Analysts Set CarMax, Inc. (NYSE:KMX) Target Price at $85.17

Shares of CarMax, Inc. (NYSE:KMX) have received a consensus recommendation of “Hold” from the fourteen brokerages that are currently covering the stock, Marketbeat Ratings reports. Three investment analysts have rated the stock with a sell recommendation, five have issued a hold recommendation and six have assigned a buy recommendation to the company. The average 1-year target price among brokers that have covered the stock in the last year is $85.17.

A number of brokerages recently weighed in on KMX. Truist Financial increased their price objective on shares of CarMax from $72.00 to $88.00 and gave the company a “hold” rating in a research report on Friday, December 20th. Stephens initiated coverage on CarMax in a report on Thursday, December 5th. They set an “equal weight” rating and a $86.00 price target on the stock. JPMorgan Chase & Co. lifted their price objective on CarMax from $70.00 to $72.00 and gave the stock an “underweight” rating in a report on Friday, December 20th. Needham & Company LLC increased their target price on CarMax from $90.00 to $98.00 and gave the company a “buy” rating in a report on Friday, December 20th. Finally, Royal Bank of Canada raised their target price on CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a research report on Thursday, December 19th.

Insider Activity at CarMax

In other CarMax news, EVP Mohammad Shamim sold 10,000 shares of the firm’s stock in a transaction dated Monday, December 23rd. The stock was sold at an average price of $83.77, for a total transaction of $837,700.00. Following the sale, the executive vice president now directly owns 11,738 shares of the company’s stock, valued at $983,292.26. This trade represents a 46.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO William D. Nash sold 120,513 shares of the company’s stock in a transaction dated Monday, December 23rd. The stock was sold at an average price of $83.24, for a total value of $10,031,502.12. Following the completion of the transaction, the chief executive officer now directly owns 181,683 shares of the company’s stock, valued at approximately $15,123,292.92. This trade represents a 39.88 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 228,744 shares of company stock worth $18,990,227. 1.66% of the stock is owned by company insiders.

Institutional Trading of CarMax

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Quarry LP raised its position in shares of CarMax by 78.6% during the second quarter. Quarry LP now owns 418 shares of the company’s stock valued at $31,000 after buying an additional 184 shares during the last quarter. Catalyst Capital Advisors LLC purchased a new position in CarMax during the third quarter valued at $32,000. True Wealth Design LLC grew its stake in CarMax by 4,844.4% during the third quarter. True Wealth Design LLC now owns 445 shares of the company’s stock valued at $34,000 after acquiring an additional 436 shares in the last quarter. Studio Investment Management LLC increased its holdings in CarMax by 176.7% in the 2nd quarter. Studio Investment Management LLC now owns 523 shares of the company’s stock valued at $38,000 after acquiring an additional 334 shares during the last quarter. Finally, Larson Financial Group LLC lifted its stake in CarMax by 91.9% in the 3rd quarter. Larson Financial Group LLC now owns 737 shares of the company’s stock worth $57,000 after purchasing an additional 353 shares in the last quarter.

CarMax Stock Performance

KMX stock opened at $81.88 on Friday. CarMax has a 12-month low of $65.83 and a 12-month high of $91.25. The stock’s 50 day simple moving average is $81.53 and its 200 day simple moving average is $78.78. The company has a current ratio of 2.25, a quick ratio of 0.68 and a debt-to-equity ratio of 2.93. The stock has a market capitalization of $12.69 billion, a PE ratio of 30.78, a price-to-earnings-growth ratio of 1.74 and a beta of 1.71.

CarMax (NYSE:KMX) last issued its earnings results on Thursday, December 19th. The company reported $0.81 earnings per share for the quarter, topping analysts’ consensus estimates of $0.62 by $0.19. The business had revenue of $6.22 billion during the quarter, compared to analyst estimates of $6.05 billion. CarMax had a return on equity of 6.83% and a net margin of 1.61%. CarMax’s revenue was up 1.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.52 EPS. As a group, research analysts forecast that CarMax will post 3.01 earnings per share for the current fiscal year.

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.