CarMax (NYSE:KMX) Stock Rating Upgraded by Wall Street Zen

CarMax (NYSE:KMX) was upgraded by equities research analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a research report issued on Sunday.

Several other research analysts have also recently weighed in on the company. Barclays lifted their price target on CarMax from $24.00 to $28.00 and gave the company an “underweight” rating in a research report on Wednesday, January 21st. Zacks Research raised shares of CarMax from a “strong sell” rating to a “hold” rating in a report on Monday, January 5th. Truist Financial increased their price target on shares of CarMax from $35.00 to $37.00 and gave the stock a “hold” rating in a report on Thursday, December 18th. Royal Bank Of Canada lifted their price objective on shares of CarMax from $34.00 to $37.00 and gave the company a “sector perform” rating in a report on Friday, December 19th. Finally, William Blair downgraded shares of CarMax from an “outperform” rating to a “market perform” rating in a research report on Thursday, November 6th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have issued a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus target price of $39.21.

CarMax Stock Down 0.2%

NYSE:KMX opened at $44.49 on Friday. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.99 and a quick ratio of 0.51. The company’s fifty day moving average price is $43.51 and its 200-day moving average price is $46.22. CarMax has a 1-year low of $30.26 and a 1-year high of $86.38. The firm has a market capitalization of $6.31 billion, a P/E ratio of 14.68, a PEG ratio of 1.06 and a beta of 1.35.

CarMax (NYSE:KMX) last posted its quarterly earnings results on Thursday, December 18th. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.31 by $0.12. The company had revenue of $5.79 billion for the quarter, compared to analyst estimates of $5.66 billion. CarMax had a net margin of 1.77% and a return on equity of 7.72%. The firm’s revenue was down 6.9% on a year-over-year basis. During the same period in the prior year, the company earned $0.81 earnings per share. As a group, equities research analysts anticipate that CarMax will post 3.23 EPS for the current year.

Hedge Funds Weigh In On CarMax

A number of hedge funds have recently made changes to their positions in the company. AQR Capital Management LLC increased its position in shares of CarMax by 151.8% during the fourth quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock worth $306,429,000 after purchasing an additional 4,780,903 shares in the last quarter. SRS Investment Management LLC boosted its stake in CarMax by 1,717.5% during the 4th quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock worth $217,845,000 after purchasing an additional 5,327,603 shares during the last quarter. Norges Bank purchased a new stake in shares of CarMax during the fourth quarter worth $159,232,000. Dimensional Fund Advisors LP grew its holdings in shares of CarMax by 8.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 3,985,895 shares of the company’s stock worth $154,023,000 after buying an additional 300,694 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its position in shares of CarMax by 73.7% in the third quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock valued at $158,074,000 after buying an additional 1,494,205 shares during the last quarter.

About CarMax

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.