CarMax, Inc. (NYSE:KMX) Receives Consensus Recommendation of “Hold” from Analysts

CarMax, Inc. (NYSE:KMX) has received a consensus recommendation of “Hold” from the fourteen ratings firms that are presently covering the company, MarketBeat.com reports. Three research analysts have rated the stock with a sell recommendation, four have issued a hold recommendation and seven have assigned a buy recommendation to the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $87.50.

KMX has been the topic of a number of research reports. Mizuho raised their target price on shares of CarMax from $72.00 to $80.00 and gave the stock a “neutral” rating in a research note on Friday, December 20th. Royal Bank of Canada raised their price target on shares of CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a report on Thursday, December 19th. Stephens initiated coverage on shares of CarMax in a report on Thursday, December 5th. They set an “equal weight” rating and a $86.00 price target for the company. Truist Financial raised their price target on shares of CarMax from $72.00 to $88.00 and gave the stock a “hold” rating in a report on Friday, December 20th. Finally, StockNews.com upgraded shares of CarMax from a “sell” rating to a “hold” rating in a report on Friday, December 20th.

CarMax Trading Down 3.5 %

KMX opened at $82.62 on Monday. The company has a debt-to-equity ratio of 2.92, a current ratio of 2.30 and a quick ratio of 0.55. The company’s 50 day simple moving average is $83.39 and its two-hundred day simple moving average is $80.15. CarMax has a 1-year low of $65.83 and a 1-year high of $91.25. The firm has a market capitalization of $12.71 billion, a price-to-earnings ratio of 28.01, a price-to-earnings-growth ratio of 1.67 and a beta of 1.72.

CarMax (NYSE:KMX) last released its earnings results on Thursday, December 19th. The company reported $0.81 earnings per share for the quarter, topping analysts’ consensus estimates of $0.62 by $0.19. CarMax had a net margin of 1.77% and a return on equity of 7.49%. The business had revenue of $6.22 billion for the quarter, compared to analyst estimates of $6.05 billion. During the same period last year, the company posted $0.52 EPS. The business’s revenue was up 1.2% on a year-over-year basis. Analysts expect that CarMax will post 3.23 EPS for the current fiscal year.

Insider Activity at CarMax

In other news, SVP Tyler Tuite sold 4,869 shares of the company’s stock in a transaction on Tuesday, January 28th. The stock was sold at an average price of $84.58, for a total transaction of $411,820.02. Following the sale, the senior vice president now owns 227 shares of the company’s stock, valued at approximately $19,199.66. This represents a 95.55 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO William D. Nash sold 120,513 shares of the company’s stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $83.24, for a total value of $10,031,502.12. Following the sale, the chief executive officer now directly owns 181,683 shares in the company, valued at $15,123,292.92. This represents a 39.88 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 264,467 shares of company stock worth $21,915,445. Insiders own 1.66% of the company’s stock.

Institutional Trading of CarMax

Large investors have recently modified their holdings of the stock. Catalyst Capital Advisors LLC purchased a new stake in shares of CarMax during the third quarter worth $32,000. Cromwell Holdings LLC increased its position in shares of CarMax by 104.8% during the fourth quarter. Cromwell Holdings LLC now owns 424 shares of the company’s stock worth $35,000 after acquiring an additional 217 shares during the period. True Wealth Design LLC increased its position in shares of CarMax by 4,844.4% during the third quarter. True Wealth Design LLC now owns 445 shares of the company’s stock worth $34,000 after acquiring an additional 436 shares during the period. Allworth Financial LP increased its position in shares of CarMax by 62.7% during the fourth quarter. Allworth Financial LP now owns 646 shares of the company’s stock worth $51,000 after acquiring an additional 249 shares during the period. Finally, ST Germain D J Co. Inc. acquired a new position in shares of CarMax during the fourth quarter worth $58,000.

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.