Zacks Investment Research upgraded shares of CarMax Inc (NYSE:KMX) from a hold rating to a buy rating in a research note published on Tuesday, July 11th. The brokerage currently has $72.00 price target on the stock.
According to Zacks, “CarMax has outperformed the Zacks-categorized Retail/Wholesale-Auto Parts industry in the last three months. Lately, both the quarterly and the yearly earnings estimates are moving up. CarMax’s focus on the used-car market helps it to outperform the industry. The company is among the strongest operators in its peer group. Also, its aggressive store-expansion is expected to benefit the company. Moreover, share repurchases will boost shareholder returns. However, the average selling prices in used vehicle as well as wholesale vehicle segment has been declining. The increase in the supply of used vehicles is expected to further lower prices.”
A number of other equities analysts also recently commented on KMX. UBS AG downgraded shares of CarMax from a positive rating to a neutral rating in a research note on Thursday, June 22nd. Wedbush restated a hold rating on shares of CarMax in a research note on Saturday, April 8th. ValuEngine downgraded shares of CarMax from a buy rating to a hold rating in a research note on Friday, May 19th. Credit Suisse Group set a $75.00 target price on shares of CarMax and gave the company a buy rating in a report on Monday, April 10th. Finally, Royal Bank Of Canada raised shares of CarMax from a sector perform rating to an outperform rating and increased their price target for the stock from $63.00 to $69.00 in a report on Thursday, June 22nd. One research analyst has rated the stock with a sell rating, seven have given a hold rating, eight have issued a buy rating and one has given a strong buy rating to the stock. CarMax has an average rating of Buy and an average target price of $69.00.
Shares of CarMax (KMX) opened at 64.42 on Tuesday. The company has a market cap of $11.80 billion, a PE ratio of 18.50 and a beta of 1.34. CarMax has a 12 month low of $47.50 and a 12 month high of $69.11. The firm’s 50-day moving average price is $64.65 and its 200 day moving average price is $62.81.
CarMax (NYSE:KMX) last posted its quarterly earnings data on Wednesday, June 21st. The company reported $1.13 earnings per share for the quarter, topping analysts’ consensus estimates of $0.98 by $0.15. CarMax had a return on equity of 21.72% and a net margin of 4.07%. The business had revenue of $4.54 billion for the quarter, compared to analyst estimates of $4.46 billion. During the same quarter in the prior year, the company earned $0.90 earnings per share. The company’s revenue was up 10.1% on a year-over-year basis. Equities research analysts anticipate that CarMax will post $3.70 earnings per share for the current fiscal year.
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In related news, CFO Thomas W. Reedy, Jr. sold 8,583 shares of CarMax stock in a transaction on Thursday, July 27th. The shares were sold at an average price of $66.87, for a total transaction of $573,945.21. Following the sale, the chief financial officer now owns 70,522 shares of the company’s stock, valued at approximately $4,715,806.14. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Thomas J. Folliard sold 50,000 shares of CarMax stock in a transaction on Friday, June 23rd. The stock was sold at an average price of $61.41, for a total transaction of $3,070,500.00. Following the sale, the director now directly owns 509,166 shares in the company, valued at approximately $31,267,884.06. The disclosure for this sale can be found here. Insiders have sold a total of 188,515 shares of company stock worth $12,085,019 in the last ninety days. 1.70% of the stock is currently owned by insiders.
A number of large investors have recently added to or reduced their stakes in the company. BlackRock Inc. increased its stake in CarMax by 3,199.4% in the first quarter. BlackRock Inc. now owns 11,088,633 shares of the company’s stock valued at $656,668,000 after buying an additional 10,752,554 shares during the period. Nordea Investment Management AB raised its position in shares of CarMax by 751.0% in the second quarter. Nordea Investment Management AB now owns 2,148,186 shares of the company’s stock valued at $135,465,000 after buying an additional 1,895,763 shares in the last quarter. Norges Bank bought a new position in shares of CarMax during the fourth quarter valued at $82,869,000. William Blair Investment Management LLC bought a new position in shares of CarMax during the first quarter valued at $47,370,000. Finally, Principal Financial Group Inc. raised its position in shares of CarMax by 8.3% in the second quarter. Principal Financial Group Inc. now owns 9,177,018 shares of the company’s stock valued at $578,702,000 after buying an additional 706,369 shares in the last quarter.
CarMax Company Profile
CarMax, Inc (CarMax) is a holding company. The Company is a retailer of used vehicles. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The Company’s CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF.
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