Mizuho Boosts CarMax (NYSE:KMX) Price Target to $43.00

Key Points

• Mizuho raised its price target on CarMax from $38 to $43 and kept a neutral rating. The new target still implies about a 9% downside from the previous close.
• Analyst sentiment remains cautious overall, with the stock carrying an average rating of "Reduce" and an average price target of $43.20 across Wall Street coverage.
• CarMax’s latest quarter beat expectations, posting EPS of $1.31 versus $0.96 expected on revenue of $8.01 billion, up 6.2% year over year.

CarMax (NYSE:KMX - Get Free Report) had its price target increased by equities research analysts at Mizuho from $38.00 to $43.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Mizuho's target price would suggest a potential downside of 9.16% from the company's previous close.

KMX has been the subject of a number of other reports. JPMorgan Chase & Co. raised their price objective on shares of CarMax from $35.00 to $37.00 and gave the company an "underweight" rating in a research report on Thursday, June 11th. Truist Financial upped their target price on shares of CarMax from $37.00 to $47.00 and gave the stock a "hold" rating in a report on Tuesday. Bank of America upped their target price on shares of CarMax from $40.00 to $45.00 and gave the stock an "underperform" rating in a report on Wednesday. Evercore set a $45.00 target price on shares of CarMax in a report on Friday, April 10th. Finally, UBS Group initiated coverage on shares of CarMax in a report on Wednesday, May 27th. They set a "neutral" rating and a $42.00 target price on the stock. One equities research analyst has rated the stock with a Buy rating, fourteen have assigned a Hold rating and five have issued a Sell rating to the company's stock. According to data from MarketBeat.com, CarMax has an average rating of "Reduce" and an average price target of $43.20.

CarMax Trading Down 9.2%

NYSE:KMX opened at $47.34 on Thursday. The company has a market cap of $6.71 billion, a P/E ratio of 29.59, a P/E/G ratio of 1.97 and a beta of 1.21. The stock's fifty day moving average price is $42.36 and its two-hundred day moving average price is $42.45. CarMax has a 1 year low of $30.26 and a 1 year high of $71.99. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.20 and a quick ratio of 0.49.

CarMax (NYSE:KMX - Get Free Report) last posted its earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.35. The firm had revenue of $8.01 billion for the quarter, compared to the consensus estimate of $7.42 billion. CarMax had a return on equity of 7.00% and a net margin of 0.96%.The business's quarterly revenue was up 6.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.38 earnings per share. As a group, analysts expect that CarMax will post 2.3 EPS for the current year.

Institutional Investors Weigh In On CarMax

Institutional investors and hedge funds have recently made changes to their positions in the business. Intech Investment Management LLC raised its position in shares of CarMax by 129.4% in the third quarter. Intech Investment Management LLC now owns 86,444 shares of the company's stock worth $3,879,000 after buying an additional 48,757 shares in the last quarter. Silver Heights Capital Management Inc raised its position in shares of CarMax by 39.5% in the third quarter. Silver Heights Capital Management Inc now owns 926,167 shares of the company's stock worth $41,557,000 after buying an additional 262,478 shares in the last quarter. Freestone Capital Holdings LLC purchased a new stake in shares of CarMax in the fourth quarter worth $968,000. Dimensional Fund Advisors LP raised its position in shares of CarMax by 33.2% in the third quarter. Dimensional Fund Advisors LP now owns 3,685,201 shares of the company's stock worth $165,358,000 after buying an additional 918,553 shares in the last quarter. Finally, Rings Capital Management LLC raised its position in shares of CarMax by 71.6% in the third quarter. Rings Capital Management LLC now owns 1,074,000 shares of the company's stock worth $48,190,000 after buying an additional 448,000 shares in the last quarter.

More CarMax News

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: CarMax beat expectations with Q1 EPS of $1.31 versus $0.96 expected, while revenue rose 6.2% to $8.01 billion. Business Wire earnings release
• Positive Sentiment: Management highlighted early progress under a new four-pillar strategy focused on pricing, digital simplification, cost control, and finance penetration, which may support longer-term improvement. Zacks earnings call article
• Neutral Sentiment: Higher used-vehicle prices and stronger wholesale demand helped revenue, but the market appears to be waiting for clearer evidence that the turnaround can lift margins, not just sales. Reuters revenue estimate article
• Negative Sentiment: Profitability disappointed as price cuts used to stimulate sales pressured margins, and investors reacted negatively to signs that earnings growth may remain constrained. WSJ profit falls article
• Negative Sentiment: The company also secured a $500 million term loan, which may have raised focus on leverage and financing costs, especially given already thin margins. TipRanks term loan article

CarMax Company Profile

CarMax NYSE: KMX is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company's inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax's retail locations or browse the company's online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.

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