CarMax (NYSE:KMX) Receives "Outperform" Rating from Wedbush

Wedbush reaffirmed their outperform rating on shares of CarMax (NYSE:KMX - Free Report) in a report issued on Tuesday morning, Benzinga reports. The firm currently has a $95.00 price objective on the stock.

Several other equities analysts also recently commented on the stock. Truist Financial boosted their target price on shares of CarMax from $66.00 to $70.00 and gave the stock a hold rating in a report on Monday, June 24th. Mizuho cut their price objective on CarMax from $75.00 to $72.00 and set a neutral rating for the company in a research report on Tuesday, June 18th. Evercore ISI lifted their target price on CarMax from $68.00 to $72.00 and gave the stock an in-line rating in a report on Tuesday, July 16th. StockNews.com raised CarMax to a sell rating in a research note on Friday, July 26th. Finally, Royal Bank of Canada lifted their price objective on CarMax from $73.00 to $75.00 and gave the stock an outperform rating in a research note on Monday, June 24th. Three equities research analysts have rated the stock with a sell rating, five have issued a hold rating and six have given a buy rating to the company's stock. According to MarketBeat.com, the stock has an average rating of Hold and a consensus price target of $76.25.

CarMax Stock Performance

Shares of KMX stock traded up $0.35 during trading hours on Tuesday, reaching $79.39. 1,628,540 shares of the company traded hands, compared to its average volume of 1,892,445. The company has a debt-to-equity ratio of 2.95, a current ratio of 2.50 and a quick ratio of 0.60. CarMax has a 12-month low of $59.66 and a 12-month high of $88.22. The company has a market cap of $12.39 billion, a P/E ratio of 31.01, a P/E/G ratio of 1.53 and a beta of 1.69. The firm has a 50-day moving average price of $80.26 and a 200 day moving average price of $76.53.

CarMax (NYSE:KMX - Get Free Report) last issued its earnings results on Friday, June 21st. The company reported $0.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.94 by $0.03. CarMax had a return on equity of 6.64% and a net margin of 1.55%. The company had revenue of $7.11 billion for the quarter, compared to the consensus estimate of $7.16 billion. During the same quarter last year, the company earned $1.16 EPS. The firm's quarterly revenue was down 7.5% on a year-over-year basis. As a group, sell-side analysts predict that CarMax will post 2.99 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, EVP Mohammad Shamim sold 25,000 shares of CarMax stock in a transaction that occurred on Friday, July 26th. The shares were sold at an average price of $82.26, for a total transaction of $2,056,500.00. Following the completion of the sale, the executive vice president now owns 11,738 shares of the company's stock, valued at $965,567.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, EVP Mohammad Shamim sold 25,000 shares of the firm's stock in a transaction on Friday, July 26th. The stock was sold at an average price of $82.26, for a total transaction of $2,056,500.00. Following the transaction, the executive vice president now owns 11,738 shares in the company, valued at $965,567.88. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Jon G. Daniels sold 1,231 shares of CarMax stock in a transaction dated Wednesday, June 26th. The shares were sold at an average price of $72.46, for a total value of $89,198.26. Following the completion of the sale, the senior vice president now owns 995 shares of the company's stock, valued at $72,097.70. The disclosure for this sale can be found here. Insiders have sold 185,243 shares of company stock valued at $14,893,042 in the last 90 days. Company insiders own 1.66% of the company's stock.

Hedge Funds Weigh In On CarMax

Several institutional investors have recently bought and sold shares of KMX. Gilbert & Cook Inc. increased its holdings in shares of CarMax by 5.7% in the 4th quarter. Gilbert & Cook Inc. now owns 8,011 shares of the company's stock valued at $615,000 after acquiring an additional 431 shares during the period. Beacon Pointe Advisors LLC raised its holdings in CarMax by 8.8% in the fourth quarter. Beacon Pointe Advisors LLC now owns 13,527 shares of the company's stock worth $1,038,000 after purchasing an additional 1,090 shares in the last quarter. Kentucky Retirement Systems lifted its position in shares of CarMax by 2.0% during the fourth quarter. Kentucky Retirement Systems now owns 12,695 shares of the company's stock valued at $974,000 after buying an additional 252 shares during the last quarter. Norges Bank bought a new stake in shares of CarMax in the 4th quarter valued at about $288,278,000. Finally, D.A. Davidson & CO. grew its position in shares of CarMax by 3.5% in the 4th quarter. D.A. Davidson & CO. now owns 11,850 shares of the company's stock worth $909,000 after buying an additional 400 shares during 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.