Wall Street Zen Upgrades CarMax (NYSE:KMX) to Buy

CarMax (NYSE:KMX) was upgraded by investment analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Several other brokerages have also recently commented on KMX. Royal Bank Of Canada lifted their price target on shares of CarMax from $45.00 to $56.00 and gave the stock a “sector perform” rating in a research report on Wednesday, September 30th. Barclays boosted their price target on shares of CarMax from $61.00 to $67.00 and gave the stock an “equal weight” rating in a research note on Wednesday, September 30th. Mizuho increased their price objective on shares of CarMax from $38.00 to $43.00 and gave the company a “neutral” rating in a report on Thursday, June 18th. JPMorgan Chase & Co. raised their price objective on shares of CarMax from $60.00 to $70.00 and gave the company a “neutral” rating in a research note on Friday, September 18th. Finally, Bank of America raised their price objective on shares of CarMax from $45.00 to $50.00 and gave the company an “underperform” rating in a research note on Wednesday, September 30th. Two investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Reduce” and an average price target of $56.46.

CarMax Price Performance

Shares of KMX stock opened at $52.65 on Friday. The firm has a market cap of $7.47 billion, a price-to-earnings ratio of 25.68, a PEG ratio of 1.52 and a beta of 1.23. CarMax has a 12 month low of $30.26 and a 12 month high of $65.28. The company has a quick ratio of 0.57, a current ratio of 2.33 and a debt-to-equity ratio of 2.66. The stock has a 50-day moving average price of $58.96 and a 200 day moving average price of $50.91.

CarMax (NYSE:KMX) last released its earnings results on Tuesday, September 29th. The company reported $1.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.73 by $0.43. CarMax had a net margin of 1.06% and a return on equity of 7.76%. The company had revenue of $7.88 billion for the quarter, compared to the consensus estimate of $7.09 billion. During the same period in the prior year, the company posted $0.64 EPS. The company’s revenue was up 19.5% compared to the same quarter last year. Research analysts expect that CarMax will post 3.01 EPS for the current year.

Institutional Investors Weigh In On CarMax

A number of institutional investors and hedge funds have recently added to or reduced their stakes in KMX. SJS Investment Consulting Inc. grew its position in shares of CarMax by 42.6% during the 1st quarter. SJS Investment Consulting Inc. now owns 1,035 shares of the company’s stock worth $43,000 after buying an additional 309 shares during the period. Sequoia Financial Advisors LLC increased its stake in shares of CarMax by 5.1% in the 1st quarter. Sequoia Financial Advisors LLC now owns 6,460 shares of the company’s stock valued at $269,000 after acquiring an additional 311 shares during the last quarter. HF Advisory Group LLC increased its stake in shares of CarMax by 0.7% in the 1st quarter. HF Advisory Group LLC now owns 46,418 shares of the company’s stock valued at $1,930,000 after acquiring an additional 326 shares during the last quarter. Basecamp Wealth Advisors LLC raised its position in shares of CarMax by 105.8% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company’s stock valued at $26,000 after acquiring an additional 327 shares during the period. Finally, D.A. Davidson & CO. raised its position in shares of CarMax by 3.8% in the 1st quarter. D.A. Davidson & CO. now owns 13,180 shares of the company’s stock valued at $548,000 after acquiring an additional 484 shares during the period.

About CarMax

CarMax, Inc is a retailer of used vehicles operating in the United States. The company sells a broad selection of used cars, trucks and SUVs through its dealership network and online platform, offering customers the ability to research, purchase and arrange delivery for vehicles through an omnichannel shopping experience.

In addition to retail vehicle sales, CarMax provides vehicle financing through CarMax Auto Finance and offers customers access to extended protection products and related services.