Zacks Investment Research upgraded shares of CarMax (NYSE:KMX) from a hold rating to a buy rating in a research report report published on Monday morning, Zacks.com reports. They currently have $86.00 price target on the stock.

According to Zacks, “CarMax’s fiscal 2020 earnings estimates have been moving up of late. In the fourth quarter of fiscal 2019, the company’s revenues missed the Zacks Consensus Estimate while earnings surpassed the same. Compared with the year-ago quarter, the figures witnessed an annual increase. Strong market presence through stores and robust demand for used vehicles are the major drivers of year-over-year growth. Apart from store openings in new and existing markets, it is expanding presence through digital platforms. Also, strong balance sheet aids CarMax in rewarding shareholders through share buybacks and investment in technology. However, an ample supply of off-lease used vehicles, resulting in lowered prices, along with rise in SG&A expenses, is a concern.”

KMX has been the subject of several other research reports. Stephens raised shares of CarMax from an equal weight rating to an overweight rating and boosted their target price for the stock from $83.00 to $93.00 in a research report on Monday, April 1st. Morgan Stanley boosted their price objective on shares of CarMax from $89.00 to $93.00 and gave the company an overweight rating in a research report on Wednesday, April 17th. Wedbush downgraded shares of CarMax from an outperform rating to a neutral rating and lowered their price objective for the company from $70.00 to $60.00 in a research report on Friday, January 18th. ValuEngine downgraded shares of CarMax from a hold rating to a sell rating in a research report on Tuesday, January 29th. Finally, Guggenheim raised shares of CarMax from a neutral rating to a buy rating in a research report on Monday, December 24th. Two investment analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. CarMax has an average rating of Buy and a consensus target price of $82.36.

KMX opened at $75.70 on Monday. The stock has a market capitalization of $13.10 billion, a PE ratio of 15.80, a P/E/G ratio of 1.23 and a beta of 1.28. CarMax has a 1-year low of $55.24 and a 1-year high of $81.67. The company has a quick ratio of 0.53, a current ratio of 2.45 and a debt-to-equity ratio of 4.11.

CarMax (NYSE:KMX) last released its earnings results on Friday, March 29th. The company reported $1.13 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.04 by $0.09. The company had revenue of $4.32 billion during the quarter, compared to the consensus estimate of $4.36 billion. CarMax had a net margin of 4.64% and a return on equity of 24.67%. The company’s revenue was up 5.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.88 EPS. On average, equities analysts expect that CarMax will post 5.13 EPS for the current year.

In other CarMax news, SVP Diane L. Cafritz sold 3,484 shares of the business’s stock in a transaction dated Wednesday, April 3rd. The shares were sold at an average price of $71.04, for a total transaction of $247,503.36. Following the completion of the transaction, the senior vice president now directly owns 11,331 shares of the company’s stock, valued at approximately $804,954.24. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Thomas J. Folliard sold 360,006 shares of the business’s stock in a transaction dated Wednesday, April 3rd. The shares were sold at an average price of $71.18, for a total transaction of $25,625,227.08. Following the transaction, the director now directly owns 511,879 shares of the company’s stock, valued at $36,435,547.22. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 383,655 shares of company stock valued at $27,437,638. Insiders own 1.97% of the company’s stock.

A number of institutional investors have recently bought and sold shares of KMX. Norges Bank acquired a new position in CarMax during the 4th quarter valued at about $83,206,000. Makaira Partners LLC acquired a new position in CarMax during the 4th quarter valued at about $46,107,000. Squarepoint Ops LLC acquired a new position in CarMax during the 4th quarter valued at about $23,619,000. Two Sigma Advisers LP acquired a new position in CarMax during the 4th quarter valued at about $17,788,000. Finally, Dimensional Fund Advisors LP boosted its stake in CarMax by 20.8% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,504,891 shares of the company’s stock valued at $94,404,000 after purchasing an additional 258,689 shares during the period.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles; vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions; and extended protection plans to customers at the time of sale.

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