William Blair analyst Sharon Zackfia has reiterated their bullish stance on KMX stock, giving a Buy rating on April 1.
Sharon Zackfia has given her Buy rating due to a combination of factors that highlight CarMax’s potential for growth despite a modest fourth-quarter miss. The company’s earnings per share were slightly below expectations, partly due to a noncash lease impairment related to Edmunds. However, CarMax demonstrated strong underlying sales performance, with comparable store sales accelerating to 5.1%.
Although this fell short of consensus expectations, revenue growth reached 6.7%, marking the fastest rate since early 2022. This growth was supported by a 6% increase in retail units sold and a nearly 1% rise in retail average selling prices, alongside a 3% increase in wholesale units. Additionally, CarMax maintained a stable market share of 3.7% for the fiscal year, with gains in the latter half of the year balancing earlier losses. These factors collectively suggest a positive outlook for CarMax, justifying the Buy rating.
In another report released on April 1, Wedbush also maintained a Buy rating on the stock with a $100.00 price target.
Based on the recent corporate insider activity of 58 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.