CarMax (NYSE:KMX) Stock Gets Price Target Trim from JPMorgan Chase & Co.

Key Points

• JPMorgan cut its CarMax price target from $70 to $65 while maintaining a neutral rating; the revised target implies 17.94% upside from the prior close.
• Analyst views are mostly cautious: CarMax has a consensus “Hold” rating and an average price target of $58, despite some recent upgrades and higher targets from other firms.
• CarMax’s latest quarter beat expectations, with earnings of $1.16 per share versus $0.73 forecast and revenue of $7.88 billion versus $7.09 billion estimated; revenue rose 19.5% year over year.

CarMax (NYSE:KMX - Get Free Report) had its price objective dropped by stock analysts at JPMorgan Chase & Co. from $70.00 to $65.00 in a research note issued on Wednesday, Benzinga reports. The firm presently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s price target would suggest a potential upside of 17.94% from the stock's previous close.

Several other equities research analysts have also issued reports on the stock. Royal Bank Of Canada lifted their price target on shares of CarMax from $45.00 to $56.00 and gave the company a "sector perform" rating in a report on Wednesday, September 30th. Zacks Research upgraded shares of CarMax from a "hold" rating to a "strong-buy" rating in a report on Thursday, October 15th. Bank of America raised CarMax from an "underperform" rating to a "buy" rating and boosted their target price for the company from $50.00 to $65.00 in a research report on Thursday, October 15th. Stephens lifted their target price on CarMax from $66.00 to $74.00 and gave the company an "overweight" rating in a research report on Friday, September 25th. Finally, Barclays upped their price objective on CarMax from $61.00 to $67.00 and gave the company an "equal weight" rating in a research note on Wednesday, September 30th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, CarMax currently has a consensus rating of "Hold" and an average target price of $58.00.

CarMax Price Performance

KMX stock traded up $1.73 during midday trading on Wednesday, reaching $55.11. The company had a trading volume of 2,452,811 shares, compared to its average volume of 3,135,198. CarMax has a 1-year low of $30.26 and a 1-year high of $65.28. The stock has a 50 day moving average price of $56.79 and a 200-day moving average price of $49.55. The company has a debt-to-equity ratio of 2.66, a current ratio of 2.33 and a quick ratio of 0.57. The company has a market capitalization of $7.82 billion, a price-to-earnings ratio of 26.91, a price-to-earnings-growth ratio of 1.56 and a beta of 1.22.

CarMax (NYSE:KMX - Get Free Report) last released its earnings results on Tuesday, September 29th. The company reported $1.16 EPS for the quarter, beating the consensus estimate of $0.73 by $0.43. The firm had revenue of $7.88 billion for the quarter, compared to analyst estimates of $7.09 billion. CarMax had a net margin of 1.06% and a return on equity of 7.76%. The business's quarterly revenue was up 19.5% compared to the same quarter last year. During the same period last year, the firm earned $0.64 EPS. Equities research analysts expect that CarMax will post 3.15 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. AlphaCore Capital LLC boosted its stake in CarMax by 80.4% during the 3rd quarter. AlphaCore Capital LLC now owns 8,464 shares of the company's stock valued at $466,000 after purchasing an additional 3,771 shares during the last quarter. Fulcrum Asset Management LLP increased its stake in shares of CarMax by 92.4% in the 3rd quarter. Fulcrum Asset Management LLP now owns 8,407 shares of the company's stock worth $498,000 after purchasing an additional 4,037 shares in the last quarter. Brighton Jones LLC boosted its position in shares of CarMax by 16.9% in the third quarter. Brighton Jones LLC now owns 34,761 shares of the company's stock worth $1,916,000 after purchasing an additional 5,026 shares during the period. Candriam S.C.A. bought a new stake in CarMax during the 3rd quarter valued at approximately $455,000. Finally, Allegiance Financial Group Advisory Services LLC boosted its holdings in shares of CarMax by 23.9% during the 3rd quarter. Allegiance Financial Group Advisory Services LLC now owns 6,390 shares of the company's stock valued at $352,000 after purchasing an additional 1,233 shares during the last quarter.

CarMax Company Profile

CarMax, Inc is a specialty retailer of used vehicles and operates one of the largest used-car sales networks in the United States. The company sells a broad selection of pre-owned cars, trucks and SUVs through its retail stores and online platform, offering customers tools for vehicle search, appraisal, financing and purchase.

CarMax also operates a vehicle appraisal and acquisition business, buying vehicles from consumers and other sources for resale through its retail or wholesale channels.

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