CarMax, Inc. (NYSE:KMX) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• CarMax, Inc. has received a consensus rating of "Moderate Buy" from analysts, with 9 buy ratings, 3 holds, 1 sell, and 1 strong buy among 14 brokerages.
• The average 12-month price target for CarMax shares is currently $81.50, reflecting optimism in the company's growth potential.
• Recently, EVP Jon G. Daniels sold 1,540 shares of CarMax stock at an average price of $70.64, reducing his ownership by 35.66%.

Shares of CarMax, Inc. (NYSE:KMX - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the fourteen brokerages that are currently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $81.50.

A number of analysts recently commented on the company. Wedbush reiterated an "outperform" rating and issued a $84.00 price objective on shares of CarMax in a research report on Tuesday, August 19th. Royal Bank Of Canada lifted their price target on shares of CarMax from $80.00 to $81.00 and gave the stock an "outperform" rating in a research report on Monday, June 23rd. Morgan Stanley assumed coverage on shares of CarMax in a report on Tuesday, July 1st. They issued an "overweight" rating and a $80.00 price objective on the stock. Benchmark started coverage on shares of CarMax in a research note on Thursday, July 17th. They issued a "buy" rating and a $75.00 price objective on the stock. Finally, Mizuho lowered their target price on shares of CarMax from $80.00 to $78.00 and set a "neutral" rating for the company in a report on Thursday, July 3rd.

Insider Activity at CarMax

In related news, EVP Jon G. Daniels sold 1,540 shares of CarMax stock in a transaction on Wednesday, July 2nd. The stock was sold at an average price of $70.64, for a total transaction of $108,785.60. Following the completion of the sale, the executive vice president directly owned 2,779 shares of the company's stock, valued at $196,308.56. The trade was a 35.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On CarMax

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC grew its position in shares of CarMax by 195.3% during the 2nd quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company's stock worth $298,107,000 after buying an additional 2,947,996 shares during the period. Baird Financial Group Inc. boosted its stake in CarMax by 6.6% during the 2nd quarter. Baird Financial Group Inc. now owns 3,298,113 shares of the company's stock worth $221,666,000 after acquiring an additional 204,481 shares during the last quarter. Norges Bank bought a new position in CarMax during the 2nd quarter worth approximately $208,144,000. Invesco Ltd. grew its holdings in CarMax by 4.7% during the second quarter. Invesco Ltd. now owns 2,998,928 shares of the company's stock valued at $201,558,000 after purchasing an additional 135,334 shares during the period. Finally, Turtle Creek Asset Management Inc. increased its stake in CarMax by 2.2% in the fourth quarter. Turtle Creek Asset Management Inc. now owns 2,590,071 shares of the company's stock valued at $211,764,000 after purchasing an additional 56,906 shares in the last quarter.

CarMax Trading Up 3.5%

Shares of NYSE KMX opened at $61.28 on Friday. CarMax has a 1-year low of $54.53 and a 1-year high of $91.25. The company has a market cap of $9.20 billion, a PE ratio of 16.93, a P/E/G ratio of 0.96 and a beta of 1.35. The company has a current ratio of 2.39, a quick ratio of 0.80 and a debt-to-equity ratio of 2.86. The company has a 50-day moving average of $60.58 and a two-hundred day moving average of $66.54.

CarMax (NYSE:KMX - Get Free Report) last released its quarterly earnings results on Friday, June 20th. The company reported $1.38 EPS for the quarter, beating the consensus estimate of $1.18 by $0.20. The business had revenue of $7.55 billion for the quarter, compared to analysts' expectations of $7.58 billion. CarMax had a net margin of 2.09% and a return on equity of 9.11%. CarMax's revenue was up 6.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.97 earnings per share. As a group, equities analysts expect that CarMax will post 3.23 earnings per share for the current fiscal year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.