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

Shares of CarMax, Inc. (NYSE:KMX) have earned a consensus rating of “Reduce” from the nineteen ratings firms that are covering the company, Marketbeat reports. Five research analysts have rated the stock with a sell recommendation, twelve have assigned a hold recommendation, one has assigned 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 $39.9286.

KMX has been the subject of several research reports. Truist Financial lifted their price objective on shares of CarMax from $35.00 to $37.00 and gave the stock a “hold” rating in a research note on Thursday, December 18th. William Blair cut CarMax from an “outperform” rating to a “market perform” rating in a research report on Thursday, November 6th. JPMorgan Chase & Co. cut their price objective on CarMax from $30.00 to $28.00 and set an “underweight” rating on the stock in a report on Friday, December 19th. Stephens decreased their target price on CarMax from $39.00 to $36.00 and set an “equal weight” rating for the company in a report on Friday, December 19th. Finally, Wedbush cut their price target on shares of CarMax from $40.00 to $36.00 and set a “neutral” rating on the stock in a report on Friday, December 19th.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. CYBER HORNET ETFs LLC acquired a new stake in CarMax during the 2nd quarter worth about $28,000. MUFG Securities EMEA plc acquired a new position in shares of CarMax in the 2nd quarter valued at $30,000. Center for Financial Planning Inc. acquired a new position in shares of CarMax in the 3rd quarter valued at $31,000. Advisory Services Network LLC purchased a new stake in CarMax during the third quarter worth $32,000. Finally, True Wealth Design LLC grew its position in CarMax by 54.3% during the fourth quarter. True Wealth Design LLC now owns 907 shares of the company’s stock valued at $35,000 after buying an additional 319 shares during the period.

CarMax Price Performance

Shares of KMX opened at $47.20 on Monday. The company has a 50 day moving average of $42.65 and a two-hundred day moving average of $47.13. The company has a quick ratio of 0.51, a current ratio of 1.99 and a debt-to-equity ratio of 2.74. CarMax has a twelve month low of $30.26 and a twelve month high of $89.47. The company has a market cap of $6.69 billion, a price-to-earnings ratio of 15.58, a price-to-earnings-growth ratio of 1.13 and a beta of 1.35.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Thursday, December 18th. The company reported $0.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.11. The business 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 business’s quarterly revenue was down 6.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.81 earnings per share. As a group, analysts predict that CarMax will post 3.23 earnings per share for the current fiscal year.

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.