CarMax’s (KMX) “Neutral” Rating Reiterated at Wedbush

Posted by George Bondi on Mar 19th, 2023

Wedbush reiterated their neutral rating on shares of CarMax (NYSE:KMX – Get Rating) in a research note released on Thursday morning, Benzinga reports. Wedbush currently has a $55.00 target price on the stock. Wedbush also issued estimates for CarMax’s FY2023 earnings at $2.78 EPS, Q3 2024 earnings at $0.26 EPS, Q4 2024 earnings at $0.24 EPS and FY2026 earnings at $3.06 EPS.

KMX has been the subject of several other reports. Oppenheimer reduced their target price on CarMax from $100.00 to $75.00 and set an outperform rating for the company in a research note on Friday, December 23rd. Truist Financial began coverage on CarMax in a research note on Thursday, February 23rd. They set a hold rating and a $66.00 target price for the company. StockNews.com began coverage on CarMax in a research note on Thursday. They issued a sell rating for the company. JPMorgan Chase & Co. reduced their price target on CarMax from $60.00 to $55.00 and set an underweight rating for the company in a research note on Friday, March 10th. Finally, Stephens reduced their price target on CarMax from $64.00 to $53.00 in a research note on Friday, December 23rd. Three analysts have rated the stock with a sell rating, six have issued a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of Hold and an average target price of $62.50.

CarMax Stock Down 3.8 %

KMX stock opened at $56.26 on Thursday. The company has a quick ratio of 0.81, a current ratio of 2.57 and a debt-to-equity ratio of 3.21. CarMax has a twelve month low of $52.10 and a twelve month high of $106.24. The business has a 50 day moving average price of $68.87 and a two-hundred day moving average price of $68.92. The company has a market cap of $8.89 billion, a price-to-earnings ratio of 15.76, a P/E/G ratio of 7.77 and a beta of 1.43.

CarMax (NYSE:KMX – Get Rating) last issued its earnings results on Thursday, December 22nd. The company reported $0.24 EPS for the quarter, missing the consensus estimate of $0.58 by ($0.34). CarMax had a return on equity of 10.69% and a net margin of 1.82%. The business had revenue of $6.51 billion for the quarter, compared to the consensus estimate of $7.18 billion. During the same quarter in the prior year, the firm posted $1.63 earnings per share. The business’s revenue was down 23.7% compared to the same quarter last year. Analysts anticipate that CarMax will post 2.78 EPS for the current fiscal year.

Insider Buying and Selling at CarMax

In related news, President & CEO William D. Nash acquired 8,220 shares of the company’s stock in a transaction on Friday, December 30th. The stock was purchased at an average cost of $60.98 per share, with a total value of $501,255.60. Following the acquisition, the insider now directly owns 165,128 shares of the company’s stock, valued at $10,069,505.44. The acquisition was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 1.65% of the company’s stock.

Hedge Funds Weigh In On CarMax

Several hedge funds and other institutional investors have recently added to or reduced their stakes in KMX. CENTRAL TRUST Co raised its holdings in CarMax by 100.0% in the 3rd quarter. CENTRAL TRUST Co now owns 400 shares of the company’s stock valued at $26,000 after acquiring an additional 200 shares in the last quarter. Ronald Blue Trust Inc. acquired a new position in shares of CarMax during the 2nd quarter worth $30,000. General Partner Inc. acquired a new position in shares of CarMax during the 4th quarter worth $31,000. Whittier Trust Co. raised its holdings in shares of CarMax by 72.5% during the 3rd quarter. Whittier Trust Co. now owns 509 shares of the company’s stock worth $34,000 after buying an additional 214 shares in the last quarter. Finally, Covington Capital Management acquired a new position in shares of CarMax during the 3rd quarter worth $39,000.

CarMax Company Profile

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CarMax, Inc is a holding company, which engages in the retail of used vehicles and wholesale of vehicle auction operators. It operates through the CarMax Sales Operations and CarMax Auto Finance (CAF) segments. The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations.