Brokerages Set CarMax, Inc. (NYSE:KMX) Target Price at $41.54

CarMax, Inc. (NYSE:KMX) has earned an average recommendation of “Reduce” from the nineteen research firms that are currently covering the stock, MarketBeat.com reports. Five research analysts have rated the stock with a sell recommendation, twelve have issued a hold recommendation, one has given a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $41.5385.

KMX has been the subject of a number of recent analyst reports. Wedbush reiterated a “neutral” rating and set a $40.00 target price on shares of CarMax in a research report on Tuesday, November 18th. Evercore ISI decreased their price objective on shares of CarMax from $52.00 to $35.00 and set an “in-line” rating on the stock in a research note on Thursday, November 6th. Zacks Research lowered shares of CarMax from a “hold” rating to a “strong sell” rating in a report on Thursday, October 2nd. Stephens downgraded CarMax from an “overweight” rating to an “equal weight” rating and reduced their target price for the stock from $53.00 to $42.00 in a report on Tuesday, October 7th. Finally, Barclays assumed coverage on CarMax in a research report on Tuesday, November 11th. They set an “underweight” rating and a $28.00 price target on the stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. AQR Capital Management LLC increased its position in CarMax by 195.3% in the 2nd quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company’s stock valued at $298,107,000 after acquiring an additional 2,947,996 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of CarMax by 33.2% during the third quarter. Dimensional Fund Advisors LP now owns 3,685,201 shares of the company’s stock worth $165,358,000 after purchasing an additional 918,553 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of CarMax by 73.7% during the third quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock valued at $158,074,000 after purchasing an additional 1,494,205 shares during the last quarter. Invesco Ltd. increased its holdings in shares of CarMax by 14.2% in the third quarter. Invesco Ltd. now owns 3,425,737 shares of the company’s stock valued at $153,713,000 after purchasing an additional 426,809 shares in the last quarter. Finally, Baird Financial Group Inc. increased its holdings in shares of CarMax by 6.6% in the second quarter. Baird Financial Group Inc. now owns 3,298,113 shares of the company’s stock valued at $221,666,000 after purchasing an additional 204,481 shares in the last quarter.

CarMax Price Performance

Shares of KMX stock opened at $38.72 on Wednesday. The stock’s fifty day simple moving average is $40.86 and its 200 day simple moving average is $54.87. CarMax has a one year low of $30.26 and a one year high of $91.25. The firm has a market cap of $5.69 billion, a price-to-earnings ratio of 11.36, a P/E/G ratio of 0.81 and a beta of 1.29. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.46 and a quick ratio of 1.06.

CarMax (NYSE:KMX) last released its quarterly earnings data on Thursday, September 25th. The company reported $0.64 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.03 by ($0.39). The company had revenue of $6.70 billion for the quarter, compared to analyst estimates of $7.07 billion. CarMax had a return on equity of 8.51% and a net margin of 1.98%.The business’s revenue was down 6.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.85 earnings per share. On average, analysts expect that CarMax will post 3.23 earnings per share for the current fiscal year.

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.