CarMax's (KMX) "Inline" Rating Reaffirmed at Evercore ISI

Key Points

• Evercore ISI has reaffirmed an "in-line" rating for CarMax (NYSE:KMX), with a target price reduced to $52.00, indicating a potential upside of 13.89% from the current price.
• CarMax reported a quarterly EPS of $0.64, missing analyst expectations of $1.03, and experienced a 6.0% decline in revenue compared to the previous year.
• Analysts have mixed ratings for CarMax, with one Strong Buy, six Buy, six Hold, and one Sell, leading to a consensus rating of "Moderate Buy" and an average target price of $74.00.

CarMax (NYSE:KMX - Get Free Report)'s stock had its "inline" rating restated by equities researchers at Evercore ISI in a research report issued to clients and investors on Friday, Marketbeat Ratings reports. They presently have a $52.00 price target on the stock, down from their prior price target of $80.00. Evercore ISI's price objective suggests a potential upside of 13.89% from the company's current price.

A number of other research firms have also recently issued reports on KMX. 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. Morgan Stanley initiated coverage on shares of CarMax in a report on Tuesday, July 1st. They set an "overweight" rating and a $80.00 target price for the company. 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. Mizuho reduced their target price on shares of CarMax from $80.00 to $78.00 and set a "neutral" rating for the company in a report on Thursday, July 3rd. Finally, Needham & Company LLC reissued a "buy" rating and set a $92.00 target price on shares of CarMax in a report on Monday, June 23rd. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, CarMax presently has a consensus rating of "Moderate Buy" and an average price target of $74.00.

CarMax Trading Down 20.0%

NYSE KMX opened at $45.66 on Friday. The company has a fifty day simple moving average of $58.95 and a two-hundred day simple moving average of $65.00. The stock has a market cap of $6.85 billion, a P/E ratio of 12.61, a P/E/G ratio of 0.93 and a beta of 1.35. CarMax has a 12-month low of $42.75 and a 12-month high of $91.25. The company has a current ratio of 2.39, a quick ratio of 0.80 and a debt-to-equity ratio of 2.86.

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

Insider Activity

In other news, EVP Jon G. Daniels sold 1,540 shares of CarMax 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 sale, the executive vice president owned 2,779 shares in the company, 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 through this link. 1.70% of the stock is currently owned by company insiders.

Institutional Trading of CarMax

Several institutional investors have recently modified their holdings of the stock. Texas Permanent School Fund Corp grew its position in shares of 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 during the period. Osaic Holdings Inc. grew its position in shares of CarMax by 49.0% in the second quarter. Osaic Holdings Inc. now owns 159,895 shares of the company's stock valued at $10,768,000 after purchasing an additional 52,576 shares during the period. Orion Porfolio Solutions LLC grew its position in shares of 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 purchasing an additional 3,070 shares during the period. Thrivent Financial for Lutherans grew its position in shares of 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 purchasing an additional 17,548 shares during the period. Finally, Cape Investment Advisory Inc. grew its position in shares of CarMax by 3.7% in the second quarter. Cape Investment Advisory Inc. now owns 15,792 shares of the company's stock valued at $1,061,000 after purchasing an additional 568 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.