CarMax (NYSE:KMX) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded CarMax from “hold” to “buy,” though broader analyst sentiment remains cautious, with a consensus “reduce” rating and an average price target of $56.46.
• CarMax reported a strong quarter, posting $1.16 in EPS versus the $0.73 estimate and $7.88 billion in revenue, up 19.5% year over year.
• Several major institutional investors, including Jupiter Topco, Primecap Management and Canada Pension Plan Investment Board, established sizable new positions in CarMax.

CarMax (NYSE:KMX - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday, Wall Street Zen reports.

KMX has been the subject of several other research reports. Robert W. Baird raised their price target on shares of CarMax from $64.00 to $70.00 and gave the stock an "outperform" rating in a report on Wednesday, September 30th. Morgan Stanley upped their target price on CarMax from $47.00 to $53.00 and gave the company an "equal weight" rating in a research report on Wednesday, September 30th. BNP Paribas Exane reaffirmed a "strong sell" rating and set a $48.00 target price (up from $33.00) on shares of CarMax in a research note on Wednesday, September 30th. JPMorgan Chase & Co. lifted their target price on CarMax from $60.00 to $70.00 and gave the stock a "neutral" rating in a report on Friday, September 18th. Finally, UBS Group boosted their price target on CarMax from $57.00 to $62.00 and gave the company a "neutral" rating in a research note on Wednesday, September 30th. Two analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus target price of $56.46.

CarMax Price Performance

Shares of KMX opened at $52.65 on Friday. The business has a 50-day simple moving average of $58.96 and a two-hundred day simple moving average of $50.85. CarMax has a 12-month low of $30.26 and a 12-month high of $65.28. The company has a quick ratio of 0.57, a current ratio of 2.33 and a debt-to-equity ratio of 2.66. The stock has a market cap of $7.47 billion, a PE ratio of 25.68, a PEG ratio of 1.55 and a beta of 1.23.

CarMax (NYSE:KMX - Get Free Report) last posted its earnings results on Tuesday, September 29th. The company reported $1.16 EPS for the quarter, topping the consensus estimate of $0.73 by $0.43. CarMax had a net margin of 1.06% and a return on equity of 7.76%. The business had revenue of $7.88 billion for the quarter, compared to the consensus estimate of $7.09 billion. During the same period last year, the company earned $0.64 EPS. The firm's revenue was up 19.5% compared to the same quarter last year. Analysts anticipate that CarMax will post 3.01 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in KMX. Jupiter Topco LLC bought a new position in shares of CarMax in the second quarter worth approximately $245,676,000. Primecap Management Co. CA bought a new stake in CarMax during the second quarter valued at approximately $230,548,000. The Manufacturers Life Insurance Company purchased a new position in CarMax in the 2nd quarter worth approximately $128,001,000. Canada Pension Plan Investment Board purchased a new position in CarMax in the 2nd quarter worth approximately $115,465,000. Finally, Pacer Advisors Inc. bought a new position in shares of CarMax in the 1st quarter worth $48,634,000.

CarMax Company Profile

CarMax, Inc is a retailer of used vehicles operating in the United States. The company sells a broad selection of used cars, trucks and SUVs through its dealership network and online platform, offering customers the ability to research, purchase and arrange delivery for vehicles through an omnichannel shopping experience.

In addition to retail vehicle sales, CarMax provides vehicle financing through CarMax Auto Finance and offers customers access to extended protection products and related services.

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