CarMax (NYSE:KMX) Shares Gap Down – What’s Next?

CarMax, Inc. (NYSE:KMX)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $41.07, but opened at $38.40. CarMax shares last traded at $41.1970, with a volume of 2,143,929 shares trading hands.

Analyst Ratings Changes

KMX has been the topic of several recent analyst reports. Barclays initiated coverage on shares of CarMax in a research note on Tuesday, November 11th. They issued an “underweight” rating and a $28.00 target price on the stock. Wedbush reaffirmed a “neutral” rating and issued a $40.00 price target on shares of CarMax in a report on Tuesday, November 18th. BNP Paribas Exane dropped their price objective on CarMax from $52.00 to $35.00 and set an “underperform” rating for the company in a research note on Friday, September 26th. Mizuho reduced their target price on CarMax from $78.00 to $46.00 and set a “neutral” rating for the company in a research report on Thursday, October 16th. Finally, Wall Street Zen downgraded shares of CarMax from a “hold” rating to a “sell” rating in a report on Friday, October 3rd. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twelve have assigned a Hold rating and five have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and a consensus target price of $41.69.

CarMax Trading Down 1.6%

The stock has a market capitalization of $5.93 billion, a P/E ratio of 11.87, a price-to-earnings-growth ratio of 1.00 and a beta of 1.29. The stock’s fifty day moving average price is $39.44 and its two-hundred day moving average price is $53.10. The company has a current ratio of 2.46, a quick ratio of 1.06 and a debt-to-equity ratio of 2.87.

CarMax (NYSE:KMX) last issued its earnings results on Thursday, December 18th. The company reported $0.43 EPS for the quarter, topping analysts’ consensus estimates of $0.32 by $0.11. CarMax had a net margin of 1.98% and a return on equity of 8.51%. The company had revenue of $5.79 billion for the quarter, compared to analysts’ expectations of $5.66 billion. During the same quarter last year, the company earned $0.81 EPS. The firm’s revenue was down 6.9% compared to the same quarter last year. Equities research analysts forecast that CarMax, Inc. will post 3.23 EPS for the current year.

Institutional Investors Weigh In On CarMax

Several institutional investors have recently bought and sold shares of the stock. Norges Bank bought a new stake in CarMax in the 2nd quarter worth $208,144,000. AQR Capital Management LLC boosted its holdings in shares of CarMax by 195.3% during the second quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company’s stock worth $298,107,000 after purchasing an additional 2,947,996 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in shares of CarMax by 1,410.5% during the second quarter. Arrowstreet Capital Limited Partnership now owns 2,028,718 shares of the company’s stock worth $136,350,000 after purchasing an additional 1,894,408 shares during the period. The Manufacturers Life Insurance Company grew its stake in shares of CarMax by 795.5% in the second quarter. The Manufacturers Life Insurance Company now owns 1,846,406 shares of the company’s stock worth $124,097,000 after purchasing an additional 1,640,219 shares during the last quarter. Finally, Vulcan Value Partners LLC increased its holdings in CarMax by 135.2% during the 3rd quarter. Vulcan Value Partners LLC now owns 2,328,120 shares of the company’s stock valued at $104,569,000 after purchasing an additional 1,338,134 shares during the period.

CarMax Company Profile

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.