CarMax Inc (NYSE:KMX) Rating Increased to Buy at Zacks Investment Research
CarMax Inc (NYSE:KMX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The firm currently has a $72.00 target price on the stock. Zacks Investment Research‘s price target would suggest a potential upside of 13.08% from the stock’s current price.
According to Zacks, “CarMax has outperformed the Zacks-categorized Retail/Wholesale-Auto Parts industry in the last three months. Lately, both the quarterly and the yearly earnings estimates are moving up. CarMax’s focus on the used-car market helps it to outperform the industry. The company is among the strongest operators in its peer group. Also, its aggressive store-expansion is expected to benefit the company. Moreover, share repurchases will boost shareholder returns. However, the average selling prices in used vehicle as well as wholesale vehicle segment has been declining. The increase in the supply of used vehicles is expected to further lower prices.”
Other equities analysts also recently issued research reports about the stock. Susquehanna Bancshares Inc set a $70.00 target price on shares of CarMax and gave the stock a “buy” rating in a report on Friday, April 7th. Oppenheimer Holdings, Inc. reissued a “buy” rating on shares of CarMax in a report on Wednesday, April 5th. CIBC reissued a “buy” rating on shares of CarMax in a report on Thursday, April 6th. Deutsche Bank AG lowered their target price on shares of CarMax from $73.00 to $72.00 and set a “buy” rating on the stock in a report on Thursday, April 6th. Finally, Credit Suisse Group set a $75.00 target price on shares of CarMax and gave the stock a “buy” rating in a report on Monday, April 10th. One analyst has rated the stock with a sell rating, four have given a hold rating, nine have issued a buy rating and one has given a strong buy rating to the stock. The company has an average rating of “Buy” and a consensus price target of $69.00.
Shares of CarMax (NYSE KMX) traded down 0.83% during mid-day trading on Tuesday, hitting $63.67. 1,617,492 shares of the company were exchanged. The company has a market capitalization of $11.67 billion, a P/E ratio of 18.29 and a beta of 1.34. CarMax has a 52 week low of $47.50 and a 52 week high of $69.11. The company has a 50 day moving average of $62.19 and a 200 day moving average of $62.76.
CarMax (NYSE:KMX) last issued its quarterly earnings results on Wednesday, June 21st. The company reported $1.13 earnings per share for the quarter, beating the consensus estimate of $0.98 by $0.15. CarMax had a net margin of 4.07% and a return on equity of 21.72%. The business had revenue of $4.54 billion for the quarter, compared to the consensus estimate of $4.46 billion. During the same quarter in the previous year, the firm earned $0.90 earnings per share. The company’s revenue for the quarter was up 10.1% on a year-over-year basis. Equities analysts anticipate that CarMax will post $3.70 earnings per share for the current year.
In other CarMax news, Director Edgar H. Grubb sold 2,000 shares of the business’s stock in a transaction on Friday, April 21st. The shares were sold at an average price of $58.24, for a total transaction of $116,480.00. Following the transaction, the director now owns 42,005 shares in the company, valued at $2,446,371.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Thomas J. Folliard sold 50,000 shares of the business’s stock in a transaction on Friday, June 23rd. The shares were sold at an average price of $61.41, for a total transaction of $3,070,500.00. Following the transaction, the director now owns 509,166 shares in the company, valued at approximately $31,267,884.06. The disclosure for this sale can be found here. Insiders sold 97,497 shares of company stock worth $6,103,933 in the last 90 days. 1.90% of the stock is currently owned by company insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. First Republic Investment Management Inc. purchased a new position in CarMax during the fourth quarter worth $205,000. Thrivent Financial for Lutherans boosted its position in CarMax by 5.9% in the fourth quarter. Thrivent Financial for Lutherans now owns 6,630 shares of the company’s stock worth $427,000 after buying an additional 370 shares during the period. Norges Bank purchased a new position in CarMax during the fourth quarter worth $82,869,000. Elkhorn Investments LLC purchased a new position in CarMax during the fourth quarter worth $813,000. Finally, Dodge & Cox purchased a new position in CarMax during the fourth quarter worth $3,959,000.
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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