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

Key Points

• CarMax has an average “Reduce” rating from 20 analysts: three recommend selling, 15 advise holding, and two recommend buying. The average 12-month price target is $51, below the stock’s reported $57.33 opening price.
• CarMax exceeded quarterly expectations, reporting $1.31 EPS versus the $0.96 consensus and $8.01 billion in revenue versus $7.42 billion expected. Revenue rose 6.2% year over year, although EPS declined from $1.38 in the prior-year quarter.
• Company insiders bought 13,900 shares worth approximately $735,574 during the last quarter, including purchases by CEO Keith Barr and Director Sona Chawla.

CarMax, Inc. (NYSE:KMX - Get Free Report) has been given an average recommendation of "Reduce" by the twenty ratings firms that are covering the stock, Marketbeat reports. Three analysts have rated the stock with a sell recommendation, fifteen have given a hold recommendation and two have assigned a buy recommendation to the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $51.00.

Several research firms have recently weighed in on KMX. Argus upgraded shares of CarMax to a "hold" rating in a research report on Thursday, April 16th. Morgan Stanley boosted their price objective on shares of CarMax from $35.00 to $44.00 and gave the stock an "equal weight" rating in a report on Tuesday, June 23rd. Stephens raised shares of CarMax from an "equal weight" rating to an "overweight" rating and set a $66.00 price target for the company in a research note on Thursday, June 18th. Barclays upgraded CarMax from an "underweight" rating to an "equal weight" rating and increased their target price for the company from $37.00 to $61.00 in a report on Tuesday, July 21st. Finally, Weiss Ratings upgraded CarMax from a "sell (d)" rating to a "sell (d+)" rating in a research report on Monday, July 20th.

CarMax Trading Up 0.1%

Shares of KMX stock opened at $57.33 on Monday. The business's fifty day moving average is $51.74 and its 200 day moving average is $45.73. CarMax has a 52-week low of $30.26 and a 52-week high of $62.56. The company has a market capitalization of $8.14 billion, a PE ratio of 37.47, a price-to-earnings-growth ratio of 2.62 and a beta of 1.15. The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.82 and a current ratio of 2.70.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.96 by $0.35. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The firm had revenue of $8.01 billion during the quarter, compared to the consensus estimate of $7.42 billion. During the same quarter last year, the company posted $1.38 EPS. The company's revenue for the quarter was up 6.2% on a year-over-year basis. On average, equities research analysts anticipate that CarMax will post 2.73 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Sona Chawla acquired 2,000 shares of the firm's stock in a transaction on Thursday, June 25th. The shares were purchased at an average price of $53.39 per share, for a total transaction of $106,780.00. Following the completion of the transaction, the director owned 21,702 shares of the company's stock, valued at $1,158,669.78. The trade was a 10.15% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Keith Barr bought 9,400 shares of the business's stock in a transaction that occurred on Monday, June 22nd. The stock was acquired at an average cost of $53.01 per share, for a total transaction of $498,294.00. Following the completion of the purchase, the chief executive officer directly owned 33,375 shares of the company's stock, valued at $1,769,208.75. The trade was a 39.21% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought a total of 13,900 shares of company stock valued at $735,574 in the last quarter. Insiders own 1.01% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in KMX. CYBER HORNET ETFs LLC purchased a new position in shares of CarMax during the second quarter valued at about $28,000. MUFG Securities EMEA plc purchased a new position in CarMax during the second quarter valued at $30,000. Basecamp Wealth Advisors LLC boosted its holdings in shares of CarMax by 105.8% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company's stock valued at $26,000 after buying an additional 327 shares in the last quarter. Huntington National Bank grew its position in shares of CarMax by 62.4% in the 4th quarter. Huntington National Bank now owns 690 shares of the company's stock worth $27,000 after buying an additional 265 shares during the period. Finally, Advisory Services Network LLC bought a new position in shares of CarMax in the 3rd quarter worth about $32,000.

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.