Wedbush Reiterates Outperform Rating for CarMax (NYSE:KMX)

CarMax (NYSE:KMX)‘s stock had its “outperform” rating reiterated by investment analysts at Wedbush in a report released on Tuesday, Benzinga reports. They presently have a $95.00 price objective on the stock. Wedbush’s price objective would indicate a potential upside of 20.19% from the company’s previous close.

Other research analysts also recently issued research reports about the stock. Evercore ISI upped their target price on shares of CarMax from $68.00 to $72.00 and gave the stock an “in-line” rating in a report on Tuesday, July 16th. Royal Bank of Canada lifted their price objective on shares of CarMax from $73.00 to $75.00 and gave the company an “outperform” rating in a research report on Monday, June 24th. Morgan Stanley reaffirmed an “overweight” rating and set a $80.00 target price on shares of CarMax in a research note on Friday, June 21st. Truist Financial increased their price objective on shares of CarMax from $66.00 to $70.00 and gave the company a “hold” rating in a report on Monday, June 24th. Finally, Argus raised CarMax to a “hold” rating in a report on Tuesday, June 25th. Three investment analysts have rated the stock with a sell rating, five have issued a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $76.25.

CarMax Stock Performance

NYSE:KMX opened at $79.04 on Tuesday. The stock has a 50-day simple moving average of $80.26 and a two-hundred day simple moving average of $76.53. The company has a debt-to-equity ratio of 2.95, a quick ratio of 0.60 and a current ratio of 2.50. CarMax has a 52-week low of $59.66 and a 52-week high of $88.22. The firm has a market capitalization of $12.34 billion, a PE ratio of 30.88, a P/E/G ratio of 1.53 and a beta of 1.69.

CarMax (NYSE:KMX) last released its earnings results on Friday, June 21st. The company reported $0.97 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.03. The company had revenue of $7.11 billion for the quarter, compared to analysts’ expectations of $7.16 billion. CarMax had a net margin of 1.55% and a return on equity of 6.64%. The firm’s revenue was down 7.5% compared to the same quarter last year. During the same quarter last year, the business earned $1.16 EPS. Analysts forecast that CarMax will post 2.99 EPS for the current year.

Insider Buying and Selling

In other CarMax news, EVP Mohammad Shamim sold 25,000 shares of the firm’s stock in a transaction dated Friday, July 26th. The shares were sold at an average price of $82.26, for a total value 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 sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In related news, EVP Mohammad Shamim sold 25,000 shares of the firm’s stock in a transaction dated Friday, July 26th. The shares were sold at an average price of $82.26, for a total value of $2,056,500.00. Following the transaction, the executive vice president now owns 11,738 shares of the company’s stock, valued at approximately $965,567.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, COO Charles Joseph Wilson sold 10,021 shares of the business’s stock in a transaction dated Tuesday, July 23rd. The shares were sold at an average price of $80.02, for a total transaction of $801,880.42. Following the completion of the sale, the chief operating officer now directly owns 15,609 shares of the company’s stock, valued at $1,249,032.18. The disclosure for this sale can be found here. In the last ninety days, insiders sold 185,243 shares of company stock valued at $14,893,042. Company insiders own 1.66% of the company’s stock.

Hedge Funds Weigh In On CarMax

Hedge funds and other institutional investors have recently made changes to their positions in the company. Gilbert & Cook Inc. grew its holdings in CarMax by 5.7% during the 4th quarter. Gilbert & Cook Inc. now owns 8,011 shares of the company’s stock worth $615,000 after acquiring an additional 431 shares in the last quarter. Beacon Pointe Advisors LLC lifted its stake in shares of CarMax by 8.8% during the 4th 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 during the last quarter. Kentucky Retirement Systems lifted its stake in shares of CarMax by 2.0% during the 4th quarter. Kentucky Retirement Systems now owns 12,695 shares of the company’s stock worth $974,000 after purchasing an additional 252 shares during the last quarter. Norges Bank bought a new stake in CarMax during the fourth 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.

About CarMax

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.