JPMorgan Chase & Co. Cuts CarMax (NYSE:KMX) Price Target to $50.00

Key Points

• JPMorgan Chase & Co. has lowered its price target for CarMax from $65.00 to $50.00, maintaining a "neutral" rating, indicating a potential upside of 11.59% from the stock's current price.
• Other analysts have also adjusted their price targets, with Truist Financial setting a target of $47.00 and Needham & Company at $60.00, reflecting a general trend of downgrading expectations for CarMax.
• CarMax reported a quarterly earnings miss, with $0.64 EPS falling short of the consensus estimate of $1.03 and a revenue of $6.59 billion, down 6.0% from the previous year.

CarMax (NYSE:KMX - Get Free Report) had its price objective reduced by analysts at JPMorgan Chase & Co. from $65.00 to $50.00 in a research note issued to investors on Friday,MarketScreener reports. The firm currently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s price target would suggest a potential upside of 11.59% from the stock's current price.

A number of other equities analysts have also recently commented on the stock. Truist Financial reduced their price objective on shares of CarMax from $74.00 to $47.00 and set a "hold" rating for the company in a research report on Friday. Needham & Company LLC reduced their price objective on shares of CarMax from $92.00 to $60.00 and set a "buy" rating for the company in a research report on Friday. Oppenheimer reissued a "market perform" rating on shares of CarMax in a report on Friday. Morgan Stanley started coverage on CarMax in a report on Tuesday, July 1st. They set an "overweight" rating and a $80.00 target price for the company. Finally, Mizuho dropped their target price on CarMax from $80.00 to $78.00 and set a "neutral" rating for the company in a report on Thursday, July 3rd. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, CarMax has a consensus rating of "Moderate Buy" and an average price target of $62.15.

CarMax Price Performance

NYSE:KMX opened at $44.81 on Friday. The company has a current ratio of 2.46, a quick ratio of 1.06 and a debt-to-equity ratio of 2.87. The firm has a fifty day simple moving average of $58.59 and a 200 day simple moving average of $64.72. CarMax has a 1-year low of $42.75 and a 1-year high of $91.25. The stock has a market capitalization of $6.72 billion, a PE ratio of 13.16, a P/E/G ratio of 0.76 and a beta of 1.35.

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

Insider Buying and Selling

In other CarMax news, EVP Jon G. Daniels sold 1,540 shares of the business's stock in a transaction dated 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 approximately $196,308.56. The trade was a 35.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.70% of the company's stock.

Institutional Trading of CarMax

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Texas Permanent School Fund Corp grew its holdings in shares of CarMax by 59.5% during the second quarter. Texas Permanent School Fund Corp now owns 27,488 shares of the company's stock worth $1,847,000 after purchasing an additional 10,259 shares during the last quarter. Osaic Holdings Inc. boosted its holdings in 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 acquiring an additional 52,576 shares during the last quarter. Orion Porfolio Solutions LLC lifted its stake 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 buying an additional 3,070 shares during the period. Thrivent Financial for Lutherans lifted its stake 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 buying an additional 17,548 shares during the period. Finally, Cape Investment Advisory Inc. lifted its stake in 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 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.