CarMax (NYSE:KMX) Price Target Cut to $60.00 by Analysts at Needham & Company LLC

Key Points

• CarMax's price target has been cut from $92.00 to $60.00 by analysts at Needham & Company LLC, though they maintain a "buy" rating, suggesting a potential upside of 31.41% from the current price.
• The company reported earnings of $0.64 per share, missing expectations of $1.03, and experienced a 6% year-over-year revenue decline to $6.59 billion.
• Several institutional investors have significantly increased their holdings in CarMax, indicating strong interest from hedge funds amid the stock's recent challenges.

CarMax (NYSE:KMX - Get Free Report) had its price target lowered by equities researchers at Needham & Company LLC from $92.00 to $60.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has a "buy" rating on the stock. Needham & Company LLC's price target would suggest a potential upside of 31.41% from the stock's current price.

Other research analysts have also recently issued research reports about the stock. Truist Financial upped their target price on shares of CarMax from $72.00 to $74.00 and gave the company a "hold" rating in a research report on Monday, June 23rd. Morgan Stanley assumed coverage on shares of CarMax in a research report on Tuesday, July 1st. They set an "overweight" rating and a $80.00 price target on the stock. Benchmark assumed coverage on shares of CarMax in a research report on Thursday, July 17th. They set a "buy" rating and a $75.00 price target on the stock. Mizuho reduced their price target on shares of CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a research report on Thursday, July 3rd. Finally, Stephens reduced their price target on shares of CarMax from $81.00 to $74.00 and set an "overweight" rating on the stock in a research report on Monday, September 15th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, CarMax presently has an average rating of "Moderate Buy" and an average target price of $74.00.

CarMax Trading Down 20.0%

KMX opened at $45.66 on Friday. The company has a debt-to-equity ratio of 2.86, a current ratio of 2.39 and a quick ratio of 0.80. The company's 50 day simple moving average is $58.95 and its two-hundred day simple moving average is $65.00. CarMax has a 1-year low of $42.75 and a 1-year high of $91.25. The firm has a market capitalization of $6.85 billion, a price-to-earnings ratio of 12.61, a price-to-earnings-growth ratio of 0.93 and a beta of 1.35.

CarMax (NYSE:KMX - Get Free Report) last released its earnings results 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). CarMax had a return on equity of 9.11% and a net margin of 2.09%.The business had revenue of $6.59 billion during the quarter, compared to analysts' expectations of $7.07 billion. During the same period last year, the business earned $0.85 earnings per share. The company's revenue for the quarter was down 6.0% compared to the same quarter last year. Analysts expect that CarMax will post 3.23 EPS for the current fiscal year.

Insider Buying and Selling

In other CarMax news, EVP Jon G. Daniels sold 1,540 shares of CarMax stock in a transaction dated Wednesday, July 2nd. The stock was 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 in the company, valued at $196,308.56. The trade was a 35.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 1.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On CarMax

Several hedge funds and other institutional investors have recently modified their holdings of the company. Norges Bank acquired a new position in CarMax during the 2nd quarter worth approximately $208,144,000. AQR Capital Management LLC lifted its position in CarMax by 195.3% during the 2nd quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company's stock worth $298,107,000 after acquiring an additional 2,947,996 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in CarMax by 1,410.5% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 2,028,718 shares of the company's stock worth $136,350,000 after acquiring an additional 1,894,408 shares in the last quarter. The Manufacturers Life Insurance Company lifted its position in CarMax by 795.5% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,846,406 shares of the company's stock worth $124,097,000 after acquiring an additional 1,640,219 shares in the last quarter. Finally, Fuller & Thaler Asset Management Inc. lifted its position in CarMax by 626.1% during the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 903,024 shares of the company's stock worth $70,364,000 after acquiring an additional 778,652 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.