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

CarMax, Inc. (NYSE:KMX) has received an average rating of “Reduce” from the nineteen brokerages that are covering the firm, Marketbeat.com reports. Five research analysts have rated the stock with a sell rating, twelve have assigned a hold rating, one has issued a buy rating and one has issued a strong buy rating on the company. The average twelve-month price target among analysts that have issued ratings on the stock in the last year is $39.2143.

A number of research firms have weighed in on KMX. Wall Street Zen upgraded CarMax from a “sell” rating to a “hold” rating in a report on Sunday, February 22nd. Royal Bank Of Canada upped their price objective on CarMax from $34.00 to $37.00 and gave the stock a “sector perform” rating in a research note on Friday, December 19th. Benchmark reaffirmed a “hold” rating on shares of CarMax in a research report on Tuesday, December 16th. Evercore set a $42.00 target price on CarMax in a research note on Tuesday, February 10th. Finally, Wedbush reduced their target price on shares of CarMax from $40.00 to $36.00 and set a “neutral” rating for the company in a report on Friday, December 19th.

CarMax Trading Down 0.8%

NYSE:KMX opened at $42.14 on Friday. The firm has a 50-day simple moving average of $44.22 and a 200-day simple moving average of $44.87. CarMax has a one year low of $30.26 and a one year high of $82.79. The firm has a market cap of $5.98 billion, a P/E ratio of 13.91, a P/E/G ratio of 1.00 and a beta of 1.35. The company has a debt-to-equity ratio of 2.74, a quick ratio of 0.51 and a current ratio of 1.99.

CarMax (NYSE:KMX) last released its quarterly earnings data on Thursday, December 18th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.31 by $0.12. The firm had revenue of $5.79 billion for the quarter, compared to the consensus estimate of $5.66 billion. CarMax had a net margin of 1.77% and a return on equity of 7.72%. The company’s quarterly revenue was down 6.9% on a year-over-year basis. During the same period last year, the firm earned $0.81 earnings per share. Equities analysts anticipate that CarMax will post 3.23 EPS for the current fiscal year.

Institutional Investors Weigh In On CarMax

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Fox Run Management L.L.C. purchased a new stake in shares of CarMax during the second quarter worth about $1,887,000. True North Advisors LLC boosted its stake in CarMax by 66.6% in the 3rd quarter. True North Advisors LLC now owns 123,742 shares of the company’s stock worth $5,552,000 after purchasing an additional 49,450 shares in the last quarter. Intech Investment Management LLC boosted its stake in CarMax by 129.4% in the 3rd quarter. Intech Investment Management LLC now owns 86,444 shares of the company’s stock worth $3,879,000 after purchasing an additional 48,757 shares in the last quarter. Silver Heights Capital Management Inc grew its position in CarMax by 39.5% during the 3rd quarter. Silver Heights Capital Management Inc now owns 926,167 shares of the company’s stock worth $41,557,000 after purchasing an additional 262,478 shares during the last quarter. Finally, AXQ Capital LP purchased a new stake in CarMax during the 2nd quarter worth approximately $859,000.

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.