacks Consensus Estimate. The company’s focus on the used-vehicle market and aggressive store expansion should help it outperform peers. Additionally, CarMax tries to enhance shareholder value through share repurchases. However, weaknesses in other sales and revenues as well as the CAF business remain concerns. CarMax has also been incurring significant cash outflows from operations.”
A number of other brokerages also recently commented on KMX. Vetr downgraded CarMax from a buy rating to a hold rating and set a $57.52 price objective for the company. in a research report on Monday, September 12th. Wedbush reiterated a hold rating and issued a $44.00 price objective on shares of CarMax in a research report on Thursday, June 16th. Goldman Sachs Group Inc. set a $63.00 price objective on CarMax and gave the stock a buy rating in a research report on Monday, September 19th. Robert W. Baird reiterated a neutral rating and issued a $58.00 price objective (down previously from $60.00) on shares of CarMax in a research report on Wednesday, June 22nd. Finally, Susquehanna started coverage on CarMax in a research report on Thursday, August 25th. They issued a positive rating and a $70.00 price objective for the company. One analyst has rated the stock with a sell rating, nine have given a hold rating and seven have assigned a buy rating to the stock. The company currently has an average rating of Hold and an average price target of $62.01.
CarMax (NYSE:KMX) opened at 51.14 on Thursday. The company has a market cap of $9.73 billion, a PE ratio of 16.63 and a beta of 1.42. CarMax has a 1-year low of $41.25 and a 1-year high of $60.81. The stock has a 50 day moving average price of $55.93 and a 200 day moving average price of $53.82.
CarMax (NYSE:KMX) last released its earnings results on Wednesday, September 21st. The company reported $0.88 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $0.88. The firm had revenue of $4 billion for the quarter, compared to analyst estimates of $4.11 billion. CarMax had a return on equity of 20.92% and a net margin of 3.95%. The company’s revenue was up 2.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.79 EPS. Equities analysts forecast that CarMax will post $3.28 earnings per share for the current year.
In other CarMax news, CFO Thomas W. Reedy, Jr. sold 57,795 shares of CarMax stock in a transaction on Thursday, July 14th. The stock was sold at an average price of $55.45, for a total value of $3,204,732.75. Following the completion of the transaction, the chief financial officer now owns 72,135 shares in the company, valued at approximately $3,999,885.75. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Thomas J. Folliard sold 271,435 shares of CarMax stock in a transaction on Tuesday, July 19th. The shares were sold at an average price of $55.39, for a total value of $15,034,784.65. Following the completion of the transaction, the chief executive officer now owns 758,517 shares of the company’s stock, valued at approximately $42,014,256.63. The disclosure for this sale can be found here. 1.70% of the stock is owned by company insiders.
Institutional investors have recently modified their holdings of the stock. Sun Life Financial INC acquired a new position in shares of CarMax during the first quarter valued at about $94,024,000. Canada Pension Plan Investment Board increased its position in shares of CarMax by 52.9% in the first quarter. Canada Pension Plan Investment Board now owns 2,600 shares of the company’s stock valued at $133,000 after buying an additional 900 shares during the last quarter. IFP Advisors Inc increased its position in shares of CarMax by 9.8% in the first quarter. IFP Advisors Inc now owns 2,820 shares of the company’s stock valued at $144,000 after buying an additional 251 shares during the last quarter. Mizuho Asset Management Co. Ltd. increased its position in shares of CarMax by 91.2% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 3,086 shares of the company’s stock valued at $151,000 after buying an additional 1,472 shares during the last quarter. Finally, Pacer Advisors Inc. increased its position in shares of CarMax by 5.4% in the second quarter. Pacer Advisors Inc. now owns 3,453 shares of the company’s stock valued at $169,000 after buying an additional 176 shares during the last quarter.
CarMax Company Profile
CarMax, Inc (CarMax) is a holding company. The Company is a retailer of used vehicles. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The Company’s CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF.
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