Robert W. Baird Issues Pessimistic Forecast for CarMax (NYSE:KMX) Stock Price

Key Points

• Robert W. Baird has lowered its target price for CarMax (NYSE: KMX) from $90.00 to $60.00, indicating a potential upside of 32.16% from the current price.
• CarMax recently reported $0.64 EPS for the quarter, missing analyst expectations of $1.03, while its revenue also fell short at $6.59 billion versus estimated $7.07 billion.
• Various analysts have given mixed ratings on CarMax, with a consensus average price target of $69.67 which suggests a generally cautious outlook for the stock.

CarMax (NYSE:KMX - Get Free Report) had its target price lowered by research analysts at Robert W. Baird from $90.00 to $60.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Robert W. Baird's target price indicates a potential upside of 32.16% from the company's current price.

A number of other research firms have also recently commented on KMX. Morgan Stanley began coverage on CarMax in a research note on Tuesday, July 1st. They set an "overweight" rating and a $80.00 price target on the stock. Wedbush cut CarMax from an "outperform" rating to a "neutral" rating and lowered their target price for the company from $84.00 to $54.00 in a report on Thursday. JPMorgan Chase & Co. increased their price target on shares of CarMax from $58.00 to $65.00 and gave the stock a "neutral" rating in a research report on Thursday, September 18th. Benchmark assumed coverage on shares of CarMax in a report on Thursday, July 17th. They set a "buy" rating and a $75.00 target price on the stock. Finally, Oppenheimer reiterated a "market perform" rating on shares of CarMax in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $69.67.

CarMax Stock Down 0.4%

NYSE KMX opened at $45.40 on Friday. The business's fifty day simple moving average is $58.95 and its 200-day simple moving average is $65.00. The company has a quick ratio of 0.80, a current ratio of 2.39 and a debt-to-equity ratio of 2.86. The firm has a market cap of $6.81 billion, a PE ratio of 12.65, a P/E/G ratio of 0.93 and a beta of 1.35. CarMax has a 52 week low of $42.75 and a 52 week high of $91.25.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings results on Thursday, September 25th. The company reported $0.64 EPS for the quarter, missing the consensus estimate of $1.03 by ($0.39). The business had revenue of $6.59 billion during the quarter, compared to analyst estimates of $7.07 billion. CarMax had a net margin of 2.09% and a return on equity of 9.11%. The business's revenue for the quarter was down 6.0% on a year-over-year basis. During the same period last year, the company earned $0.85 EPS. As a group, equities analysts anticipate that CarMax will post 3.23 earnings per share for the current year.

Insider Activity

In other CarMax news, EVP Jon G. Daniels sold 1,540 shares of the stock in a transaction on Wednesday, July 2nd. The stock was 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 $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 is available at this link. Corporate insiders own 1.70% of the company's stock.

Hedge Funds Weigh In On CarMax

Several institutional investors and hedge funds have recently added to or reduced their stakes in KMX. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in CarMax during the fourth quarter valued at approximately $8,848,000. Centaurus Financial Inc. lifted its holdings in shares of CarMax by 32.1% during the 4th quarter. Centaurus Financial Inc. now owns 9,969 shares of the company's stock valued at $815,000 after buying an additional 2,422 shares during the last quarter. First Hawaiian Bank raised its position in CarMax by 118.8% during the first quarter. First Hawaiian Bank now owns 7,307 shares of the company's stock valued at $569,000 after acquiring an additional 3,968 shares in the last quarter. Central Pacific Bank Trust Division acquired a new position in shares of CarMax during the 1st quarter worth $101,000. Finally, Versant Capital Management Inc raised its holdings in shares of CarMax by 2,454.4% during the 1st quarter. Versant Capital Management Inc now owns 2,631 shares of the company's stock valued at $205,000 after purchasing an additional 2,528 shares in the last quarter.

CarMax Company Profile

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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