CarMax, Inc (NYSE:KMX) Given Average Recommendation of “Buy” by Analysts

CarMax, Inc (NYSE:KMX) has received an average rating of “Buy” from the fifteen ratings firms that are covering the company, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold recommendation and ten have assigned a buy recommendation to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $93.81.

KMX has been the subject of several recent research reports. Morgan Stanley set a $60.00 price target on Berry Global Group and gave the company a “hold” rating in a research report on Wednesday, April 17th. Robert W. Baird increased their price target on CarMax from $80.00 to $99.00 and gave the company an “outperform” rating in a research report on Monday, June 24th. Stephens initiated coverage on Twilio in a research report on Monday, April 1st. They set a “hold” rating and a $110.00 price target for the company. Wedbush set a $18.00 price target on Catabasis Pharmaceuticals and gave the company a “buy” rating in a research report on Monday, June 24th. Finally, Argus initiated coverage on CarMax in a research report on Friday, June 28th. They set a “buy” rating and a $100.00 price target for the company.

Shares of NYSE:KMX traded down $2.40 during mid-day trading on Tuesday, reaching $86.39. 3,757,800 shares of the stock were exchanged, compared to its average volume of 1,835,834. The company has a current ratio of 2.21, a quick ratio of 0.49 and a debt-to-equity ratio of 4.20. The company has a market capitalization of $14.73 billion, a P/E ratio of 18.04, a P/E/G ratio of 1.34 and a beta of 1.21. CarMax has a one year low of $55.24 and a one year high of $89.40. The business’s 50 day moving average price is $84.07.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Friday, June 21st. The company reported $1.59 EPS for the quarter, beating the consensus estimate of $1.49 by $0.10. CarMax had a return on equity of 25.37% and a net margin of 4.64%. The firm had revenue of $5.37 billion during the quarter, compared to analysts’ expectations of $5.17 billion. During the same period in the prior year, the firm posted $1.33 earnings per share. The business’s quarterly revenue was up 12.0% compared to the same quarter last year. As a group, research analysts forecast that CarMax will post 5.27 EPS for the current fiscal year.

In other news, CEO William D. Nash sold 86,762 shares of the firm’s stock in a transaction that occurred on Tuesday, June 25th. The stock was sold at an average price of $83.53, for a total value of $7,247,229.86. Following the completion of the sale, the chief executive officer now directly owns 173,546 shares of the company’s stock, valued at $14,496,297.38. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Thomas W. Reedy, Jr. sold 77,000 shares of the firm’s stock in a transaction that occurred on Tuesday, June 25th. The shares were sold at an average price of $83.20, for a total value of $6,406,400.00. Following the completion of the sale, the chief financial officer now directly owns 138,520 shares of the company’s stock, valued at $11,524,864. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 360,154 shares of company stock valued at $30,156,292. Insiders own 2.09% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Akre Capital Management LLC increased its stake in shares of CarMax by 5.2% during the first quarter. Akre Capital Management LLC now owns 6,077,981 shares of the company’s stock worth $424,243,000 after purchasing an additional 300,800 shares during the period. Brown Advisory Inc. increased its stake in shares of CarMax by 1.1% during the fourth quarter. Brown Advisory Inc. now owns 2,551,474 shares of the company’s stock worth $160,054,000 after purchasing an additional 26,977 shares during the period. Geode Capital Management LLC increased its stake in shares of CarMax by 6.8% during the fourth quarter. Geode Capital Management LLC now owns 2,190,864 shares of the company’s stock worth $137,181,000 after purchasing an additional 140,198 shares during the period. Northern Trust Corp increased its stake in shares of CarMax by 2.8% during the fourth quarter. Northern Trust Corp now owns 1,962,841 shares of the company’s stock worth $123,129,000 after purchasing an additional 53,495 shares during the period. Finally, Dimensional Fund Advisors LP increased its stake in shares of CarMax by 20.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,504,891 shares of the company’s stock worth $94,404,000 after purchasing an additional 258,689 shares during the period.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles; vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions; and extended protection plans to customers at the time of sale.

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Analyst Recommendations for CarMax (NYSE:KMX)

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