Barclays Upgrades CarMax (NYSE:KMX) to "Equal Weight"

Key Points

• Barclays upgraded CarMax from “underweight” to “equal weight” and set a $61 price target, implying about 9.27% upside from the prior close.
• Other analysts remain cautious overall: CarMax’s consensus rating is “Reduce” with an average price target of $49.33, even after several recent target increases and rating changes.
• The company recently posted better-than-expected quarterly results, with EPS of $1.31 versus $0.96 expected and revenue of $8.01 billion, while insiders also made notable stock purchases in late June.

CarMax (NYSE:KMX - Get Free Report) was upgraded by equities researchers at Barclays from an "underweight" rating to an "equal weight" rating in a research report issued to clients and investors on Tuesday, MarketBeat reports. The firm currently has a $61.00 price objective on the stock. Barclays's target price would suggest a potential upside of 9.27% from the stock's previous close.

Other research analysts have also recently issued reports about the stock. UBS Group increased their price target on shares of CarMax from $42.00 to $57.00 and gave the company a "neutral" rating in a research report on Tuesday, June 23rd. Wall Street Zen raised shares of CarMax from a "sell" rating to a "hold" rating in a research note on Saturday, June 13th. Stephens raised CarMax from an "equal weight" rating to an "overweight" rating and set a $66.00 price objective on the stock in a research note on Thursday, June 18th. Truist Financial boosted their price objective on CarMax from $47.00 to $50.00 and gave the company a "hold" rating in a research report on Thursday, June 18th. Finally, Benchmark reiterated a "hold" rating on shares of CarMax in a report on Thursday, June 18th. Two research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Reduce" and a consensus price target of $49.33.

CarMax Stock Performance

NYSE:KMX opened at $55.83 on Tuesday. The stock has a market cap of $7.92 billion, a P/E ratio of 36.49, a PEG ratio of 1.85 and a beta of 1.17. The company has a quick ratio of 0.82, a current ratio of 2.70 and a debt-to-equity ratio of 2.87. The business's 50-day moving average price is $48.07 and its two-hundred day moving average price is $44.69. CarMax has a twelve month low of $30.26 and a twelve month high of $63.74.

CarMax (NYSE:KMX - Get Free Report) last posted its quarterly earnings data on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.35. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The company had revenue of $8.01 billion for the quarter, compared to analysts' expectations of $7.42 billion. During the same period in the prior year, the business earned $1.38 earnings per share. CarMax's revenue for the quarter was up 6.2% compared to the same quarter last year. As a group, equities analysts predict that CarMax will post 2.7 EPS for the current fiscal year.

Insider Activity at CarMax

In other CarMax news, Director Peter J. Bensen bought 2,500 shares of CarMax stock in a transaction on Monday, June 22nd. The stock was acquired at an average cost of $52.20 per share, with a total value of $130,500.00. Following the completion of the acquisition, the director owned 24,796 shares in the company, valued at approximately $1,294,351.20. This represents a 11.21% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Keith Barr purchased 9,400 shares of the firm's stock in a transaction on Monday, June 22nd. The stock was acquired at an average price of $53.01 per share, for a total transaction of $498,294.00. Following the completion of the transaction, the chief executive officer directly owned 33,375 shares of the company's stock, valued at approximately $1,769,208.75. This trade represents a 39.21% increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders acquired 13,900 shares of company stock worth $735,574. 1.01% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Shrier Wealth Management LLC bought a new stake in CarMax during the 2nd quarter worth approximately $217,000. Basecamp Wealth Advisors LLC increased its stake in shares of CarMax by 105.8% in the first quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company's stock worth $26,000 after purchasing an additional 327 shares in the last quarter. Pacer Advisors Inc. purchased a new stake in shares of CarMax in the first quarter worth $48,634,000. NewEdge Advisors LLC raised its position in shares of CarMax by 63.0% during the 1st quarter. NewEdge Advisors LLC now owns 69,568 shares of the company's stock valued at $2,893,000 after purchasing an additional 26,888 shares during the period. Finally, Blue Edge Capital LLC bought a new position in CarMax in the 1st quarter worth $304,000.

CarMax Company Profile

CarMax NYSE: KMX is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company's inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax's retail locations or browse the company's online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.