CarMax (NYSE:KMX) Price Target Cut to $47.00 by Analysts at Truist Financial

Key Points

• Truist Financial has reduced CarMax's target price from $74.00 to $47.00 while maintaining a "hold" rating, suggesting only a potential upside of 4.12% from its previous close.
• CarMax reported quarterly earnings of $0.64 per share, significantly missing analysts' expectations of $1.03, with revenues down 6.0% year-over-year.
• The stock currently has a consensus rating of "Moderate Buy" and an average target price of $67.42, with analysts divided on future prospects: one strong buy, six buys, six holds, and one sell rating.

CarMax (NYSE:KMX - Get Free Report) had its target price dropped by research analysts at Truist Financial from $74.00 to $47.00 in a research report issued on Friday,Benzinga reports. The brokerage currently has a "hold" rating on the stock. Truist Financial's price objective points to a potential upside of 4.12% from the company's previous close.

Several other research analysts have also commented on the company. Oppenheimer reiterated a "market perform" rating on shares of CarMax in a research report on Friday. Benchmark began coverage on CarMax in a research report on Thursday, July 17th. They issued a "buy" rating and a $75.00 price target for the company. Mizuho dropped their price target on CarMax from $80.00 to $78.00 and set a "neutral" rating for the company in a research report on Thursday, July 3rd. JPMorgan Chase & Co. lifted their price target on CarMax from $58.00 to $65.00 and gave the stock a "neutral" rating in a research report on Thursday, September 18th. Finally, Needham & Company LLC dropped their price target on CarMax from $92.00 to $60.00 and set a "buy" rating for the company in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $67.42.

CarMax Price Performance

Shares of CarMax stock traded down $0.46 during trading on Friday, reaching $45.14. 3,636,589 shares of the stock traded hands, compared to its average volume of 3,074,375. The company has a market capitalization of $6.77 billion, a price-to-earnings ratio of 12.51, a P/E/G ratio of 0.93 and a beta of 1.35. The business has a fifty day simple moving average of $58.95 and a two-hundred day simple moving average of $65.00. 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 has a 52-week low of $42.75 and a 52-week high of $91.25.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings data on Thursday, September 25th. The company reported $0.64 earnings per share for the quarter, missing analysts' consensus estimates of $1.03 by ($0.39). The firm had revenue of $6.59 billion for the quarter, compared to analysts' expectations of $7.07 billion. CarMax had a net margin of 2.09% and a return on equity of 9.11%. The company's revenue for the quarter was down 6.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.85 EPS. Sell-side analysts expect that CarMax will post 3.23 EPS for the current year.

Insider Transactions at CarMax

In other CarMax news, EVP Jon G. Daniels sold 1,540 shares of the firm's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $70.64, for a total value of $108,785.60. Following the completion of the sale, the executive vice president owned 2,779 shares of the company's stock, valued at $196,308.56. This trade represents 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 hyperlink. 1.70% of the stock is currently owned by insiders.

Institutional Trading of CarMax

Several institutional investors and hedge funds have recently modified their holdings of KMX. Universal Beteiligungs und Servicegesellschaft mbH bought a new stake in shares of CarMax during the fourth quarter valued at approximately $8,848,000. Centaurus Financial Inc. raised its stake in shares of CarMax by 32.1% during the fourth quarter. Centaurus Financial Inc. now owns 9,969 shares of the company's stock valued at $815,000 after acquiring an additional 2,422 shares in the last quarter. First Hawaiian Bank raised its stake in shares of CarMax by 118.8% during the first quarter. First Hawaiian Bank now owns 7,307 shares of the company's stock valued at $569,000 after acquiring an additional 3,968 shares in the last quarter. Central Pacific Bank Trust Division bought a new stake in shares of CarMax during the first quarter valued at approximately $101,000. Finally, Versant Capital Management Inc raised its stake in shares of CarMax by 2,454.4% during the first quarter. Versant Capital Management Inc now owns 2,631 shares of the company's stock valued at $205,000 after acquiring an additional 2,528 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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