Wedbush Issues Pessimistic Forecast for CarMax (NYSE:KMX) Stock Price

CarMax (NYSE:KMX) had its target price lowered by stock analysts at Wedbush from $40.00 to $36.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a “neutral” rating on the stock. Wedbush’s price target would suggest a potential downside of 8.57% from the company’s current price.

Several other research analysts also recently weighed in on the company. Oppenheimer reaffirmed a “market perform” rating on shares of CarMax in a research note on Friday, September 26th. Robert W. Baird reduced their price objective on shares of CarMax from $90.00 to $60.00 and set an “outperform” rating for the company in a research report on Friday, September 26th. Stephens downgraded shares of CarMax from an “overweight” rating to an “equal weight” rating and decreased their price objective for the company from $53.00 to $42.00 in a report on Tuesday, October 7th. Morgan Stanley set a $35.00 target price on shares of CarMax in a research note on Monday, December 8th. Finally, Seaport Res Ptn downgraded shares of CarMax from a “strong-buy” rating to a “hold” rating in a research report on Sunday, September 28th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, eleven have issued a Hold rating and six have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus target price of $39.92.

CarMax Price Performance

NYSE:KMX opened at $39.37 on Friday. CarMax has a 52 week low of $30.26 and a 52 week high of $91.25. The company has a quick ratio of 1.06, a current ratio of 2.46 and a debt-to-equity ratio of 2.87. The stock has a market capitalization of $5.78 billion, a PE ratio of 11.55, a price-to-earnings-growth ratio of 1.01 and a beta of 1.29. The stock’s 50-day moving average price is $39.35 and its 200-day moving average price is $53.00.

CarMax (NYSE:KMX) last released its quarterly earnings results on Thursday, December 18th. The company reported $0.43 earnings per share for the quarter, topping analysts’ consensus estimates of $0.32 by $0.11. The company had revenue of $5.79 billion during the quarter, compared to analysts’ expectations of $5.66 billion. CarMax had a return on equity of 8.51% and a net margin of 1.98%.CarMax’s quarterly revenue was down 6.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.81 EPS. As a group, equities analysts expect that CarMax will post 3.23 EPS for the current fiscal year.

Hedge Funds Weigh In On CarMax

A number of institutional investors and hedge funds have recently bought and sold shares of KMX. AQR Capital Management LLC raised its holdings in CarMax by 195.3% in the 2nd quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company’s stock valued at $298,107,000 after acquiring an additional 2,947,996 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of CarMax by 33.2% during the 3rd quarter. Dimensional Fund Advisors LP now owns 3,685,201 shares of the company’s stock worth $165,358,000 after purchasing an additional 918,553 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its position in shares of CarMax by 73.7% in the third quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock valued at $158,074,000 after purchasing an additional 1,494,205 shares in the last quarter. Invesco Ltd. grew its position in shares of CarMax by 14.2% in the third quarter. Invesco Ltd. now owns 3,425,737 shares of the company’s stock valued at $153,713,000 after purchasing an additional 426,809 shares in the last quarter. Finally, Baird Financial Group Inc. increased its holdings in shares of CarMax by 6.6% in the second quarter. Baird Financial Group Inc. now owns 3,298,113 shares of the company’s stock valued at $221,666,000 after purchasing an additional 204,481 shares during the last quarter.

CarMax Company Profile

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.