CarMax (NYSE:KMX) Raised to “Outperform” at Evercore ISI

CarMax (NYSE:KMX) was upgraded by Evercore ISI from an “in-line” rating to an “outperform” rating in a research report issued to clients and investors on Thursday, MarketBeat Ratings reports. The brokerage presently has a $110.00 price objective on the stock, up from their prior price objective of $90.00. Evercore ISI’s price objective would suggest a potential upside of 29.05% from the company’s previous close.

A number of other equities research analysts have also recently commented on KMX. Wedbush restated an “outperform” rating and set a $95.00 target price on shares of CarMax in a research note on Wednesday, October 16th. Stephens initiated coverage on shares of CarMax in a research note on Thursday, December 5th. They set an “equal weight” rating and a $86.00 target price on the stock. JPMorgan Chase & Co. raised their target price on shares of CarMax from $70.00 to $72.00 and gave the stock an “underweight” rating in a research note on Friday, December 20th. StockNews.com upgraded shares of CarMax from a “sell” rating to a “hold” rating in a research note on Friday, December 20th. Finally, Truist Financial raised their target price on shares of CarMax from $72.00 to $88.00 and gave the stock a “hold” rating in a research note on Friday, December 20th. Three investment analysts have rated the stock with a sell rating, five have given a hold rating and seven have assigned a buy rating to the company. According to MarketBeat.com, CarMax currently has an average rating of “Hold” and a consensus target price of $87.50.

CarMax Price Performance

Shares of NYSE:KMX opened at $85.24 on Thursday. The firm’s 50 day moving average price is $83.11 and its 200-day moving average price is $79.68. CarMax has a twelve month low of $65.83 and a twelve month high of $91.25. The company has a quick ratio of 0.55, a current ratio of 2.30 and a debt-to-equity ratio of 2.92. The stock has a market capitalization of $13.11 billion, a PE ratio of 28.89, a price-to-earnings-growth ratio of 1.66 and a beta of 1.72.

CarMax (NYSE:KMX) last issued its quarterly earnings data on Thursday, December 19th. The company reported $0.81 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.19. CarMax had a net margin of 1.77% and a return on equity of 7.49%. The firm had revenue of $6.22 billion for the quarter, compared to analysts’ expectations of $6.05 billion. During the same quarter in the prior year, the business earned $0.52 EPS. The business’s quarterly revenue was up 1.2% on a year-over-year basis. Equities research analysts expect that CarMax will post 3.25 EPS for the current year.

Insider Activity at CarMax

In related news, CEO William D. Nash sold 120,513 shares of the firm’s stock in a transaction on Monday, December 23rd. The shares were 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Jon G. Daniels sold 10,000 shares of the firm’s stock in a transaction on Thursday, December 26th. The shares were sold at an average price of $85.30, for a total transaction of $853,000.00. Following the completion of the transaction, the senior vice president now directly owns 995 shares of the company’s stock, valued at approximately $84,873.50. This trade represents a 90.95 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 264,467 shares of company stock valued at $21,915,445. 1.66% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. First Hawaiian Bank purchased a new position in CarMax during the fourth quarter worth $273,000. World Investment Advisors LLC purchased a new position in CarMax during the third quarter worth $6,942,000. Sumitomo Mitsui Trust Group Inc. boosted its stake in CarMax by 3.2% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 351,361 shares of the company’s stock worth $27,188,000 after buying an additional 10,898 shares during the period. HF Advisory Group LLC boosted its stake in CarMax by 12.6% during the fourth quarter. HF Advisory Group LLC now owns 28,793 shares of the company’s stock worth $2,354,000 after buying an additional 3,222 shares during the period. Finally, Merit Financial Group LLC purchased a new position in CarMax during the fourth quarter worth $600,000.

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.