CarMax, Inc. (NYSE:KMX) Given Consensus Rating of “Hold” by Brokerages

CarMax, Inc. (NYSE:KMX) has earned a consensus rating of “Hold” from the fourteen ratings firms that are currently covering the firm, Marketbeat.com reports. Three investment analysts have rated the stock with a sell recommendation, five have given a hold recommendation and six have given a buy recommendation to the company. The average 12 month price target among brokers that have covered the stock in the last year is $85.17.

Several research firms have recently issued reports on KMX. Royal Bank of Canada boosted their price objective on shares of CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a report on Thursday, December 19th. Evercore ISI upped their price target on CarMax from $83.00 to $85.00 and gave the company a “market perform” rating in a report on Thursday, December 19th. BNP Paribas raised CarMax to a “strong sell” rating in a report on Friday, September 27th. Wedbush restated an “outperform” rating and set a $95.00 price objective on shares of CarMax in a research report on Wednesday, October 16th. Finally, JPMorgan Chase & Co. raised their target price on CarMax from $70.00 to $72.00 and gave the stock an “underweight” rating in a research report on Friday, December 20th.

Insider Activity at CarMax

In other news, CEO William D. Nash sold 120,513 shares of the company’s stock in a transaction that occurred on Monday, December 23rd. The shares were sold at an average price of $83.24, for a total transaction of $10,031,502.12. Following the transaction, the chief executive officer now directly owns 181,683 shares in the company, valued at approximately $15,123,292.92. This represents a 39.88 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Jon G. Daniels sold 30,245 shares of the stock in a transaction that occurred on Tuesday, December 24th. The shares were sold at an average price of $84.34, for a total transaction of $2,550,863.30. Following the sale, the senior vice president now directly owns 995 shares in the company, valued at $83,918.30. This trade represents a 96.81 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 241,589 shares of company stock valued at $20,042,746 in the last three months. Corporate insiders own 1.66% of the company’s stock.

Hedge Funds Weigh In On CarMax

Large investors have recently made changes to their positions in the company. Arete Wealth Advisors LLC increased its position in CarMax by 4.3% in the third quarter. Arete Wealth Advisors LLC now owns 3,438 shares of the company’s stock worth $266,000 after purchasing an additional 141 shares during the period. Northwestern Mutual Wealth Management Co. grew its position in shares of CarMax by 2.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 6,220 shares of the company’s stock worth $456,000 after buying an additional 142 shares during the period. Sompo Asset Management Co. Ltd. raised its stake in shares of CarMax by 1.6% during the third quarter. Sompo Asset Management Co. Ltd. now owns 10,602 shares of the company’s stock worth $820,000 after buying an additional 170 shares during the last quarter. Signaturefd LLC lifted its holdings in CarMax by 12.5% in the third quarter. Signaturefd LLC now owns 1,545 shares of the company’s stock valued at $120,000 after buying an additional 172 shares during the period. Finally, Quarry LP boosted its stake in CarMax by 78.6% in the second quarter. Quarry LP now owns 418 shares of the company’s stock valued at $31,000 after acquiring an additional 184 shares during the last quarter.

CarMax Price Performance

NYSE KMX opened at $78.46 on Friday. The stock has a market capitalization of $12.07 billion, a PE ratio of 29.50, a P/E/G ratio of 1.74 and a beta of 1.71. The stock has a 50-day simple moving average of $81.65 and a 200 day simple moving average of $78.87. The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.68 and a current ratio of 2.25. CarMax has a twelve month low of $65.83 and a twelve month high of $91.25.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Thursday, December 19th. The company reported $0.81 EPS for the quarter, topping analysts’ consensus estimates of $0.62 by $0.19. The company 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%. The company’s quarterly revenue was up 1.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.52 earnings per share. Research analysts anticipate that CarMax will post 3.01 EPS for the current 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.