Analysts Set CarMax, Inc. (NYSE:KMX) Target Price at $41.73

Shares of CarMax, Inc. (NYSE:KMX) have earned an average recommendation of “Reduce” from the twenty brokerages that are currently covering the firm, Marketbeat.com reports. Five analysts have rated the stock with a sell recommendation, thirteen have issued a hold recommendation and two have assigned a buy recommendation to the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $46.1333.

KMX has been the topic of a number of recent analyst reports. Royal Bank Of Canada lifted their price objective on CarMax from $41.00 to $45.00 and gave the stock a “sector perform” rating in a research note on Thursday. Mizuho lifted their price objective on CarMax from $38.00 to $43.00 and gave the stock a “neutral” rating in a research note on Thursday. JPMorgan Chase & Co. lifted their price objective on CarMax from $37.00 to $38.00 and gave the stock an “underweight” rating in a research note on Thursday. UBS Group initiated coverage on CarMax in a research note on Wednesday, May 27th. They issued a “neutral” rating and a $42.00 price objective on the stock. Finally, Evercore set a $45.00 price target on CarMax in a research note on Friday, April 10th.

Hedge Funds Weigh In On CarMax

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC increased its stake in CarMax by 151.8% during the fourth quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock valued at $306,429,000 after acquiring an additional 4,780,903 shares during the period. SRS Investment Management LLC increased its stake in CarMax by 1,717.5% during the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock valued at $217,845,000 after acquiring an additional 5,327,603 shares during the period. Janus Henderson Group PLC increased its stake in CarMax by 1.1% during the first quarter. Janus Henderson Group PLC now owns 4,580,807 shares of the company’s stock valued at $190,471,000 after acquiring an additional 49,987 shares during the period. Dimensional Fund Advisors LP increased its stake in CarMax by 7.3% during the first quarter. Dimensional Fund Advisors LP now owns 4,275,663 shares of the company’s stock valued at $177,767,000 after acquiring an additional 289,768 shares during the period. Finally, Norges Bank bought a new position in CarMax during the fourth quarter valued at about $159,232,000.

More CarMax News

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Several analysts raised price targets and turned more constructive after CarMax reported better-than-expected results, citing signs of progress in sales growth, cost control, and customer experience under the new CEO. KMX Stock Recoups Earnings Day Losses – Analysts Pour Praise On New CarMax CEO’s Focus On Cost And Customer Experience
• Positive Sentiment: Stephens upgraded CarMax to overweight with a $66 target, and Mizuho lifted its target to $43, reflecting improved sentiment around the company’s Q1 beat and its new four-pillar strategy focused on pricing, digital simplification, cost discipline, and finance penetration. CarMax Analysts Boost Their Forecasts After Upbeat Q1 Results
• Positive Sentiment: The company beat Q1 earnings and revenue estimates on stronger wholesale and retail sales, plus lower SG&A costs, which reassured investors that operational reforms are starting to work. CarMax Q1 Earnings Beat Estimates on Revenue Growth, Cost Control
• Neutral Sentiment: Recent commentary from investors and analysts suggests the turnaround is taking shape, but many want more proof that margin pressure is easing and that the strategy can translate into sustained profit growth. CarMax’s Turnaround Is Taking Shape, Still Has Long Way to Go
• Negative Sentiment: Despite the strong revenue beat, CarMax’s profit and margins remain under pressure, which is keeping some investors cautious and limiting enthusiasm for the stock’s near-term upside. Why CarMax Stock Plummeted Today

CarMax Trading Down 0.2%

CarMax stock opened at $53.54 on Friday. The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.49 and a current ratio of 2.70. The business’s 50-day simple moving average is $42.75 and its 200-day simple moving average is $42.64. The firm has a market capitalization of $7.59 billion, a PE ratio of 34.99, a PEG ratio of 1.97 and a beta of 1.21. CarMax has a 52 week low of $30.26 and a 52 week high of $71.99.

CarMax (NYSE:KMX) last posted its quarterly earnings data on Wednesday, June 17th. The company reported $1.31 EPS for the quarter, topping analysts’ consensus estimates of $0.96 by $0.35. The business had revenue of $8.01 billion for the quarter, compared to analyst estimates of $7.42 billion. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The firm’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same period in the previous year, the company posted $1.38 earnings per share. Equities research analysts forecast that CarMax will post 2.52 earnings per share for the current year.

About CarMax

CarMax (NYSE: KMX) is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company’s inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax’s retail locations or browse the company’s online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.