CarMax, Inc. (NYSE:KMX) Stock Has Consensus Price Target of $58.00 According to Analysts

Key Points

• Analysts’ consensus on CarMax is “Hold”: Of 17 analysts, 12 rate the stock Hold, three Buy, one Strong Buy, and one Sell. The average 12-month price target is $58.
• Recent analyst target changes were mixed: Morgan Stanley raised its target to $53, RBC to $56, and Truist to $60, while keeping neutral or Hold ratings.
• CarMax’s latest quarterly results beat expectations: EPS was $1.16 versus a $0.73 consensus, and revenue of $7.88 billion exceeded estimates of $7.09 billion and grew 19.5% year over year.

CarMax, Inc. (NYSE:KMX - Get Free Report) has been assigned an average recommendation of "Hold" from the seventeen analysts that are covering the stock, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, twelve have given a hold recommendation, three have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year target price among brokers that have covered the stock in the last year is $58.00.

A number of equities analysts have commented on the company. Wall Street Zen lowered CarMax from a "buy" rating to a "hold" rating in a research note on Saturday, October 31st. Morgan Stanley upped their target price on CarMax from $47.00 to $53.00 and gave the company an "equal weight" rating in a research report on Wednesday, September 30th. Weiss Ratings upgraded CarMax from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, October 30th. Royal Bank Of Canada increased their target price on CarMax from $45.00 to $56.00 and gave the stock a "sector perform" rating in a report on Wednesday, September 30th. Finally, Truist Financial raised their price target on CarMax from $50.00 to $60.00 and gave the stock a "hold" rating in a research report on Wednesday, September 30th.

Hedge Funds Weigh In On CarMax

Hedge funds have recently bought and sold shares of the company. Basecamp Wealth Advisors LLC lifted its holdings in shares of CarMax by 105.8% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company's stock worth $26,000 after acquiring an additional 327 shares during the period. Covestor Ltd boosted its position in shares of CarMax by 471.1% during the 3rd quarter. Covestor Ltd now owns 514 shares of the company's stock worth $28,000 after acquiring an additional 424 shares in the last quarter. Global Retirement Partners LLC bought a new position in CarMax in the second quarter valued at approximately $29,000. Wellington Grp LLC increased its stake in CarMax by 6,500.0% in the first quarter. Wellington Grp LLC now owns 726 shares of the company's stock valued at $30,000 after acquiring an additional 715 shares during the last quarter. Finally, Provenance Wealth Advisors LLC bought a new position in CarMax in the third quarter valued at approximately $31,000.

CarMax Price Performance

Shares of NYSE KMX opened at $54.05 on Wednesday. The firm has a market cap of $7.67 billion, a P/E ratio of 26.37, a price-to-earnings-growth ratio of 1.46 and a beta of 1.22. The company has a current ratio of 2.33, a quick ratio of 0.57 and a debt-to-equity ratio of 2.66. CarMax has a 1-year low of $31.95 and a 1-year high of $65.28. The business's 50 day moving average is $55.85 and its 200-day moving average is $49.68.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings data on Tuesday, September 29th. The company reported $1.16 EPS for the quarter, beating analysts' consensus estimates of $0.73 by $0.43. CarMax had a return on equity of 7.76% and a net margin of 1.06%. The firm had revenue of $7.88 billion for the quarter, compared to analyst estimates of $7.09 billion. During the same period in the prior year, the firm posted $0.64 EPS. The company's revenue for the quarter was up 19.5% on a year-over-year basis. Equities research analysts predict that CarMax will post 3.23 earnings per share for the current year.

About CarMax

CarMax, Inc. is a U.S. used-vehicle retailer headquartered in Richmond, Virginia. The company sells used cars, trucks and SUVs through a network of retail stores and online platforms, where customers can browse vehicles and complete parts of the buying process digitally. In addition to retail sales, CarMax buys vehicles from consumers and operates wholesale auctions for vehicles that are not sold through its retail stores. Its related services include vehicle financing through CarMax Auto Finance and optional vehicle protection products.

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