CarMax (NYSE:KMX) Stock Rating Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded CarMax to “Hold” from “Buy,” aligning with MarketBeat’s consensus “Hold” rating and $57.85 average price target.
• Analyst views remain mixed: Bank of America upgraded the stock to “Buy,” while Morgan Stanley maintained “Equal Weight”; price targets range from $53 to $74.
• CarMax reported stronger-than-expected quarterly results, with EPS of $1.16 versus $0.73 expected and revenue of $7.88 billion, up 19.5% year over year.

CarMax (NYSE:KMX - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday, Wall Street Zen reports.

Several other equities analysts have also commented on the company. Morgan Stanley increased their price objective on CarMax from $47.00 to $53.00 and gave the company an "equal weight" rating in a research report on Wednesday, September 30th. Stephens boosted their target price on CarMax from $66.00 to $74.00 and gave the stock an "overweight" rating in a research report on Friday, September 25th. Bank of America upgraded CarMax from an "underperform" rating to a "buy" rating and boosted their target price for the stock from $50.00 to $65.00 in a research report on Thursday, October 15th. Robert W. Baird upped their target price on CarMax from $64.00 to $70.00 and gave the stock an "outperform" rating in a research note on Wednesday, September 30th. Finally, UBS Group set a $65.00 price target on shares of CarMax in a research report on Thursday, October 15th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $57.85.

CarMax Stock Down 1.0%

Shares of NYSE:KMX opened at $55.62 on Friday. CarMax has a 52-week low of $30.26 and a 52-week high of $65.28. The firm has a fifty day moving average of $57.09 and a 200 day moving average of $49.47. The firm has a market capitalization of $7.89 billion, a PE ratio of 27.13, a price-to-earnings-growth ratio of 1.55 and a beta of 1.23. The company has a debt-to-equity ratio of 2.66, a quick ratio of 0.57 and a current ratio of 2.33.

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

Institutional Trading of CarMax

Several institutional investors have recently added to or reduced their stakes in KMX. Covestor Ltd boosted its holdings in CarMax by 471.1% in the third quarter. Covestor Ltd now owns 514 shares of the company's stock worth $28,000 after purchasing an additional 424 shares during the last quarter. Global Retirement Partners LLC bought a new stake in CarMax in the 2nd quarter worth approximately $29,000. Provenance Wealth Advisors LLC purchased a new stake in CarMax during the 3rd quarter valued at $31,000. Basecamp Wealth Advisors LLC raised its stake in CarMax by 105.8% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company's stock valued at $26,000 after buying an additional 327 shares during the last quarter. Finally, Anchor Investment Management LLC purchased a new stake in CarMax during the 2nd quarter valued at $37,000.

About CarMax

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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