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

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

CarMax, Inc. (NYSE:KMX – Get Rating) has earned a consensus rating of “Hold” from the fourteen ratings firms that are covering the company, Marketbeat.com reports. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and six have assigned a buy rating to the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $126.89.

Is Carmax Stock Geared For Higher Prices?

Several brokerages recently commented on KMX. StockNews.com began coverage on CarMax in a research report on Thursday, March 31st. They set a “sell” rating on the stock. Oppenheimer cut their target price on CarMax from $158.00 to $125.00 and set an “outperform” rating on the stock in a research report on Friday, April 8th. JPMorgan Chase & Co. cut their target price on CarMax from $110.00 to $105.00 in a research report on Tuesday, June 7th. Robert W. Baird cut their target price on CarMax from $140.00 to $120.00 in a research report on Wednesday, April 13th. Finally, TheStreet lowered CarMax from a “b-” rating to a “c+” rating in a research report on Tuesday, April 12th.

Insiders Place Their Bets

In other news, EVP Diane L. Cafritz sold 18,092 shares of the firm’s stock in a transaction that occurred on Friday, July 1st. The stock was sold at an average price of $91.06, for a total value of $1,647,457.52. Following the transaction, the executive vice president now owns 4,988 shares in the company, valued at $454,207.28. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, EVP Mohammad Shamim sold 3,456 shares of the firm’s stock in a transaction that occurred on Monday, July 18th. The stock was sold at an average price of $93.91, for a total value of $324,552.96. Following the transaction, the executive vice president now owns 8,769 shares in the company, valued at $823,496.79. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Diane L. Cafritz sold 18,092 shares of the firm’s stock in a transaction that occurred on Friday, July 1st. The shares were sold at an average price of $91.06, for a total value of $1,647,457.52. Following the completion of the transaction, the executive vice president now owns 4,988 shares in the company, valued at approximately $454,207.28. The disclosure for this sale can be found here. Corporate insiders own 1.65% of the company’s stock.

Institutional Trading of CarMax

A number of institutional investors and hedge funds have recently modified their holdings of KMX. Capital Research Global Investors increased its position in shares of CarMax by 246.3% during the fourth quarter. Capital Research Global Investors now owns 5,916,243 shares of the company’s stock valued at $770,472,000 after acquiring an additional 4,207,817 shares during the last quarter. Cooke & Bieler LP purchased a new stake in CarMax in the first quarter worth $147,235,000. Principal Financial Group Inc. increased its position in CarMax by 10.2% in the first quarter. Principal Financial Group Inc. now owns 9,933,838 shares of the company’s stock worth $958,417,000 after buying an additional 917,939 shares during the last quarter. The Manufacturers Life Insurance Company increased its position in CarMax by 19.9% in the first quarter. The Manufacturers Life Insurance Company now owns 4,911,729 shares of the company’s stock worth $473,884,000 after buying an additional 816,847 shares during the last quarter. Finally, Wellington Management Group LLP increased its position in CarMax by 29.4% in the first quarter. Wellington Management Group LLP now owns 3,548,930 shares of the company’s stock worth $342,400,000 after buying an additional 805,438 shares during the last quarter. 96.10% of the stock is owned by hedge funds and other institutional investors.

CarMax Trading Up 3.6 %

Shares of KMX stock opened at $96.16 on Wednesday. The stock has a market cap of $15.31 billion, a price-to-earnings ratio of 16.33, a PEG ratio of 1.02 and a beta of 1.40. The stock has a 50-day moving average of $93.54 and a 200-day moving average of $100.03. The company has a current ratio of 2.72, a quick ratio of 0.63 and a debt-to-equity ratio of 3.29. CarMax has a 1-year low of $84.37 and a 1-year high of $155.98.

CarMax (NYSE:KMX – Get Rating) last issued its quarterly earnings results on Friday, June 24th. The company reported $1.56 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.05. The company had revenue of $9.31 billion during the quarter, compared to analysts’ expectations of $9.38 billion. CarMax had a return on equity of 18.40% and a net margin of 2.88%. During the same quarter in the prior year, the firm posted $2.63 earnings per share. On average, equities research analysts forecast that CarMax will post 5.79 earnings per share for the current year.

About CarMax 

CarMax, Inc, together with its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates through two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old and has more than 100,000 miles through wholesale auctions.

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