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 report released on Thursday morning. They currently have $59.00 price target on the stock.
According to Zacks, “CarMax posted a year over year increase in adjusted earnings per share in second-quarter fiscal 2017. Earnings per share were in line with the Zacks Consensus Estimate. Revenues increased year over year but missed the Zacks Consensus Estimate. The company’s focus on the used-vehicle market and aggressive store expansion should help it outperform peers. Additionally, CarMax tries to enhance shareholder value through share repurchases. However, weaknesses in other sales and revenues as well as the CAF business remain concerns. CarMax has also been incurring significant cash outflows from operations.”
Several other equities research analysts also recently issued reports on KMX. Buckingham Research reiterated a buy rating and issued a $60.00 target price on shares of CarMax in a research note on Tuesday, June 21st. Deutsche Bank AG raised their target price on shares of CarMax from $65.00 to $66.00 and gave the company a hold rating in a research note on Thursday, September 22nd. Robert W. Baird raised their target price on shares of CarMax from $58.00 to $64.00 and gave the company a neutral rating in a research note on Wednesday, September 7th. Oppenheimer Holdings Inc. reiterated a buy rating on shares of CarMax in a research note on Wednesday, June 22nd. Finally, Wedbush raised their target price on shares of CarMax from $44.00 to $55.00 and gave the company a neutral rating in a research note on Thursday, August 18th. One research analyst has rated the stock with a sell rating, nine have issued a hold rating and seven have assigned a buy rating to the stock. The company has an average rating of Hold and a consensus target price of $62.01.
CarMax (NYSE:KMX) traded down 1.06% during midday trading on Thursday, reaching $52.22. The company’s stock had a trading volume of 591,145 shares. The firm has a market cap of $9.98 billion, a P/E ratio of 16.98 and a beta of 1.42. The firm has a 50 day moving average price of $56.53 and a 200-day moving average price of $53.74. CarMax has a 52 week low of $41.25 and a 52 week high of $60.81.
CarMax (NYSE:KMX) last posted its quarterly earnings data on Wednesday, September 21st. The company reported $0.88 EPS for the quarter, hitting the Zacks’ consensus estimate of $0.88. CarMax had a net margin of 3.95% and a return on equity of 20.92%. The company earned $4 billion during the quarter, compared to the consensus estimate of $4.11 billion. During the same period in the prior year, the business posted $0.79 EPS. The company’s quarterly revenue was up 2.9% on a year-over-year basis. On average, analysts forecast that CarMax will post $3.28 earnings per share for the current fiscal year.
In other CarMax news, CEO Thomas J. Folliard sold 271,435 shares of the company’s stock in a transaction dated Tuesday, July 19th. The stock was sold at an average price of $55.39, for a total transaction of $15,034,784.65. Following the completion of the sale, the chief executive officer now directly owns 758,517 shares in the company, valued at $42,014,256.63. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Eric M. Margolin sold 12,639 shares of the company’s stock in a transaction dated Monday, August 15th. The stock was sold at an average price of $60.21, for a total value of $760,994.19. Following the sale, the executive vice president now owns 38,303 shares of the company’s stock, valued at $2,306,223.63. The disclosure for this sale can be found here. Corporate insiders own 1.70% of the company’s stock.
Large investors have recently made changes to their positions in the company. World Asset Management Inc raised its stake in CarMax by 0.3% in the second quarter. World Asset Management Inc now owns 19,322 shares of the company’s stock worth $947,000 after buying an additional 59 shares during the period. Eqis Capital Management Inc. increased its position in shares of CarMax by 1.2% in the third quarter. Eqis Capital Management Inc. now owns 7,475 shares of the company’s stock worth $399,000 after buying an additional 92 shares in the last quarter. Gagnon Securities LLC increased its position in shares of CarMax by 0.4% in the second quarter. Gagnon Securities LLC now owns 24,875 shares of the company’s stock worth $1,220,000 after buying an additional 98 shares in the last quarter. Utah Retirement Systems increased its position in shares of CarMax by 0.3% in the second quarter. Utah Retirement Systems now owns 35,199 shares of the company’s stock worth $1,726,000 after buying an additional 100 shares in the last quarter. Finally, Sumitomo Mitsui Asset Management Company LTD increased its position in shares of CarMax by 1.0% in the second quarter. Sumitomo Mitsui Asset Management Company LTD now owns 15,596 shares of the company’s stock worth $764,000 after buying an additional 150 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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