Morgan Stanley Cuts CarMax (NYSE:KMX) Price Target to $56.00

CarMax (NYSE:KMX) had its target price reduced by Morgan Stanley from $80.00 to $56.00 in a research report report published on Wednesday morning,Benzinga reports. They currently have an overweight rating on the stock.

A number of other analysts have also issued reports on KMX. Seaport Res Ptn lowered CarMax from a “strong-buy” rating to a “hold” rating in a research note on Sunday, September 28th. Stephens decreased their price target on CarMax from $74.00 to $53.00 and set an “overweight” rating on the stock in a research note on Friday, September 26th. Robert W. Baird decreased their price target on CarMax from $90.00 to $60.00 and set an “outperform” rating on the stock in a research note on Friday, September 26th. Benchmark began coverage on CarMax in a research note on Thursday, July 17th. They issued a “buy” rating and a $75.00 price target on the stock. Finally, Wedbush lowered CarMax from an “outperform” rating to a “neutral” rating and decreased their target price for the stock from $84.00 to $54.00 in a research note on Thursday, September 25th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $56.58.

CarMax Trading Up 0.8%

CarMax stock opened at $46.42 on Wednesday. The company has a quick ratio of 1.06, a current ratio of 2.46 and a debt-to-equity ratio of 2.87. CarMax has a 52 week low of $42.75 and a 52 week high of $91.25. The company has a market capitalization of $6.82 billion, a price-to-earnings ratio of 13.61, a price-to-earnings-growth ratio of 0.87 and a beta of 1.27. The stock has a 50-day moving average price of $56.99 and a 200 day moving average price of $63.94.

CarMax (NYSE:KMX) last announced its quarterly earnings results on Thursday, September 25th. The company reported $0.64 earnings per share for the quarter, missing the consensus estimate of $1.03 by ($0.39). The company had revenue of $6.59 billion for the quarter, compared to analysts’ expectations of $7.07 billion. CarMax had a net margin of 1.98% and a return on equity of 8.51%. The firm’s revenue was down 6.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.85 earnings per share. Sell-side analysts anticipate that CarMax will post 3.23 EPS for the current year.

Institutional Trading of CarMax

A number of hedge funds have recently added to or reduced their stakes in KMX. Norges Bank acquired a new stake in shares of CarMax in the 2nd quarter valued at approximately $208,144,000. AQR Capital Management LLC lifted its holdings in shares of CarMax by 195.3% in the 2nd quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company’s stock valued at $298,107,000 after buying an additional 2,947,996 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in shares of CarMax by 1,410.5% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 2,028,718 shares of the company’s stock valued at $136,350,000 after buying an additional 1,894,408 shares during the period. The Manufacturers Life Insurance Company lifted its holdings in shares of CarMax by 795.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,846,406 shares of the company’s stock valued at $124,097,000 after buying an additional 1,640,219 shares during the period. Finally, Fuller & Thaler Asset Management Inc. lifted its holdings in shares of CarMax by 626.1% in the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 903,024 shares of the company’s stock valued at $70,364,000 after buying an additional 778,652 shares during the period.

About CarMax

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.