CarMax Inc (KMX) Upgraded to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of CarMax Inc (NYSE:KMX) from a hold rating to a buy rating in a research note released on Tuesday. They currently have $72.00 price target on the stock.
According to Zacks, “CarMax has outperformed the Zacks-categorized Retail/Wholesale-Auto Parts industry in the last three months. Lately, both the quarterly and the yearly earnings estimates are moving up. CarMax’s focus on the used-car market helps it to outperform the industry. The company is among the strongest operators in its peer group. Also, its aggressive store-expansion is expected to benefit the company. Moreover, share repurchases will boost shareholder returns. However, the average selling prices in used vehicle as well as wholesale vehicle segment has been declining. The increase in the supply of used vehicles is expected to further lower prices.”
A number of other research firms have also weighed in on KMX. Oppenheimer Holdings, Inc. reissued an outperform rating and issued a $72.00 price objective on shares of CarMax in a research report on Monday, March 13th. Wedbush raised shares of CarMax from a neutral rating to an outperform rating and increased their price objective for the stock from $60.00 to $70.00 in a research report on Thursday, May 18th. Susquehanna Bancshares Inc reissued a neutral rating and issued a $70.00 price objective (up from $66.00) on shares of CarMax in a research report on Thursday, June 22nd. Deutsche Bank AG reduced their price objective on shares of CarMax from $73.00 to $72.00 and set a buy rating on the stock in a research report on Thursday, April 6th. Finally, Royal Bank Of Canada reissued a market perform rating and issued a $63.00 price objective (down from $71.00) on shares of CarMax in a research report on Tuesday, July 4th. One research analyst has rated the stock with a sell rating, four have issued a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the company. CarMax presently has a consensus rating of Buy and an average target price of $69.00.
Shares of CarMax (NYSE KMX) traded up 0.83% on Tuesday, reaching $64.20. The company had a trading volume of 1,709,468 shares. The firm has a market capitalization of $11.76 billion, a price-to-earnings ratio of 18.44 and a beta of 1.34. The stock’s 50 day moving average is $62.19 and its 200 day moving average is $62.76. CarMax has a 52 week low of $47.50 and a 52 week high of $69.11.
CarMax (NYSE:KMX) last posted its quarterly earnings data on Wednesday, June 21st. The company reported $1.13 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.98 by $0.15. CarMax had a net margin of 4.07% and a return on equity of 21.72%. The company had revenue of $4.54 billion for the quarter, compared to analyst estimates of $4.46 billion. During the same period in the prior year, the company posted $0.90 EPS. The firm’s revenue for the quarter was up 10.1% on a year-over-year basis. On average, equities analysts anticipate that CarMax will post $3.70 EPS for the current year.
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In other news, EVP Eric M. Margolin sold 18,659 shares of the stock in a transaction that occurred on Monday, July 3rd. The shares were sold at an average price of $64.06, for a total transaction of $1,195,295.54. Following the transaction, the executive vice president now directly owns 47,163 shares in the company, valued at $3,021,261.78. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Thomas J. Folliard sold 50,000 shares of the stock in a transaction that occurred on Friday, June 23rd. The shares were sold at an average price of $61.41, for a total transaction of $3,070,500.00. Following the transaction, the director now owns 509,166 shares in the company, valued at $31,267,884.06. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 97,497 shares of company stock worth $6,103,933. Insiders own 1.90% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in KMX. First Bank & Trust increased its position in CarMax by 7.1% in the first quarter. First Bank & Trust now owns 2,077 shares of the company’s stock worth $123,000 after buying an additional 138 shares in the last quarter. Quantitative Systematic Strategies LLC increased its position in CarMax by 35.5% in the first quarter. Quantitative Systematic Strategies LLC now owns 35,213 shares of the company’s stock worth $2,085,000 after buying an additional 9,221 shares in the last quarter. PNC Financial Services Group Inc. increased its position in CarMax by 6.2% in the first quarter. PNC Financial Services Group Inc. now owns 193,635 shares of the company’s stock worth $11,467,000 after buying an additional 11,352 shares in the last quarter. Legal & General Group Plc increased its position in CarMax by 2.6% in the first quarter. Legal & General Group Plc now owns 907,143 shares of the company’s stock worth $53,722,000 after buying an additional 23,085 shares in the last quarter. Finally, Mn Services Vermogensbeheer B.V. increased its position in CarMax by 2.6% in the first quarter. Mn Services Vermogensbeheer B.V. now owns 5,076 shares of the company’s stock worth $281,000 after buying an additional 131 shares in the last quarter.
CarMax, Inc (CarMax) is a holding company. The Company is a retailer of used vehicles. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The Company’s CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF.
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