CarMax, Inc. (NYSE:KMX) Given Consensus Recommendation of “Reduce” by Brokerages

CarMax, Inc. (NYSE:KMX) has earned a consensus rating of “Reduce” from the twenty ratings firms that are presently covering the company, MarketBeat.com reports. Five analysts have rated the stock with a sell rating, thirteen have issued a hold rating and two have assigned a buy rating to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $47.7333.

KMX has been the subject of a number of research reports. Truist Financial lifted their target price on CarMax from $47.00 to $50.00 and gave the stock a “hold” rating in a report on Thursday, June 18th. Bank of America raised their price target on shares of CarMax from $40.00 to $45.00 and gave the stock an “underperform” rating in a research report on Wednesday, June 17th. Argus upgraded shares of CarMax to a “hold” rating in a research note on Thursday, April 16th. Wall Street Zen raised shares of CarMax from a “sell” rating to a “hold” rating in a report on Saturday, June 13th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of CarMax in a report on Monday.

CarMax Price Performance

NYSE KMX opened at $50.30 on Thursday. The company has a market cap of $7.14 billion, a price-to-earnings ratio of 32.88, a PEG ratio of 1.66 and a beta of 1.17. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82. The stock’s fifty day moving average price is $45.40 and its 200 day moving average price is $43.74. CarMax has a 1 year low of $30.26 and a 1 year high of $68.71.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Wednesday, June 17th. The company reported $1.31 EPS for the quarter, topping analysts’ consensus estimates of $0.96 by $0.35. The company had revenue of $8.01 billion during the quarter, compared to analysts’ expectations of $7.42 billion. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The firm’s revenue was up 6.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.38 EPS. As a group, equities research analysts forecast that CarMax will post 2.68 earnings per share for the current year.

Insider Transactions at CarMax

In related news, Director Sona Chawla bought 2,000 shares of the company’s stock in a transaction that occurred on Thursday, June 25th. The shares were purchased at an average cost of $53.39 per share, with a total value of $106,780.00. Following the completion of the acquisition, the director directly owned 21,702 shares in the company, valued at approximately $1,158,669.78. The trade was a 10.15% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Keith Barr purchased 9,400 shares of CarMax stock in a transaction that occurred on Monday, June 22nd. The shares were bought at an average price of $53.01 per share, with a total value of $498,294.00. Following the completion of the transaction, the chief executive officer owned 33,375 shares of the company’s stock, valued at $1,769,208.75. This represents a 39.21% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased 13,900 shares of company stock worth $735,574 over the last quarter. 1.01% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. CYBER HORNET ETFs LLC acquired a new stake in shares of CarMax during the 2nd quarter valued at about $28,000. MUFG Securities EMEA plc acquired a new position in CarMax during the second quarter worth $30,000. Basecamp Wealth Advisors LLC lifted its holdings in CarMax by 105.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company’s stock valued at $26,000 after purchasing an additional 327 shares in the last quarter. Huntington National Bank grew its position in shares of CarMax by 62.4% in the fourth 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. Finally, Advisory Services Network LLC acquired a new stake in shares of CarMax in the third quarter valued at about $32,000.

About CarMax

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.