On September 30, 2023, investment analysts at Truist Financial lowered the price target for CarMax (NYSE:KMX) from $82.00 to $72.00. This adjustment was noted in a note issued to investors by FlyOnTheWall. According to Truist Financial’s price target, there is a potential upside of 4.29% from the company’s current stock price.
As of Friday, shares of KMX stock opened at $69.04. CarMax has a quick ratio of 0.61, indicating its ability to meet short-term obligations, and a current ratio of 2.54, reflecting its ability to cover both short-term and long-term liabilities with its assets. With a debt-to-equity ratio of 3.12, the company’s financial leverage is notable. Over the past twelve months, CarMax reached a low of $52.10 and a high of $87.50 in terms of stock value.
During the fifty-day moving average period ending on Friday, the average price for CarMax was $81.75 per share, while the two-hundred day moving average was recorded as $75.66 per share. The market capitalization for CarMax stands at approximately $10.92 billion, signifying its size in terms of total market value.
CarMax boasts a price-to-earnings ratio (P/E) of 23.73 and a price-to-earnings-growth ratio (PEG) of 1.72, which suggests that the stock may be priced relatively higher compared to its earnings growth prospects for future periods.
In terms of risk assessment using beta as an indicator, CarMax has a beta value of 1.44 which reflects higher volatility compared to the overall market average.
Recent changes have been observed in institutional investors and hedge funds holding positions in CarMax shares; some adjusted their holdings accordingly over the course of the business’s operations. Larson Financial Group LLC acquired a new stake in CarMax during the first quarter, valued at approximately $25,000. Similarly, Park Place Capital Corp increased its holdings in the second quarter by 125.8%, now owning 298 shares of the company’s stock valued at $25,000. CENTRAL TRUST Co raised its holdings in CarMax by 100% during the third quarter and holds 400 shares worth $26,000. Blume Capital Management Inc. also entered the scene, acquiring a new stake in CarMax worth $31,000 during the first quarter. Furthermore, Capital Advisors Ltd. LLC experienced a significant rise in their position by 456.5% during the second quarter and currently holds 384 shares valued at $32,000.
On September 28th, CarMax announced its earnings results for the latest quarter ending on that date. The company reported earnings per share (EPS) of $0.75, meeting analysts’ consensus estimates of $0.75. CarMax displayed a return on equity (ROE) of 7.46% and a net margin of 1.64%. Revenue for this period amounted to $7.07 billion compared to analysts’ expectations of $7.02 billion; however, it represented a decline of 13.1% year-over-year.
It is estimated by equities research analysts that CarMax will achieve an earnings per share (EPS) of approximately 3.03 for the current fiscal year.
Investors and market participants are advised to consider all available information and carefully analyze financial indicators before making any investment decisions related to CarMax stock (NYSE:KMX).
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Mixed Sentiment Surrounding CarMax: Analyst Reports and Insider Selling
CarMax, a leading automotive retailer in the United States, has recently been under scrutiny by analysts and investors. Numerous reports have been issued regarding the company’s stock performance and price targets, resulting in a mixed sentiment among industry experts.
One such report came from Morgan Stanley on June 28th, where they raised CarMax’s target price from $75.00 to $80.00. This adjustment indicates an increase in their valuation of the company, potentially reflecting positive expectations for future performance.
Conversely, Royal Bank of Canada (RBC) released a research report that lowered CarMax’s price objective from $90.00 to $80.00. This downgrade may suggest concerns about the company’s ability to meet financial targets or uncertainties affecting its industry.
JPMorgan Chase & Co., on the other hand, revised CarMax’s price objective upward from $55.00 to $60.00 in their research report published on June 26th. This adjustment could indicate optimism about the company’s growth prospects or positive market conditions within the automotive sector.
StockNews.com initiated coverage on CarMax and assigned it a “sell” rating on August 17th, indicating a pessimistic outlook for the company. However, it is important to note that this is only one opinion among many others and does not necessarily reflect an overall consensus view.
In another notable development, Northcoast Research downgraded CarMax from a “buy” rating to a “neutral” rating in their research report on June 12th. This change may suggest increasing doubts about the company’s overall potential or better investment opportunities available elsewhere.
Currently, according to Bloomberg data as of September 30, 2023, CarMax has received three sell ratings, five hold ratings, and five buy ratings from various research analysts. The consensus rating for the stock is defined as “Hold,” which means that there is no clear consensus among experts regarding its future performance.
Furthermore, Bloomberg also reported that the company has a consensus target price of $76.80, suggesting that analysts view this as the fair market valuation for CarMax shares as of the reference date. It is important to note that this valuation is based on various factors, including financial performance, industry trends, and macroeconomic conditions.
In other news related to CarMax, Senior Vice President Jon G. Daniels recently sold a significant number of company shares. On July 20th, Daniels sold 7,783 shares at an average price of $85.25 per share, resulting in a total transaction value of $663,500.75. These sales were disclosed via a legal filing with the Securities and Exchange Commission (SEC).
Similarly, on July 11th, Daniels sold another 15,730 shares at an average price of $84.59 per share, with a total value of $1,330,600.70. These transactions indicate that a high-ranking executive within CarMax chose to divest a substantial amount of their holdings in company stock.
Overall, it is worth noting that insiders have collectively sold 261,504 shares over the past three months at an estimated value exceeding $21 million. This level of insider selling could potentially be seen as either concerning or standard practice depending on investors’ perspectives.
The disclosure of these transactions and insider selling activity is publicly available through filings with the SEC website and can provide investors with insights into executives’ confidence or lack thereof in the company’s outlook.
Market participants should approach such information with due diligence and consider multiple factors when making investment decisions regarding CarMax stock. Market volatility and unpredictable external events can significantly influence stock prices and create uncertainty even among industry experts’ recommendations.
It remains crucial for investors to conduct their research and analysis before determining their stance on CarMax or any other investment opportunity they may pursue within the automotive retail sector or elsewhere in the market.
