CarMax (NYSE:KMX) Trading Up 8.2% Following Analyst Upgrade

Shares of CarMax, Inc. (NYSE:KMX) shot up 8.2% on Wednesday after Robert W. Baird raised their price target on the stock from $44.00 to $48.00. Robert W. Baird currently has an outperform rating on the stock. CarMax traded as high as $46.18 and last traded at $45.7290. 3,042,738 shares were traded during trading, a decline of 15% from the average session volume of 3,578,119 shares. The stock had previously closed at $42.25.

Several other brokerages have also recently commented on KMX. Weiss Ratings restated a “sell (d)” rating on shares of CarMax in a report on Friday, January 9th. JPMorgan Chase & Co. reduced their price target on shares of CarMax from $30.00 to $28.00 and set an “underweight” rating on the stock in a research report on Friday, December 19th. Stephens lowered their price objective on shares of CarMax from $39.00 to $36.00 and set an “equal weight” rating for the company in a research report on Friday, December 19th. Bank of America upped their target price 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. Finally, Wedbush decreased their price target on shares of CarMax from $40.00 to $36.00 and set a “neutral” rating on the stock in a research note on Friday, December 19th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twelve have assigned a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $39.21.

Institutional Trading of CarMax

Institutional investors have recently bought and sold shares of the business. SRS Investment Management LLC increased its holdings in CarMax by 1,717.5% in the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock valued at $217,845,000 after purchasing an additional 5,327,603 shares during the last quarter. AQR Capital Management LLC grew its position in shares of CarMax by 151.8% during the 4th quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock worth $306,429,000 after buying an additional 4,780,903 shares during the period. Norges Bank bought a new stake in shares of CarMax in the 4th quarter valued at about $159,232,000. Arrowstreet Capital Limited Partnership raised its position in shares of CarMax by 1,410.5% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 2,028,718 shares of the company’s stock valued at $136,350,000 after acquiring an additional 1,894,408 shares during the period. Finally, The Manufacturers Life Insurance Company boosted its stake in CarMax by 795.5% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,846,406 shares of the company’s stock worth $124,097,000 after acquiring an additional 1,640,219 shares during the last quarter.

CarMax Stock Performance

The company has a quick ratio of 0.51, a current ratio of 1.99 and a debt-to-equity ratio of 2.74. The stock has a market cap of $6.49 billion, a price-to-earnings ratio of 15.10, a PEG ratio of 1.01 and a beta of 1.35. The stock’s fifty day moving average is $43.38 and its 200-day moving average is $46.37.

CarMax (NYSE:KMX) last released its quarterly earnings results on Thursday, December 18th. The company reported $0.43 EPS for the quarter, topping analysts’ consensus estimates of $0.31 by $0.12. CarMax had a return on equity of 7.72% and a net margin of 1.77%.The company had revenue of $5.79 billion for the quarter, compared to analyst estimates of $5.66 billion. During the same quarter last year, the firm posted $0.81 earnings per share. CarMax’s revenue was down 6.9% compared to the same quarter last year. On average, analysts forecast that CarMax, Inc. will post 3.23 EPS for the current 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.