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

Shares of CarMax, Inc. (NYSE:KMX) have been given an average recommendation of “Hold” by the fourteen brokerages that are presently covering the stock, MarketBeat reports. Three analysts have rated the stock with a sell rating, five have assigned a hold rating and six have issued a buy rating on the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $85.17.

KMX has been the topic of several research reports. Oppenheimer reaffirmed an “outperform” rating and issued a $105.00 price target on shares of CarMax in a report on Friday, October 4th. Wedbush reaffirmed an “outperform” rating and set a $95.00 target price on shares of CarMax in a research report on Wednesday, October 16th. Royal Bank of Canada increased their price target on CarMax from $92.00 to $99.00 and gave the company an “overweight” rating in a research report on Thursday, December 19th. Truist Financial boosted their price objective on CarMax from $72.00 to $88.00 and gave the stock a “hold” rating in a report on Friday, December 20th. Finally, BNP Paribas upgraded shares of CarMax to a “strong sell” rating in a report on Friday, September 27th.

CarMax Trading Down 4.2 %

Shares of KMX stock opened at $78.46 on Friday. The company has a quick ratio of 0.68, a current ratio of 2.25 and a debt-to-equity ratio of 2.93. The stock has a 50-day simple moving average of $81.65 and a 200 day simple moving average of $78.87. CarMax has a fifty-two week low of $65.83 and a fifty-two week high of $91.25. The stock has a market capitalization of $12.07 billion, a P/E ratio of 29.50, a P/E/G ratio of 1.74 and a beta of 1.71.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Thursday, December 19th. The company reported $0.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.19. CarMax had a net margin of 1.61% and a return on equity of 6.83%. The company had revenue of $6.22 billion for the quarter, compared to analysts’ expectations of $6.05 billion. During the same quarter in the previous year, the company posted $0.52 EPS. The business’s revenue was up 1.2% compared to the same quarter last year. On average, sell-side analysts expect that CarMax will post 3.01 earnings per share for the current fiscal year.

Insider Activity at CarMax

In other news, EVP Mohammad Shamim sold 12,845 shares of the firm’s stock in a transaction on Wednesday, January 8th. The shares were sold at an average price of $81.94, for a total transaction of $1,052,519.30. Following the transaction, the executive vice president now owns 11,738 shares in the company, valued at approximately $961,811.72. This trade represents a 52.25 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO William D. Nash sold 120,513 shares of the company’s stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $83.24, for a total transaction of $10,031,502.12. Following the completion of the sale, the chief executive officer now owns 181,683 shares of the company’s stock, valued at $15,123,292.92. This represents a 39.88 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 241,589 shares of company stock valued at $20,042,746. Insiders own 1.66% of the company’s stock.

Hedge Funds Weigh In On CarMax

Institutional investors have recently bought and sold shares of the stock. World Investment Advisors LLC acquired a new position in shares of CarMax during the 3rd quarter valued at about $6,942,000. Sumitomo Mitsui Trust Group Inc. boosted its position in CarMax by 3.2% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 351,361 shares of the company’s stock worth $27,188,000 after purchasing an additional 10,898 shares during the period. Eagle Rock Investment Company LLC acquired a new position in CarMax during the third quarter valued at approximately $747,000. Neo Ivy Capital Management bought a new position in shares of CarMax in the third quarter valued at approximately $3,934,000. Finally, iSAM Funds UK Ltd acquired a new stake in shares of CarMax in the third quarter worth $537,000.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.