CarMax (NYSE:KMX) Receives “Outperform” Rating from Wedbush

Wedbush restated their outperform rating on shares of CarMax (NYSE:KMX) in a research note issued to investors on Tuesday, Benzinga reports. The brokerage currently has a $90.00 target price on the stock.

Other equities research analysts have also issued research reports about the company. Needham & Company LLC reduced their price target on CarMax from $99.00 to $91.00 and set a buy rating on the stock in a research report on Friday, April 12th. Evercore ISI cut their target price on CarMax from $72.00 to $68.00 and set an in-line rating on the stock in a research report on Thursday, June 6th. JPMorgan Chase & Co. cut their target price on CarMax from $60.00 to $55.00 and set an underweight rating on the stock in a research report on Monday, April 15th. StockNews.com raised CarMax to a sell rating in a research report on Monday, April 22nd. Finally, Royal Bank of Canada reissued an outperform rating and set a $83.00 target price on shares of CarMax in a research report on Monday, April 8th. Three investment analysts have rated the stock with a sell rating, four have issued a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of Hold and an average price target of $76.17.

CarMax Price Performance

KMX opened at $71.49 on Tuesday. The stock’s 50-day moving average price is $70.65 and its 200 day moving average price is $73.74. CarMax has a 12-month low of $59.66 and a 12-month high of $88.22. The company has a current ratio of 2.26, a quick ratio of 0.67 and a debt-to-equity ratio of 2.96. The firm has a market cap of $11.25 billion, a price-to-earnings ratio of 23.59, a PEG ratio of 1.36 and a beta of 1.69.

CarMax (NYSE:KMX) last posted its quarterly earnings results on Thursday, April 11th. The company reported $0.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.13). The company had revenue of $5.63 billion during the quarter, compared to analyst estimates of $5.76 billion. CarMax had a net margin of 1.81% and a return on equity of 7.26%. CarMax’s revenue for the quarter was down 1.7% on a year-over-year basis. During the same period in the prior year, the business earned $0.44 EPS. As a group, sell-side analysts expect that CarMax will post 3.1 earnings per share for the current year.

Insider Buying and Selling

In other CarMax news, EVP Diane L. Cafritz sold 15,356 shares of CarMax stock in a transaction that occurred on Tuesday, April 23rd. The stock was sold at an average price of $69.53, for a total value of $1,067,702.68. Following the transaction, the executive vice president now directly owns 6,977 shares in the company, valued at approximately $485,110.81. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.66% of the stock is currently owned by company insiders.

Institutional Trading of CarMax

A number of institutional investors have recently modified their holdings of the business. Vanguard Group Inc. raised its holdings in CarMax by 1.2% during the fourth quarter. Vanguard Group Inc. now owns 18,076,909 shares of the company’s stock worth $1,387,222,000 after purchasing an additional 222,132 shares during the last quarter. Norges Bank acquired a new position in CarMax during the fourth quarter worth $288,278,000. Invesco Ltd. raised its holdings in CarMax by 3.1% during the third quarter. Invesco Ltd. now owns 2,938,541 shares of the company’s stock worth $207,843,000 after purchasing an additional 88,488 shares during the last quarter. Morningstar Investment Services LLC raised its holdings in CarMax by 95.4% during the fourth quarter. Morningstar Investment Services LLC now owns 2,717,326 shares of the company’s stock worth $211,516,000 after purchasing an additional 1,326,840 shares during the last quarter. Finally, Cooke & Bieler LP raised its holdings in CarMax by 3.1% during the fourth quarter. Cooke & Bieler LP now owns 2,344,650 shares of the company’s stock worth $179,928,000 after purchasing an additional 69,409 shares during the last quarter.

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.