Wall Street Zen Upgrades CarMax (NYSE:KMX) to “Hold”

CarMax (NYSE:KMX) was upgraded by analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a note issued to investors on Sunday.

A number of other research firms have also recently issued reports on KMX. Robert W. Baird boosted their price objective on shares of CarMax from $44.00 to $48.00 and gave the company an “outperform” rating in a research report on Wednesday, February 18th. Wedbush cut their target price on CarMax from $40.00 to $36.00 and set a “neutral” rating on the stock in a research note on Friday, December 19th. Truist Financial upped their price target on CarMax from $35.00 to $37.00 and gave the company a “hold” rating in a research report on Thursday, December 18th. Evercore set a $42.00 price objective on CarMax in a report on Tuesday, February 10th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of CarMax in a research note on Friday, January 9th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twelve have issued a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat.com, CarMax currently has an average rating of “Reduce” and a consensus target price of $39.21.

CarMax Stock Performance

Shares of KMX stock opened at $42.34 on Friday. The company has a market capitalization of $6.00 billion, a P/E ratio of 13.97, a PEG ratio of 1.06 and a beta of 1.35. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $84.49. The company has a debt-to-equity ratio of 2.74, a quick ratio of 0.51 and a current ratio of 1.99. The stock has a 50 day moving average price of $43.54 and a two-hundred day moving average price of $46.06.

CarMax (NYSE:KMX) last issued its earnings results on Thursday, December 18th. The company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.31 by $0.12. CarMax had a net margin of 1.77% and a return on equity of 7.72%. The firm had revenue of $5.79 billion for the quarter, compared to analysts’ expectations of $5.66 billion. During the same quarter last year, the business earned $0.81 earnings per share. The business’s revenue was down 6.9% on a year-over-year basis. Analysts expect that CarMax will post 3.23 earnings per share for the current year.

Institutional Investors Weigh In On CarMax

Several hedge funds have recently made changes to their positions in the company. Y Intercept Hong Kong Ltd purchased a new position in CarMax during the second quarter valued at approximately $5,758,000. Hantz Financial Services Inc. raised its position in shares of CarMax by 45.3% during the 2nd quarter. Hantz Financial Services Inc. now owns 191,827 shares of the company’s stock valued at $12,893,000 after purchasing an additional 59,840 shares during the period. Fox Run Management L.L.C. purchased a new position in shares of CarMax during the 2nd quarter valued at $1,887,000. True North Advisors LLC boosted its holdings in CarMax by 66.6% in the 3rd quarter. True North Advisors LLC now owns 123,742 shares of the company’s stock worth $5,552,000 after buying an additional 49,450 shares during the period. Finally, AlphaQuest LLC increased its stake in CarMax by 461.3% in the 2nd quarter. AlphaQuest LLC now owns 7,174 shares of the company’s stock worth $482,000 after buying an additional 5,896 shares in the last quarter.

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.