Royal Bank of Canada Forecasts Strong Price Appreciation for CarMax (NYSE:KMX) Stock

CarMax (NYSE:KMX) had its target price lifted by investment analysts at Royal Bank of Canada from $92.00 to $99.00 in a research note issued on Thursday, MarketBeat reports. The firm presently has an “overweight” rating on the stock. Royal Bank of Canada’s price objective suggests a potential upside of 17.48% from the company’s current price.

Other equities analysts have also recently issued reports about the company. Oppenheimer reiterated an “outperform” rating and set 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 note on Wednesday, October 16th. Evercore ISI boosted their price target on shares of CarMax from $83.00 to $85.00 and gave the company a “market perform” rating in a research note on Thursday. BNP Paribas raised shares of CarMax to a “strong sell” rating in a research report on Friday, September 27th. Finally, JPMorgan Chase & Co. lifted their target price on shares of CarMax from $65.00 to $70.00 and gave the company an “underweight” rating in a report on Thursday, December 5th. Three analysts have rated the stock with a sell rating, six have issued a hold rating and six have given a buy rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $85.17.

CarMax Stock Performance

NYSE:KMX opened at $84.27 on Thursday. The company’s 50-day moving average is $78.77 and its two-hundred day moving average is $77.55. CarMax has a 1-year low of $65.83 and a 1-year high of $91.25. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.25 and a quick ratio of 0.68. The firm has a market capitalization of $13.06 billion, a price-to-earnings ratio of 31.68, a PEG ratio of 1.76 and a beta of 1.71.

CarMax (NYSE:KMX) last released its quarterly earnings data on Thursday, December 19th. The company reported $0.81 EPS for the quarter, beating analysts’ consensus estimates of $0.62 by $0.19. The firm had revenue of $6.22 billion for the quarter, compared to analysts’ expectations of $6.05 billion. CarMax had a return on equity of 6.83% and a net margin of 1.61%. The firm’s quarterly revenue was up 1.2% on a year-over-year basis. During the same period in the prior year, the firm posted $0.52 earnings per share. Analysts forecast that CarMax will post 3.01 EPS for the current year.

Institutional Trading of CarMax

A number of large investors have recently modified their holdings of KMX. Blue Trust Inc. increased its stake in shares of CarMax by 134.1% during the second quarter. Blue Trust Inc. now owns 501 shares of the company’s stock worth $37,000 after buying an additional 287 shares during the period. Raymond James Financial Services Advisors Inc. grew its holdings in CarMax by 13.1% during the 2nd quarter. Raymond James Financial Services Advisors Inc. now owns 233,866 shares of the company’s stock worth $17,152,000 after acquiring an additional 27,122 shares in the last quarter. Fifth Third Bancorp increased its position in shares of CarMax by 2.0% in the 2nd quarter. Fifth Third Bancorp now owns 9,008 shares of the company’s stock valued at $661,000 after purchasing an additional 177 shares during the last quarter. Atria Wealth Solutions Inc. raised its holdings in shares of CarMax by 52.5% in the 2nd quarter. Atria Wealth Solutions Inc. now owns 10,734 shares of the company’s stock valued at $787,000 after purchasing an additional 3,695 shares in the last quarter. Finally, &PARTNERS lifted its position in shares of CarMax by 197.4% during the 2nd quarter. &PARTNERS now owns 7,525 shares of the company’s stock worth $552,000 after purchasing an additional 4,995 shares during the last quarter.

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.