CarMax (NYSE:KMX) Earns "Neutral" Rating from Wedbush

Key Points

• Wedbush analysts have restated CarMax's stock rating as "neutral" with a target price of $54.00, indicating a potential upside of 21.71%.
• CarMax reported a quarterly earnings per share (EPS) of $0.64, significantly missing the consensus estimate of $1.03, alongside a year-over-year revenue decline of 6.0%.
• Analysts’ ratings for CarMax vary, with one strong buy, five buys, eight holds, and three sells, reflecting mixed sentiments in the market.

CarMax (NYSE:KMX - Get Free Report)'s stock had its "neutral" rating restated by equities researchers at Wedbush in a report released on Thursday,Benzinga reports. They presently have a $54.00 target price on the stock. Wedbush's price target suggests a potential upside of 21.71% from the company's previous close.

A number of other analysts also recently commented on KMX. Wall Street Zen downgraded CarMax from a "hold" rating to a "sell" rating in a research note on Friday, October 3rd. Seaport Res Ptn cut shares of CarMax from a "strong-buy" rating to a "hold" rating in a research report on Sunday, September 28th. Benchmark reduced their price objective on shares of CarMax from $75.00 to $60.00 and set a "buy" rating for the company in a research report on Tuesday, October 7th. Robert W. Baird lowered their price objective on shares of CarMax from $90.00 to $60.00 and set an "outperform" rating on the stock in a research note on Friday, September 26th. Finally, Royal Bank Of Canada cut their target price on shares of CarMax from $81.00 to $59.00 and set an "outperform" rating for the company in a research note on Friday, September 26th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $51.75.

CarMax Stock Up 0.8%

CarMax stock opened at $44.37 on Thursday. CarMax has a 52 week low of $42.75 and a 52 week high of $91.25. The stock has a market cap of $6.52 billion, a price-to-earnings ratio of 13.01, a PEG ratio of 0.84 and a beta of 1.27. The company's 50-day moving average price is $54.95 and its two-hundred day moving average price is $62.33. 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 (NYSE:KMX - Get Free Report) last posted its quarterly earnings data on Thursday, September 25th. The company reported $0.64 EPS for the quarter, missing analysts' consensus estimates of $1.03 by ($0.39). The company had revenue of $6.59 billion for the quarter, compared to analyst estimates of $7.07 billion. CarMax had a net margin of 1.98% and a return on equity of 8.51%. CarMax'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, analysts expect that CarMax will post 3.23 EPS for the current fiscal year.

Institutional Trading of CarMax

Several large investors have recently added to or reduced their stakes in KMX. Borer Denton & Associates Inc. lifted its holdings in shares of CarMax by 9.0% in the third quarter. Borer Denton & Associates Inc. now owns 20,037 shares of the company's stock valued at $899,000 after purchasing an additional 1,646 shares in the last quarter. Pacer Advisors Inc. raised its position in CarMax by 51.1% during the third quarter. Pacer Advisors Inc. now owns 18,847 shares of the company's stock valued at $846,000 after buying an additional 6,377 shares during the period. World Investment Advisors lifted its stake in CarMax by 0.7% in the 3rd quarter. World Investment Advisors now owns 109,370 shares of the company's stock worth $4,907,000 after acquiring an additional 740 shares in the last quarter. Brookstone Capital Management boosted its position in CarMax by 14.1% during the 3rd quarter. Brookstone Capital Management now owns 4,933 shares of the company's stock worth $221,000 after acquiring an additional 609 shares during the period. Finally, Triangle Securities Wealth Management grew its stake in CarMax by 2.9% during the 3rd quarter. Triangle Securities Wealth Management now owns 21,213 shares of the company's stock valued at $952,000 after acquiring an additional 600 shares in the last quarter.

About CarMax

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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