After Robert W. Baird and Wedbush gave CarMax (NYSE: KMX) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Brian Nagel maintained a Buy rating on CarMax today and set a price target of $88. The company’s shares closed yesterday at $70.76.
Nagel commented:
“Early in 2018, we lifted our rating on CarMax (KMX) to a historically discounted valuation and prospects for strengthening used car unit comps, particularly as comparisons ease. KMX shares have traded lower in recent weeks following a largely solid Q2 (Aug.) report. We stepped back and reevaluated closely underlying drivers of CarMax and our thesis on shares. We conclude that the recent pullback reflects largely ongoing “noise” and is at odds with improving near-term prospects for the chain. Inside we detail several key points to support our continued positive stance on KMX and our view that shares are now setting up well ahead of upcoming data points. Our price target of $88 suggests upside of more than 20%.”
According to TipRanks.com, Nagel is a 5-star analyst with an average return of 7.8% and a 63.3% success rate. Nagel covers the Services sector, focusing on stocks such as Dick’s Sporting Goods, Advance Auto Parts, and Lumber Liquidators.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for CarMax with a $87.75 average price target.
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CarMax’s market cap is currently $12.4B and has a P/E ratio of 17.47. The company has a Price to Book ratio of 3.56.
Based on the recent corporate insider activity of 73 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Mohammad Shamim, the SVP & CIO of KMX sold 34,142 shares for a total of $2,532,029.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
CarMax, Inc. is as a holding company, which engages in retailing of used vehicles and wholesale vehicle auction operator. It operates through the CarMax Sales Operations and CarMax Auto Finance (CAF) segment.
