CarMax's (KMX) Outperform Rating Reiterated at Wedbush

CarMax (NYSE:KMX - Get Free Report)'s stock had its "outperform" rating reaffirmed by Wedbush in a research note issued on Tuesday, Benzinga reports. They presently have a $90.00 price objective on the stock. Wedbush's price target would indicate a potential upside of 25.89% from the stock's current price.

A number of other research firms also recently issued reports on KMX. Bank of America raised their price objective on shares of CarMax from $44.00 to $50.00 and gave the stock an "underperform" rating in a report on Thursday, February 29th. StockNews.com raised shares of CarMax to a "sell" rating in a report on Monday, April 22nd. Evercore ISI dropped their price objective on shares of CarMax from $72.00 to $68.00 and set an "in-line" rating on the stock in a report on Thursday, June 6th. Robert W. Baird dropped their price objective on shares of CarMax from $88.00 to $84.00 and set an "outperform" rating on the stock in a report on Friday, April 12th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of CarMax from $60.00 to $55.00 and set an "underweight" rating on the stock in a report on Monday, April 15th. Three analysts have rated the stock with a sell rating, four have given a hold rating and five have given a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $76.17.

CarMax Stock Performance

Shares of KMX stock traded down $0.19 during trading hours on Tuesday, reaching $71.49. The company had a trading volume of 2,819,896 shares, compared to its average volume of 1,955,469. The business has a fifty day moving average price of $70.65 and a 200-day moving average price of $73.74. CarMax has a one year low of $59.66 and a one year high of $88.22. The firm has a market cap of $11.25 billion, a PE ratio of 23.61, a price-to-earnings-growth ratio of 1.36 and a beta of 1.69. The company has a debt-to-equity ratio of 2.96, a quick ratio of 0.67 and a current ratio of 2.26.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings results on Thursday, April 11th. The company reported $0.32 EPS for the quarter, missing analysts' consensus estimates of $0.45 by ($0.13). CarMax had a return on equity of 7.26% and a net margin of 1.81%. The company had revenue of $5.63 billion during the quarter, compared to the consensus estimate of $5.76 billion. During the same quarter in the prior year, the firm earned $0.44 earnings per share. The business's revenue was down 1.7% compared to the same quarter last year. Sell-side analysts predict that CarMax will post 3.1 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP Diane L. Cafritz sold 15,356 shares of the company's stock in a transaction on Tuesday, April 23rd. The shares were sold at an average price of $69.53, for a total transaction of $1,067,702.68. Following the completion of the transaction, the executive vice president now owns 6,977 shares in the company, valued at $485,110.81. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.66% of the stock is owned by company insiders.

Hedge Funds Weigh In On CarMax

A number of hedge funds and other institutional investors have recently modified their holdings of KMX. BNP Paribas Financial Markets raised its stake in CarMax by 16.4% during the fourth quarter. BNP Paribas Financial Markets now owns 127,402 shares of the company's stock valued at $9,777,000 after purchasing an additional 17,973 shares in the last quarter. Fairview Capital Investment Management LLC raised its stake in CarMax by 7.0% during the fourth quarter. Fairview Capital Investment Management LLC now owns 251,530 shares of the company's stock valued at $19,302,000 after purchasing an additional 16,438 shares in the last quarter. Quadrature Capital Ltd purchased a new stake in CarMax during the fourth quarter valued at $5,637,000. Charles Schwab Investment Management Inc. raised its stake in CarMax by 3.1% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 991,111 shares of the company's stock valued at $76,058,000 after purchasing an additional 30,107 shares in the last quarter. Finally, First Pacific Advisors LP raised its stake in CarMax by 1.2% during the fourth quarter. First Pacific Advisors LP now owns 2,331,545 shares of the company's stock valued at $178,923,000 after purchasing an additional 28,095 shares in the last quarter.

CarMax Company Profile

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.