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

CarMax, Inc. (NYSE:KMX) has been assigned an average rating of “Reduce” from the twenty brokerages that are currently covering the stock, MarketBeat reports. Six research analysts have rated the stock with a sell rating, twelve have given a hold rating, one has issued a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $39.3571.

KMX has been the topic of a number of research reports. William Blair lowered CarMax from an “outperform” rating to a “market perform” rating in a report on Thursday, November 6th. Barclays cut their price target on shares of CarMax from $28.00 to $24.00 and set an “underweight” rating on the stock in a report on Friday, December 19th. Bank of America raised their price target on shares of CarMax from $27.00 to $31.00 and gave the stock an “underperform” rating in a research report on Friday, December 19th. Seaport Res Ptn downgraded shares of CarMax from a “strong-buy” rating to a “hold” rating in a report on Sunday, September 28th. Finally, Royal Bank Of Canada increased their price objective on shares of CarMax from $34.00 to $37.00 and gave the stock a “sector perform” rating in a research note on Friday, December 19th.

CarMax Trading Up 0.7%

NYSE KMX opened at $46.80 on Thursday. CarMax has a 12-month low of $30.26 and a 12-month high of $89.47. The company has a fifty day simple moving average of $38.57 and a two-hundred day simple moving average of $49.55. The company has a current ratio of 1.99, a quick ratio of 0.51 and a debt-to-equity ratio of 2.74. The stock has a market cap of $6.64 billion, a P/E ratio of 15.44, a P/E/G ratio of 1.11 and a beta of 1.29.

CarMax (NYSE:KMX) last released its earnings results on Thursday, December 18th. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.11. The firm had revenue of $5.79 billion for the quarter, compared to the consensus estimate of $5.66 billion. CarMax had a return on equity of 7.72% and a net margin of 1.77%.The firm’s revenue was down 6.9% on a year-over-year basis. During the same period in the prior year, the firm earned $0.81 EPS. On average, analysts forecast that CarMax will post 3.23 earnings per share for the current year.

Hedge Funds Weigh In On CarMax

Institutional investors have recently modified their holdings of the stock. Meriwether Wealth & Planning LLC lifted its holdings in shares of CarMax by 59.3% in the 4th quarter. Meriwether Wealth & Planning LLC now owns 22,295 shares of the company’s stock valued at $861,000 after buying an additional 8,301 shares during the period. Wedge Capital Management L L P NC raised its position in CarMax by 38.8% during the fourth quarter. Wedge Capital Management L L P NC now owns 175,450 shares of the company’s stock valued at $6,779,000 after acquiring an additional 49,049 shares in the last quarter. Pallas Capital Advisors LLC lifted its holdings in CarMax by 290.9% in the fourth quarter. Pallas Capital Advisors LLC now owns 22,903 shares of the company’s stock valued at $885,000 after acquiring an additional 17,044 shares during the period. SG Americas Securities LLC boosted its position in CarMax by 324.3% in the 4th quarter. SG Americas Securities LLC now owns 177,754 shares of the company’s stock worth $6,868,000 after purchasing an additional 135,858 shares in the last quarter. Finally, Independence Wealth Advisors LLC purchased a new stake in CarMax in the 4th quarter worth approximately $252,000.

CarMax Company Profile

CarMax (NYSE: KMX) is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company’s inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax’s retail locations or browse the company’s online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.