CarMax (NYSE:KMX) Price Target Raised to $65.00

Key Points

• JPMorgan Chase & Co. raised its price target for CarMax (NYSE: KMX) stock from $58.00 to $65.00, suggesting a potential upside of 8.39% from its current price.
• Analysts' consensus ratings for CarMax include one "Strong Buy," nine "Buy," three "Hold," and one "Sell," with an average price target of $81.50.
• CarMax reported $1.38 EPS in its last quarterly earnings, exceeding analysts' expectations of $1.18, despite revenue being slightly below estimates at $7.55 billion.

CarMax (NYSE:KMX - Free Report) had its price objective boosted by JPMorgan Chase & Co. from $58.00 to $65.00 in a research note issued to investors on Thursday,Benzinga reports. JPMorgan Chase & Co. currently has a neutral rating on the stock.

A number of other equities research analysts have also recently weighed in on KMX. Needham & Company LLC reaffirmed a "buy" rating and set a $92.00 price target on shares of CarMax in a report on Monday, June 23rd. Evercore ISI reduced their target price on CarMax from $82.00 to $80.00 and set an "outperform" rating on the stock in a report on Tuesday, August 12th. Wedbush reiterated an "outperform" rating and set a $84.00 target price on shares of CarMax in a report on Tuesday, August 19th. Stephens cut their price target on CarMax from $81.00 to $74.00 and set an "overweight" rating on the stock in a report on Monday, September 15th. Finally, Morgan Stanley initiated coverage on CarMax in a research report on Tuesday, July 1st. They set an "overweight" rating and a $80.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $81.50.

CarMax Price Performance

Shares of CarMax stock traded down $1.58 during midday trading on Thursday, hitting $58.42. 5,808,787 shares of the company were exchanged, compared to its average volume of 2,424,319. The company has a debt-to-equity ratio of 2.86, a current ratio of 2.39 and a quick ratio of 0.80. The firm has a market cap of $8.77 billion, a P/E ratio of 16.14, a PEG ratio of 0.95 and a beta of 1.35. CarMax has a 52 week low of $54.53 and a 52 week high of $91.25. The firm has a 50 day simple moving average of $59.63 and a 200-day simple moving average of $65.52.

CarMax (NYSE:KMX - Get Free Report) last posted its earnings results on Friday, June 20th. The company reported $1.38 EPS for the quarter, topping the consensus estimate of $1.18 by $0.20. CarMax had a return on equity of 9.11% and a net margin of 2.09%.The business had revenue of $7.55 billion during the quarter, compared to the consensus estimate of $7.58 billion. During the same quarter last year, the company earned $0.97 EPS. CarMax's revenue was up 6.1% on a year-over-year basis. Research 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 the firm'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 transaction, the executive vice president directly owned 2,779 shares of the company's stock, valued at approximately $196,308.56. This trade represents a 35.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 1.70% of the company's stock.

Hedge Funds Weigh In On CarMax

A number of hedge funds have recently added to or reduced their stakes in the company. Quantinno Capital Management LP increased its stake in shares of CarMax by 125.6% in the 4th quarter. Quantinno Capital Management LP now owns 19,707 shares of the company's stock worth $1,611,000 after purchasing an additional 10,973 shares in the last quarter. Woodline Partners LP purchased a new position in shares of CarMax during the fourth quarter worth approximately $761,000. Waverly Advisors LLC boosted its stake in shares of CarMax by 2.5% during the fourth quarter. Waverly Advisors LLC now owns 15,091 shares of the company's stock valued at $1,234,000 after purchasing an additional 366 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of CarMax by 10.7% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,672,485 shares of the company's stock valued at $136,742,000 after purchasing an additional 162,160 shares in the last quarter. Finally, Focus Partners Advisor Solutions LLC acquired a new stake in CarMax in the fourth quarter valued at approximately $207,000.

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.