CarMax, Inc. (NYSE:KMX) Receives Average Rating of "Reduce" from Brokerages

Key Points

• Consensus "Reduce": Nineteen analysts covering CarMax give an average recommendation of Reduce (5 sell, 13 hold, 1 buy) with a 12‑month average target of $41.21.
• Analyst views are mixed: Robert W. Baird raised its target to $48 and kept an "outperform" rating, while Barclays cut its target to $26 with an "underweight" and Wall Street Zen downgraded to "sell."
• Recent results and stock metrics: CarMax beat Q earnings ($0.34 vs. $0.22) on $5.95B revenue (down 1% Y/Y); the stock opened at $38.31 with a 1‑year range of $30.26–$71.99 and a market cap around $5.4B.

CarMax, Inc. (NYSE:KMX - Get Free Report) has received an average recommendation of "Reduce" from the nineteen research firms that are presently covering the firm, Marketbeat reports. Five equities research analysts have rated the stock with a sell recommendation, thirteen have assigned a hold recommendation and one has assigned a buy recommendation to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $41.2143.

A number of research firms have commented on KMX. Robert W. Baird increased their price target on CarMax from $44.00 to $48.00 and gave the company an "outperform" rating in a research note on Wednesday, February 18th. JPMorgan Chase & Co. increased their price target on CarMax from $28.00 to $35.00 and gave the company an "underweight" rating in a research note on Wednesday, April 15th. Stephens increased their price target on CarMax from $39.00 to $43.00 and gave the company an "equal weight" rating in a research note on Thursday, April 2nd. Wall Street Zen cut CarMax from a "hold" rating to a "sell" rating in a research note on Saturday, April 18th. Finally, Barclays decreased their price target on CarMax from $28.00 to $26.00 and set an "underweight" rating for the company in a research note on Thursday, April 16th.

Institutional Investors Weigh In On CarMax

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Root Financial Partners LLC raised its stake in CarMax by 3,185.7% in the first quarter. Root Financial Partners LLC now owns 1,840 shares of the company's stock valued at $77,000 after buying an additional 1,784 shares during the last quarter. SJS Investment Consulting Inc. raised its stake in CarMax by 42.6% in the first quarter. SJS Investment Consulting Inc. now owns 1,035 shares of the company's stock valued at $43,000 after buying an additional 309 shares during the last quarter. Pictet Asset Management Holding SA raised its stake in CarMax by 5.6% in the first quarter. Pictet Asset Management Holding SA now owns 23,975 shares of the company's stock valued at $997,000 after buying an additional 1,273 shares during the last quarter. HF Advisory Group LLC raised its stake in CarMax by 0.7% in the first quarter. HF Advisory Group LLC now owns 46,418 shares of the company's stock valued at $1,930,000 after buying an additional 326 shares during the last quarter. Finally, OLD National Bancorp IN raised its stake in shares of CarMax by 22.3% in the first quarter. OLD National Bancorp IN now owns 193,940 shares of the company's stock worth $8,064,000 after purchasing an additional 35,340 shares during the last quarter.

CarMax Price Performance

Shares of KMX stock opened at $38.31 on Friday. CarMax has a 1-year low of $30.26 and a 1-year high of $71.99. The stock's 50-day moving average is $42.16 and its 200 day moving average is $41.69. The company has a market cap of $5.43 billion, a P/E ratio of 23.94, a PEG ratio of 1.39 and a beta of 1.30. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.20 and a quick ratio of 0.49.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings data on Tuesday, April 14th. The company reported $0.34 earnings per share for the quarter, beating analysts' consensus estimates of $0.22 by $0.12. CarMax had a return on equity of 7.00% and a net margin of 0.96%.The company had revenue of $5.95 billion for the quarter, compared to the consensus estimate of $5.65 billion. During the same quarter last year, the company earned $0.58 earnings per share. The firm's revenue for the quarter was down 1.0% compared to the same quarter last year. Research analysts predict that CarMax will post 2.41 earnings per share for the current fiscal year.

About CarMax

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.