Evercore ISI Cuts CarMax (NYSE:KMX) Price Target to $80.00

Key Points

• Evercore ISI has lowered its price target for CarMax from $82.00 to $80.00, while maintaining an "outperform" rating, indicating a potential upside of 43.04% from the stock's previous close.
• CarMax's stock is currently trading at $55.93, significantly below its 12-month high of $91.25, reflecting fluctuations in market performance.
• Despite recent challenges, CarMax reported a quarterly earnings per share of $1.38, surpassing analysts' estimates, and saw year-over-year revenue growth of 6.1% to $7.55 billion.

CarMax (NYSE:KMX - Get Free Report) had its price target cut by research analysts at Evercore ISI from $82.00 to $80.00 in a research report issued on Tuesday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Evercore ISI's target price would suggest a potential upside of 43.04% from the stock's previous close.

Several other research analysts also recently issued reports on the company. Benchmark began coverage on CarMax in a research report on Thursday, July 17th. They set a "buy" rating and a $75.00 price objective for the company. Wedbush reissued an "outperform" rating and set a $90.00 price objective on shares of CarMax in a research note on Wednesday, June 18th. JPMorgan Chase & Co. upgraded shares of CarMax from an "underweight" rating to a "neutral" rating and cut their price objective for the stock from $65.00 to $58.00 in a report on Wednesday, August 6th. Royal Bank Of Canada increased their price objective on shares of CarMax from $80.00 to $81.00 and gave the stock an "outperform" rating in a research note on Monday, June 23rd. Finally, Morgan Stanley began 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. One research analyst has rated the stock with a sell rating, four have issued a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat, CarMax currently has a consensus rating of "Moderate Buy" and a consensus target price of $82.75.

CarMax Stock Up 1.8%

Shares of NYSE KMX opened at $55.93 on Tuesday. CarMax has a 12-month low of $54.53 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. The stock has a market cap of $8.39 billion, a P/E ratio of 15.45, a PEG ratio of 0.89 and a beta of 1.36. The business's fifty day simple moving average is $63.89 and its 200-day simple moving average is $70.47.

CarMax (NYSE:KMX - Get Free Report) last released its quarterly earnings results on Friday, June 20th. The company reported $1.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.18 by $0.20. CarMax had a return on equity of 9.11% and a net margin of 2.09%. The firm had revenue of $7.55 billion for the quarter, compared to analyst estimates of $7.58 billion. During the same quarter last year, the company posted $0.97 earnings per share. The business's revenue was up 6.1% on a year-over-year basis. As a group, equities analysts predict that CarMax will post 3.23 EPS for the current fiscal year.

Insider Buying and Selling

In other news, EVP Jon G. Daniels sold 1,540 shares of the company's stock in a transaction on 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 directly owned 2,779 shares of the company's stock, valued at approximately $196,308.56. This represents a 35.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 1.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Mirae Asset Global Investments Co. Ltd. boosted its stake in shares of CarMax by 13.0% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 20,678 shares of the company's stock valued at $1,571,000 after purchasing an additional 2,375 shares in the last quarter. Teacher Retirement System of Texas bought a new stake in shares of CarMax during the 1st quarter valued at about $1,753,000. Sequoia Financial Advisors LLC raised its holdings in CarMax by 5.5% in the first quarter. Sequoia Financial Advisors LLC now owns 3,367 shares of the company's stock worth $262,000 after buying an additional 176 shares during the last quarter. Asset Management One Co. Ltd. raised its holdings in shares of CarMax by 3.5% during the first quarter. Asset Management One Co. Ltd. now owns 60,653 shares of the company's stock valued at $4,726,000 after purchasing an additional 2,078 shares during the last quarter. Finally, GAMMA Investing LLC increased its holdings in CarMax by 12.6% during the first quarter. GAMMA Investing LLC now owns 6,620 shares of the company's stock valued at $516,000 after buying an additional 742 shares during 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.

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