Benchmark Has Lowered Expectations for CarMax (NYSE:KMX) Stock Price

Key Points

• Benchmark has lowered its target price for CarMax from $75.00 to $60.00, maintaining a "buy" rating, indicating a potential upside of 29.29% based on the current stock price.
• Other brokerages have also revised their price targets downwards, with Evercore ISI lowering its target from $80.00 to $52.00 and BNP Paribas Exane cutting theirs from $52.00 to $35.00.
• CarMax reported a quarterly earnings miss, with earnings per share at $0.64 against the expected $1.03, and its revenue declining by 6% compared to the same quarter the previous year.

CarMax (NYSE:KMX - Get Free Report) had its target price cut by equities research analysts at Benchmark from $75.00 to $60.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Benchmark's price objective would suggest a potential upside of 29.29% from the company's current price.

Several other brokerages also recently issued reports on KMX. Evercore ISI reissued an "in-line" rating and set a $52.00 target price (down previously from $80.00) on shares of CarMax in a research note on Friday, September 26th. Mizuho decreased their price target on CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a report on Thursday, July 3rd. BNP Paribas Exane cut their target price on CarMax from $52.00 to $35.00 and set an "underperform" rating on the stock in a research note on Friday, September 26th. Seaport Res Ptn lowered CarMax from a "strong-buy" rating to a "hold" rating in a research note on Sunday, September 28th. Finally, Truist Financial decreased their target price on CarMax from $74.00 to $47.00 and set a "hold" rating for the company in a research report on Friday, September 26th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $54.42.

CarMax Stock Down 0.9%

Shares of KMX stock opened at $46.41 on Tuesday. The company has a current ratio of 2.46, a quick ratio of 1.06 and a debt-to-equity ratio of 2.87. CarMax has a 12 month low of $42.75 and a 12 month high of $91.25. The stock has a market cap of $6.82 billion, a P/E ratio of 13.67, a P/E/G ratio of 0.87 and a beta of 1.27. The company has a 50 day simple moving average of $56.72 and a two-hundred day simple moving average of $63.67.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings results on Thursday, September 25th. The company reported $0.64 earnings per share for the quarter, missing the consensus estimate of $1.03 by ($0.39). The business had revenue of $6.59 billion for the quarter, compared to analysts' expectations of $7.07 billion. CarMax had a return on equity of 8.51% and a net margin of 1.98%.The company's revenue was down 6.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.85 EPS. On average, research analysts expect that CarMax will post 3.23 earnings per share for the current year.

Institutional Trading of CarMax

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Avior Wealth Management LLC lifted its holdings in CarMax by 6,129.3% in the second quarter. Avior Wealth Management LLC now owns 9,344 shares of the company's stock valued at $628,000 after acquiring an additional 9,194 shares during the period. Mirae Asset Global Investments Co. Ltd. lifted its stake in shares of CarMax by 13.0% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 20,678 shares of the company's stock valued at $1,571,000 after purchasing an additional 2,375 shares during the period. Teacher Retirement System of Texas acquired a new position in shares of CarMax in the 1st quarter valued at $1,753,000. Sequoia Financial Advisors LLC boosted its holdings in CarMax by 5.5% during the first quarter. Sequoia Financial Advisors LLC now owns 3,367 shares of the company's stock worth $262,000 after buying an additional 176 shares in the last quarter. Finally, Wedge Capital Management L L P NC grew its position in CarMax by 54.9% during the second quarter. Wedge Capital Management L L P NC now owns 102,632 shares of the company's stock valued at $6,898,000 after buying an additional 36,376 shares during the period.

CarMax Company Profile

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.

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