CarMax (NYSE:KMX) Price Target Lowered to $53.00 at Stephens

Key Points

• CarMax's price target has been lowered from $74.00 to $53.00 by Stephens, while still maintaining an "overweight" rating on the stock, suggesting an upside potential of 18.15% from its previous close.
• The company recently reported quarterly earnings of $0.64 EPS, missing the consensus estimate of $1.03 EPS, with revenues of $6.59 billion falling short of expectations.
• Multiple analysts have varied ratings for CarMax, including one "Strong Buy," six "Buy," six "Hold," and one "Sell," with an average target price of $63.31.

CarMax (NYSE:KMX - Get Free Report) had its price target lowered by investment analysts at Stephens from $74.00 to $53.00 in a report released on Friday,MarketScreener reports. The firm presently has an "overweight" rating on the stock. Stephens' target price would suggest a potential upside of 18.15% from the stock's previous close.

A number of other analysts have also recently issued reports on KMX. Oppenheimer reissued a "market perform" rating on shares of CarMax in a research note on Friday. JPMorgan Chase & Co. raised their target price on shares of CarMax from $58.00 to $65.00 and gave the stock a "neutral" rating in a report on Thursday, September 18th. Benchmark initiated coverage on shares of CarMax in a report on Thursday, July 17th. They issued a "buy" rating and a $75.00 price target for the company. Robert W. Baird cut their price objective on shares of CarMax from $90.00 to $60.00 and set an "outperform" rating on the stock in a research report on Friday. Finally, Needham & Company LLC dropped their target price on shares of CarMax from $92.00 to $60.00 and set a "buy" rating on the stock in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $63.31.

CarMax Stock Performance

CarMax stock opened at $44.86 on Friday. The company has a quick ratio of 0.80, a current ratio of 2.46 and a debt-to-equity ratio of 2.87. The company has a market capitalization of $6.73 billion, a PE ratio of 13.16, a P/E/G ratio of 0.74 and a beta of 1.35. The firm has a fifty day simple moving average of $58.59 and a two-hundred day simple moving average of $64.81. CarMax has a twelve month low of $42.75 and a twelve month high of $91.25.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings results 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 analysts' expectations of $7.07 billion. CarMax had a net margin of 1.98% and a return on equity of 8.51%. CarMax's quarterly revenue was down 6.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.85 EPS. Research analysts expect that CarMax will post 3.23 EPS for the current year.

Insider Activity at CarMax

In other news, EVP Jon G. Daniels sold 1,540 shares of CarMax stock in a transaction on Wednesday, July 2nd. The stock was 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 of the company's stock, valued at $196,308.56. The trade was a 35.66% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders own 1.70% of the company's stock.

Institutional Trading of CarMax

A number of institutional investors and hedge funds have recently bought and sold shares of KMX. Norges Bank bought a new position in CarMax during the second quarter valued at about $208,144,000. AQR Capital Management LLC grew its stake in shares of CarMax by 195.3% in the second 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 during the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in CarMax by 1,410.5% during the second quarter. Arrowstreet Capital Limited Partnership now owns 2,028,718 shares of the company's stock worth $136,350,000 after buying an additional 1,894,408 shares in the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of CarMax by 795.5% during the second quarter. The Manufacturers Life Insurance Company now owns 1,846,406 shares of the company's stock valued at $124,097,000 after acquiring an additional 1,640,219 shares during the period. Finally, Fuller & Thaler Asset Management Inc. lifted its holdings in shares of CarMax by 626.1% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 903,024 shares of the company's stock valued at $70,364,000 after acquiring an additional 778,652 shares during the period.

CarMax Company Profile

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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