CarMax (NYSE:KMX) Price Target Lowered to $35.00 at BNP Paribas Exane

Key Points

• BNP Paribas Exane has significantly lowered CarMax's price target from $52.00 to $35.00, indicating a potential downside of 21.98%.
• The company reported earnings per share (EPS) of $0.64 for the last quarter, missing the consensus estimate by $0.39, with a revenue of $6.59 billion, below the expected $7.07 billion.
• Analyst ratings remain mixed, with one Strong Buy, six Buy, six Hold, and one Sell rating, leading to a current consensus rating of "Moderate Buy" and a target price of $63.31.

CarMax (NYSE:KMX - Get Free Report) had its price objective lowered by BNP Paribas Exane from $52.00 to $35.00 in a report released on Friday,MarketScreener reports. The brokerage currently has an "underperform" rating on the stock. BNP Paribas Exane's price objective indicates a potential downside of 21.98% from the company's previous close.

KMX has been the topic of several other reports. Needham & Company LLC cut their price objective on shares of CarMax from $92.00 to $60.00 and set a "buy" rating on the stock in a report on Friday. Morgan Stanley initiated coverage on shares of CarMax in a research report on Tuesday, July 1st. They issued an "overweight" rating and a $80.00 target price for the company. 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. Oppenheimer reiterated a "market perform" rating on shares of CarMax in a research note on Friday. Finally, Robert W. Baird dropped their target price on shares of CarMax from $90.00 to $60.00 and set an "outperform" rating for the company in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, CarMax currently has a consensus rating of "Moderate Buy" and a consensus target price of $63.31.

CarMax Stock Performance

Shares of KMX opened at $44.86 on Friday. The company's fifty day moving average price is $58.59 and its 200 day moving average price is $64.81. CarMax has a one year low of $42.75 and a one year high of $91.25. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.46 and a quick ratio of 0.80. The company has a market capitalization of $6.73 billion, a PE ratio of 13.16, a price-to-earnings-growth ratio of 0.74 and a beta of 1.35.

CarMax (NYSE:KMX - Get Free Report) last posted its quarterly earnings data on Thursday, September 25th. The company reported $0.64 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.03 by ($0.39). The company had revenue of $6.59 billion for the quarter, compared to the consensus estimate of $7.07 billion. CarMax had a return on equity of 8.51% and a net margin of 1.98%.The business's revenue for the quarter was down 6.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.85 EPS. As a group, analysts expect that CarMax will post 3.23 earnings per share for the current year.

Insiders Place Their Bets

In related news, EVP Jon G. Daniels sold 1,540 shares of the stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $70.64, for a total transaction of $108,785.60. Following the completion of the transaction, the executive vice president owned 2,779 shares in the company, valued at approximately $196,308.56. This represents a 35.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 1.70% of the company's stock.

Institutional Investors Weigh In On CarMax

A number of institutional investors and hedge funds have recently modified their holdings of KMX. Texas Permanent School Fund Corp raised its stake in CarMax by 59.5% in the second quarter. Texas Permanent School Fund Corp now owns 27,488 shares of the company's stock valued at $1,847,000 after purchasing an additional 10,259 shares in the last quarter. Osaic Holdings Inc. grew its holdings in shares of CarMax by 49.0% in the second quarter. Osaic Holdings Inc. now owns 159,895 shares of the company's stock worth $10,768,000 after purchasing an additional 52,576 shares during the last quarter. Orion Porfolio Solutions LLC boosted its holdings in CarMax by 14.4% in the second quarter. Orion Porfolio Solutions LLC now owns 24,411 shares of the company's stock valued at $1,641,000 after acquiring an additional 3,070 shares in the last quarter. Thrivent Financial for Lutherans boosted its holdings in CarMax by 202.1% in the second quarter. Thrivent Financial for Lutherans now owns 26,230 shares of the company's stock valued at $1,762,000 after acquiring an additional 17,548 shares in the last quarter. Finally, Cape Investment Advisory Inc. lifted its position in CarMax by 3.7% during the second quarter. Cape Investment Advisory Inc. now owns 15,792 shares of the company's stock valued at $1,061,000 after buying an additional 568 shares during the period.

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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