Zacks Investment Research upgraded shares of CarMax Inc. (NYSE:KMX) from a hold rating to a buy rating in a research note issued to investors on Thursday. Zacks Investment Research currently has $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.”
A number of other research firms have also recently issued reports on KMX. Vetr cut CarMax from a buy rating to a hold rating and set a $57.52 price objective for the company. in a research report on Monday, September 12th. Wedbush reaffirmed a hold rating and issued a $44.00 price target on shares of CarMax in a research report on Thursday, June 16th. Goldman Sachs Group Inc. set a $63.00 price target on CarMax and gave the stock a buy rating in a research report on Monday, September 19th. Robert W. Baird reaffirmed a neutral rating and issued a $58.00 price target (down previously from $60.00) on shares of CarMax in a research report on Wednesday, June 22nd. Finally, Susquehanna initiated coverage on CarMax in a research report on Thursday, August 25th. They issued a positive rating and a $70.00 price target for the company. One research analyst has rated the stock with a sell rating, nine have issued a hold rating and seven have given a buy rating to the company’s stock. CarMax has a consensus rating of Hold and a consensus price target of $62.01.
CarMax (NYSE:KMX) traded down 1.06% on Thursday, reaching $52.22. The company’s stock had a trading volume of 591,145 shares. CarMax has a 52 week low of $41.25 and a 52 week high of $60.81. The stock’s 50 day moving average is $56.53 and its 200-day moving average is $53.74. The firm has a market capitalization of $9.98 billion, a PE ratio of 16.98 and a beta of 1.42.
CarMax (NYSE:KMX) last released its quarterly earnings data on Wednesday, September 21st. The company reported $0.88 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.88. The firm earned $4 billion during the quarter, compared to analysts’ expectations of $4.11 billion. CarMax had a return on equity of 20.92% and a net margin of 3.95%. The business’s revenue for the quarter was up 2.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.79 earnings per share. Analysts predict that CarMax will post $3.28 EPS for the current year.
In related news, EVP Eric M. Margolin sold 2,000 shares of the business’s stock in a transaction on Monday, July 11th. The shares were sold at an average price of $52.95, for a total value of $105,900.00. Following the transaction, the executive vice president now owns 32,303 shares in the company, valued at $1,710,443.85. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, EVP Eric M. Margolin sold 12,639 shares of the company’s stock in a transaction dated Monday, August 15th. The shares were sold at an average price of $60.21, for a total transaction of $760,994.19. Following the transaction, the executive vice president now owns 38,303 shares in the company, valued at approximately $2,306,223.63. The disclosure for this sale can be found here. 1.70% of the stock is currently owned by corporate insiders.
Institutional investors have recently made changes to their positions in the stock. Sun Life Financial INC bought a new position in shares of CarMax during the first quarter valued at $94,024,000. Canada Pension Plan Investment Board raised its position in shares of CarMax by 52.9% in the first quarter. Canada Pension Plan Investment Board now owns 2,600 shares of the company’s stock valued at $133,000 after buying an additional 900 shares in the last quarter. IFP Advisors Inc raised its position in shares of CarMax by 9.8% in the first quarter. IFP Advisors Inc now owns 2,820 shares of the company’s stock valued at $144,000 after buying an additional 251 shares in the last quarter. Mizuho Asset Management Co. Ltd. raised its position in shares of CarMax by 91.2% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 3,086 shares of the company’s stock valued at $151,000 after buying an additional 1,472 shares in the last quarter. Finally, Pacer Advisors Inc. raised its position in shares of CarMax by 5.4% in the second quarter. Pacer Advisors Inc. now owns 3,453 shares of the company’s stock valued at $169,000 after buying an additional 176 shares in the last quarter.
CarMax Company Profile
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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