J.P. Morgan Thinks CarMax’s Stock is Going to Recover

J.P. Morgan analyst Rajat Gupta CFA maintained a Buy rating on CarMax (KMXResearch Report) on January 21 and set a price target of $155.00. The company’s shares closed last Friday at $108.10, close to its 52-week low of $102.47.

According to TipRanks.com, CFA is a 4-star analyst with an average return of 23.9% and a 64.3% success rate. CFA covers the Consumer Goods sector, focusing on stocks such as Group 1 Automotive, Shift Technologies, and Lithia Motors.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for CarMax with a $160.63 average price target, which is a 53.0% upside from current levels. In a report issued on January 6, Bank of America Securities also maintained a Buy rating on the stock with a $195.00 price target.

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CarMax’s market cap is currently $17.48B and has a P/E ratio of 14.91.

Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KMX in relation to earlier this year.

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CarMax, Inc. is as a holding company, which engages in the retail of used vehicles and wholesale vehicle auction operator. It operates through the CarMax Sales Operations and CarMax Auto Finance (CAF) business segments. The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. The CAF segment provides vehicle financing to customers buying retail vehicles. The company was founded by Richard L. Sharp and William Austin Ligon in September 1993 and is headquartered in Richmond, VA.

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