Royal Bank of Canada Raises CarMax (NYSE:KMX) Price Target to $82.00

CarMax (NYSE:KMX) had its price objective hoisted by Royal Bank of Canada from $75.00 to $82.00 in a research note released on Friday morning, Benzinga reports. Royal Bank of Canada currently has an outperform rating on the stock.

KMX has been the subject of a number of other reports. Wedbush reaffirmed an outperform rating and set a $95.00 price target on shares of CarMax in a report on Tuesday, September 17th. Truist Financial raised their price objective on shares of CarMax from $70.00 to $75.00 and gave the stock a hold rating in a report on Monday, September 23rd. Oppenheimer reissued an outperform rating and set a $105.00 price objective on shares of CarMax in a report on Monday, June 24th. Morgan Stanley reissued an overweight rating and set a $80.00 price objective on shares of CarMax in a report on Friday, June 21st. Finally, JPMorgan Chase & Co. raised their price objective on shares of CarMax from $55.00 to $65.00 and gave the stock an underweight rating in a report on Thursday, September 19th. Three analysts have rated the stock with a sell rating, four have assigned a hold rating and six have given a buy rating to the company’s stock. According to data from MarketBeat.com, CarMax presently has a consensus rating of Hold and an average price target of $79.73.

CarMax Price Performance

KMX opened at $77.32 on Friday. The company has a fifty day simple moving average of $79.71 and a 200 day simple moving average of $76.28. The firm has a market cap of $12.07 billion, a price-to-earnings ratio of 30.20, a PEG ratio of 1.56 and a beta of 1.69. CarMax has a twelve month low of $59.66 and a twelve month high of $88.22. The company has a current ratio of 2.50, a quick ratio of 0.60 and a debt-to-equity ratio of 2.95.

CarMax (NYSE:KMX) last released its quarterly earnings results on Thursday, September 26th. The company reported $0.85 earnings per share for the quarter, missing analysts’ consensus estimates of $0.86 by ($0.01). The firm had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.83 billion. CarMax had a net margin of 1.55% and a return on equity of 6.64%. CarMax’s revenue for the quarter was down .9% on a year-over-year basis. During the same period in the previous year, the business posted $0.75 earnings per share. Equities research analysts expect that CarMax will post 2.99 EPS for the current fiscal year.

Insider Activity

In other news, EVP Mohammad Shamim sold 25,000 shares of CarMax stock in a transaction dated Friday, July 26th. The shares were sold at an average price of $82.26, for a total value of $2,056,500.00. Following the completion of the transaction, the executive vice president now directly owns 11,738 shares of the company’s stock, valued at approximately $965,567.88. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In related news, CEO William D. Nash sold 120,000 shares of CarMax stock in a transaction dated Thursday, July 11th. The shares were sold at an average price of $79.62, for a total value of $9,554,400.00. Following the sale, the chief executive officer now directly owns 181,683 shares in the company, valued at approximately $14,465,600.46. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, EVP Mohammad Shamim sold 25,000 shares of CarMax stock in a transaction dated Friday, July 26th. The shares were sold at an average price of $82.26, for a total transaction of $2,056,500.00. Following the completion of the sale, the executive vice president now owns 11,738 shares in the company, valued at $965,567.88. The disclosure for this sale can be found here. In the last three months, insiders sold 184,012 shares of company stock valued at $14,803,843. Company insiders own 1.66% of the company’s stock.

Institutional Trading of CarMax

Several hedge funds have recently bought and sold shares of the company. First Community Trust NA bought a new stake in shares of CarMax during the 2nd quarter worth about $29,000. Quarry LP raised its position in shares of CarMax by 78.6% during the 2nd quarter. Quarry LP now owns 418 shares of the company’s stock worth $31,000 after buying an additional 184 shares in the last quarter. Blue Trust Inc. raised its position in shares of CarMax by 134.1% during the 2nd quarter. Blue Trust Inc. now owns 501 shares of the company’s stock worth $37,000 after buying an additional 287 shares in the last quarter. Studio Investment Management LLC raised its position in shares of CarMax by 176.7% during the 2nd quarter. Studio Investment Management LLC now owns 523 shares of the company’s stock worth $38,000 after buying an additional 334 shares in the last quarter. Finally, Headlands Technologies LLC bought a new stake in shares of CarMax during the 1st quarter worth about $55,000.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.