Today RBC Capital Mkts Reaffirms a Sector Perform Rating on CarMax (NYSE:KMX) and a $65.0 Target Price

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CarMax (NYSE:KMX) Rating Reaffirmed

RBC Capital Mkts now has a $65.0 target on the $11.65B market cap company or 12.34% upside potential. In a note issued on 15 December, CarMax (NYSE:KMX) shares have had their Sector Perform Rating has decided to restate by expert analysts at RBC Capital Mkts.

From a total of 15 analysts covering Carmax Inc (NYSE:KMX) stock, 11 rate it a ”Buy”, 0 a “Sell”, and 8 a ”Hold”. This means that 58% of the ratings are positive. The highest target price is $88 while the lowest target price is $57. The mean of all analyst targets is $73.2 with a 20.57% above today’s ($57.86) stock price. Carmax Inc was the topic of 9 analyst reports since August 3, 2015 according to the firm StockzIntelligence Inc. Buckingham Research initiated shares on November 13 with “Buy” rating. Oppenheimer maintained shares with “Outperform” rating and $77 target share price in a report from a September 21. Vetr downgraded KMX stock in a recent report from September 4 to “Buy” rating. Finally, Wedbush maintained the stock with “Neutral” rating in a report issued on an August 18.

The stock increased 0.66% or $0.38 during the last trading session, striking $57.86. Approximately shares of stock traded hands. CarMax, Inc (NYSE:KMX) has declined 18.82% since May 12, 2015 and is downtrending. It has underperformed by 15.14% the S&P500.

Analysts await CarMax, Inc (NYSE:KMX) to reports earnings on December, 18 before the open. They expect $0.68 EPS, up 13.33% or $0.08 from last year’s $0.6 per share. KMX’s profit will be $136.92 million for 21.27 P/E if the $0.68 EPS becomes reality. After $0.79 actual EPS reported by CarMax, Inc for the previous quarter, Wall Street now forecasts -13.92% negative EPS growth.

The overall sentiment of institutions has decreased to 0.95 in Q2 2015. Its down 0.07, from 1.02 in 2015Q2. The ratio is negative, as 69 institutions have sold all the shares of CarMax, Inc that they owned while 145 funds have taken shares off the table. 38 funds have purchased shares for the first time while 165 added to their positions. These institutions now hold 213.93 million shares or 4.51% more than the 204.70 million shares they owned in 2015Q2.

The Fund Salzman & Co. Inc. currently is holding shares equating to 16.02% of its total portfolio in CarMax, Inc representing a total of 522,489 shares. Another fund,Abrams Bison Investments Llc, is holding a total of 1.80 million shares equating to 11.75% of their holdings. Additionally, Broad Run Investment Management Llc has a 2.39 million share stake in CarMax, Inc which represents 8.05% of their total portfolio. The Fund, Markel Corp, based out of Virginia, has also built up a stake in the stock, which represents a total of 7.68% of their total portfolio. Finally Avenir Corp, a fund which is based in the state of reported a total holdings of 1.24 million shares.

Insider activity is a very important aspect to track on any stock. Going back to April 9, 2015, shareholders of CarMax, Inc have witnessed 0 buys, and a total of 3 sales equating to a net activity of approximately $840,029 . Shamim Mohammad sold 2,676 shares worth approximately $161,122. Stemberg Thomas sold 7,610 shares worth approximately $505,152. Blaylock Ronald E sold 2,616 shares worth approximately $173,755. Margolin Eric M sold 64,894 shares worth approximately $4.68M. The company insider Hill Edwin J sold 15,955 shares worth $1.14 million.

CarMax, Inc. is a holding company engaged in providing used vehicles and related services and products. The company has a market cap of $11.65 billion. The Firm operates through two business divisions: CarMax Sales Operations and CarMax Auto Finance (CAF). It has 19.59 P/E ratio. The Company’s CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF.

According to Zacks Investment Research, “CarMax, Inc. operates as a retailer of used cars. The Company also sells vehicles through on-site wholesale auctions, as well as sells new vehicles under franchise agreements. It operates used car superstores, provides customers with a range of other related products and services, including the appraisal and purchase of vehicles directly from consumers, the sale of extended service plans, guaranteed asset protection and accessories and vehicle repair service. CarMax, Inc. is based in Richmond, Virginia.”

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