Royal Bank of Canada Issues Positive Forecast for CarMax (NYSE:KMX) Stock Price

CarMax (NYSE:KMX) had its price objective hoisted by equities researchers at Royal Bank of Canada from $92.00 to $99.00 in a report issued on Thursday, MarketBeat Ratings reports. The firm currently has an “overweight” rating on the stock. Royal Bank of Canada’s price target would indicate a potential upside of 17.48% from the stock’s previous close.

A number of other research firms have also recently commented on KMX. Wedbush reiterated an “outperform” rating and set a $95.00 target price on shares of CarMax in a research report on Wednesday, October 16th. BNP Paribas raised CarMax to a “strong sell” rating in a research report on Friday, September 27th. Oppenheimer reissued an “outperform” rating and issued a $105.00 price objective on shares of CarMax in a report on Friday, October 4th. Stephens started coverage on shares of CarMax in a report on Thursday, December 5th. They issued an “equal weight” rating and a $86.00 target price on the stock. Finally, Truist Financial raised their price objective on shares of CarMax from $70.00 to $75.00 and gave the stock a “hold” rating in a research report on Monday, September 23rd. Three equities research analysts have rated the stock with a sell rating, six have given a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $85.17.

CarMax Stock Performance

Shares of CarMax stock opened at $84.27 on Thursday. The company has a quick ratio of 0.68, a current ratio of 2.25 and a debt-to-equity ratio of 2.93. CarMax has a 52 week low of $65.83 and a 52 week high of $91.25. The firm’s 50 day moving average is $78.77 and its two-hundred day moving average is $77.55. The firm has a market capitalization of $13.06 billion, a P/E ratio of 31.68, a P/E/G ratio of 1.76 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 (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.19. CarMax had a net margin of 1.61% and a return on equity of 6.83%. The business had revenue of $6.22 billion during the quarter, compared to analysts’ expectations of $6.05 billion. During the same quarter in the prior year, the business posted $0.52 EPS. The company’s revenue for the quarter was up 1.2% on a year-over-year basis. Research analysts forecast that CarMax will post 3.01 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Oddo BHF Asset Management Sas acquired a new position in CarMax during the 3rd quarter worth approximately $2,229,000. Franklin Resources Inc. lifted its holdings in shares of CarMax by 53.3% in the 3rd quarter. Franklin Resources Inc. now owns 27,362 shares of the company’s stock valued at $1,999,000 after buying an additional 9,509 shares during the period. Tidal Investments LLC boosted its stake in shares of CarMax by 141.8% in the third quarter. Tidal Investments LLC now owns 13,019 shares of the company’s stock valued at $1,007,000 after buying an additional 7,635 shares in the last quarter. Wilmington Savings Fund Society FSB acquired a new position in CarMax during the third quarter worth $351,000. Finally, World Investment Advisors LLC purchased a new position in CarMax in the third quarter worth $6,942,000.

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.