CarMax (NYSE:KMX) Earns Buy Rating from Analysts at Benchmark

Benchmark assumed coverage on shares of CarMax (NYSE:KMX - Free Report) in a report published on Thursday morning, MarketBeat reports. The firm issued a buy rating and a $75.00 price objective on the stock.

Several other research firms have also commented on KMX. Stephens raised shares of CarMax from an "equal weight" rating to an "overweight" rating and lifted their price target for the company from $86.00 to $90.00 in a report on Wednesday, March 26th. Evercore ISI reduced their target price on shares of CarMax from $85.00 to $84.00 and set an "outperform" rating for the company in a research note on Wednesday, May 28th. Royal Bank Of Canada raised their price target on shares of CarMax from $80.00 to $81.00 and gave the company an "outperform" rating in a research note on Monday, June 23rd. Truist Financial lifted their target price on CarMax from $72.00 to $74.00 and gave the company a "hold" rating in a research note on Monday, June 23rd. Finally, Robert W. Baird lowered their target price on shares of CarMax from $95.00 to $90.00 and set an "outperform" rating on the stock in a research note on Friday, April 11th. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating, nine have given a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, CarMax presently has a consensus rating of "Moderate Buy" and an average target price of $83.67.

CarMax Price Performance

CarMax stock traded up $0.37 during mid-day trading on Thursday, hitting $62.65. 2,810,909 shares of the company were exchanged, compared to its average volume of 2,432,261. CarMax has a 12-month low of $61.34 and a 12-month high of $91.25. The company has a market capitalization of $9.40 billion, a P/E ratio of 17.31, a PEG ratio of 1.01 and a beta of 1.38. The business's 50 day simple moving average is $66.14 and its two-hundred day simple moving average is $72.90. The company has a debt-to-equity ratio of 2.86, a current ratio of 2.39 and a quick ratio of 0.80.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings data on Friday, June 20th. The company reported $1.38 EPS for the quarter, beating analysts' consensus estimates of $1.18 by $0.20. CarMax had a return on equity of 9.11% and a net margin of 2.09%. The business had revenue of $7.55 billion during the quarter, compared to the consensus estimate of $7.58 billion. During the same quarter in the previous year, the business earned $0.97 earnings per share. The business's revenue for the quarter was up 6.1% on a year-over-year basis. Analysts forecast that CarMax will post 3.23 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Mitchell D. Steenrod bought 1,300 shares of the business's stock in a transaction that occurred on Thursday, April 24th. The stock was acquired at an average price of $65.49 per share, for a total transaction of $85,137.00. Following the transaction, the director directly owned 33,577 shares of the company's stock, valued at $2,198,957.73. This represents a 4.03% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Jon G. Daniels sold 1,540 shares of the stock in a transaction on Wednesday, July 2nd. The stock was sold at an average price of $70.64, for a total value of $108,785.60. Following the transaction, the executive vice president owned 2,779 shares of the company's stock, valued at $196,308.56. This represents a 35.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 1.70% of the company's stock.

Institutional Trading of CarMax

Several institutional investors and hedge funds have recently made changes to their positions in the business. Zions Bancorporation National Association UT acquired a new position in CarMax during the 1st quarter worth approximately $27,000. Accent Capital Management LLC bought a new position in shares of CarMax in the first quarter valued at $34,000. Strengthening Families & Communities LLC lifted its stake in CarMax by 93.1% in the 1st quarter. Strengthening Families & Communities LLC now owns 531 shares of the company's stock valued at $39,000 after purchasing an additional 256 shares during the last quarter. Ameriflex Group Inc. acquired a new position in shares of CarMax during the 4th quarter worth approximately $53,000. Finally, Quarry LP lifted its position in CarMax by 50.5% during the first quarter. Quarry LP now owns 694 shares of the company's stock worth $54,000 after acquiring an additional 233 shares during 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.