Needham & Company LLC Forecasts Strong Price Appreciation for CarMax (NYSE:KMX) Stock

CarMax (NYSE:KMX) had its price target upped by investment analysts at Needham & Company LLC from $98.00 to $101.00 in a note issued to investors on Monday,Benzinga reports. The firm currently has a “buy” rating on the stock. Needham & Company LLC’s price objective points to a potential upside of 17.94% from the company’s previous close.

A number of other equities research analysts have also recently weighed in on the company. Evercore ISI upped their price objective on CarMax from $83.00 to $85.00 and gave the stock a “market perform” rating in a research note on Thursday, December 19th. Wedbush restated an “outperform” rating and set a $95.00 price objective on shares of CarMax in a research note on Wednesday, October 16th. Mizuho upped their price objective on CarMax from $72.00 to $80.00 and gave the stock a “neutral” rating in a research note on Friday, December 20th. Truist Financial upped their price objective on CarMax from $72.00 to $88.00 and gave the stock a “hold” rating in a research note on Friday, December 20th. Finally, Royal Bank of Canada upped their price objective on CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a research note on Thursday, December 19th. Three analysts have rated the stock with a sell rating, six have assigned a hold rating and six have assigned a buy rating to the company. According to MarketBeat, CarMax presently has an average rating of “Hold” and a consensus price target of $85.42.

CarMax Price Performance

KMX opened at $85.64 on Monday. CarMax has a 12-month low of $65.83 and a 12-month high of $91.25. The company has a current ratio of 2.30, a quick ratio of 0.55 and a debt-to-equity ratio of 2.92. The business’s fifty day simple moving average is $83.10 and its 200-day simple moving average is $79.52. The company has a market capitalization of $13.17 billion, a price-to-earnings ratio of 29.03, a PEG ratio of 1.66 and a beta of 1.72.

CarMax (NYSE:KMX) last posted its quarterly earnings results on Thursday, December 19th. The company reported $0.81 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.62 by $0.19. The business had revenue of $6.22 billion for the quarter, compared to the consensus estimate of $6.05 billion. CarMax had a return on equity of 7.49% and a net margin of 1.77%. The business’s revenue was up 1.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.52 EPS. On average, equities research analysts anticipate that CarMax will post 3.25 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO William D. Nash sold 120,513 shares of the firm’s stock in a transaction dated Monday, December 23rd. The stock was sold at an average price of $83.24, for a total transaction of $10,031,502.12. Following the sale, the chief executive officer now directly owns 181,683 shares of the company’s stock, valued at $15,123,292.92. This trade represents a 39.88 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP James Lyski sold 57,986 shares of the firm’s stock in a transaction dated Thursday, January 2nd. The stock was sold at an average price of $81.35, for a total value of $4,717,161.10. Following the sale, the executive vice president now directly owns 22,803 shares in the company, valued at approximately $1,855,024.05. This trade represents a 71.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 264,467 shares of company stock valued at $21,915,445. Company insiders own 1.66% of the company’s stock.

Institutional Trading of CarMax

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Quarry LP grew its holdings in CarMax by 78.6% during the second quarter. Quarry LP now owns 418 shares of the company’s stock worth $31,000 after acquiring an additional 184 shares during the period. Catalyst Capital Advisors LLC acquired a new stake in CarMax during the third quarter worth about $32,000. True Wealth Design LLC grew its holdings in CarMax by 4,844.4% in the third quarter. True Wealth Design LLC now owns 445 shares of the company’s stock valued at $34,000 after purchasing an additional 436 shares during the period. Allworth Financial LP lifted its position in shares of CarMax by 62.7% in the fourth quarter. Allworth Financial LP now owns 646 shares of the company’s stock valued at $51,000 after acquiring an additional 249 shares in the last quarter. Finally, ST Germain D J Co. Inc. purchased a new position in shares of CarMax in the fourth quarter valued at approximately $58,000.

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.