CarMax (NYSE:KMX) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

CarMax (NYSE:KMX) had its price objective raised by JPMorgan Chase & Co. from $35.00 to $37.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has an “underweight” rating on the stock. JPMorgan Chase & Co.‘s target price indicates a potential downside of 27.09% from the stock’s current price.

KMX has been the subject of a number of other reports. UBS Group assumed coverage on CarMax in a research note on Wednesday, May 27th. They issued a “neutral” rating and a $42.00 target price for the company. Argus raised CarMax to a “hold” rating in a research note on Thursday, April 16th. Barclays cut their target price on CarMax from $28.00 to $26.00 and set an “underweight” rating for the company in a research note on Thursday, April 16th. Evercore set a $45.00 target price on CarMax in a research note on Friday, April 10th. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $41.00 target price on shares of CarMax in a research note on Wednesday, April 15th. One research analyst has rated the stock with a Buy rating, fourteen have assigned a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Reduce” and a consensus target price of $41.40.

CarMax Stock Performance

NYSE KMX traded up $2.25 during trading hours on Thursday, reaching $50.75. The stock had a trading volume of 1,720,647 shares, compared to its average volume of 3,332,873. The stock has a fifty day moving average of $41.42 and a 200 day moving average of $41.97. The stock has a market cap of $7.20 billion, a P/E ratio of 31.79, a price-to-earnings-growth ratio of 1.82 and a beta of 1.21. CarMax has a 52-week low of $30.26 and a 52-week high of $71.99. The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.49 and a current ratio of 2.20.

CarMax (NYSE:KMX) last released its quarterly earnings data on Tuesday, April 14th. The company reported $0.34 EPS for the quarter, topping the consensus estimate of $0.22 by $0.12. CarMax had a return on equity of 7.00% and a net margin of 0.96%.The business had revenue of $5.95 billion for the quarter, compared to analyst estimates of $5.65 billion. During the same quarter in the prior year, the firm posted $0.58 EPS. The business’s quarterly revenue was down 1.0% compared to the same quarter last year. Sell-side analysts predict that CarMax will post 2.3 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. SRS Investment Management LLC boosted its stake in shares of CarMax by 1,717.5% in the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock valued at $217,845,000 after buying an additional 5,327,603 shares in the last quarter. AQR Capital Management LLC boosted its stake in shares of CarMax by 151.8% in the fourth quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock valued at $306,429,000 after buying an additional 4,780,903 shares in the last quarter. Norges Bank purchased a new stake in shares of CarMax in the fourth quarter valued at approximately $159,232,000. Arrowstreet Capital Limited Partnership boosted its stake 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 buying an additional 1,494,205 shares in the last quarter. Finally, Vulcan Value Partners LLC boosted its stake in shares of CarMax by 135.2% in the third quarter. Vulcan Value Partners LLC now owns 2,328,120 shares of the company’s stock valued at $104,569,000 after buying an additional 1,338,134 shares in the last quarter.

CarMax Company Profile

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.