CarMax Inc (NYSE:KMX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday, October 31st.
According to Zacks, “The Zacks Consensus Estimate for CarMax’s quarterly earnings has been going up of late. Being one of the strongest operators in the used-car market it occupies a significant market share, among its peers. The company is also following an aggressive store expansion initiative to strengthen its presence and cater to a larger customer group. Moreover, it enhances shareholders value by undertaking frequent share buyback programs. Also, in the last three months, its shares have outperformed the industry it belongs to. However, significant cash outflows from operations, huge capital expenditures and volatile used car prices are few headwinds CarMax is facing.”
A number of other analysts also recently commented on the stock. Citigroup Inc. increased their price objective on shares of CarMax to $84.00 and gave the company a “buy” rating in a report on Monday, September 25th. Deutsche Bank AG cut their price objective on shares of CarMax from $73.00 to $72.00 and set a “buy” rating for the company in a report on Tuesday, July 4th. Goldman Sachs Group, Inc. (The) downgraded shares of CarMax from a “buy” rating to a “neutral” rating and increased their price objective for the company from $74.00 to $79.00 in a report on Monday, September 25th. Wedbush reiterated an “outperform” rating and issued a $81.00 price objective (up previously from $77.00) on shares of CarMax in a report on Monday, September 25th. Finally, CIBC reiterated a “market perform” rating on shares of CarMax in a report on Thursday, October 5th. One investment analyst has rated the stock with a sell rating, ten have assigned a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average price target of $77.40.
Shares of CarMax (NYSE:KMX) traded down $1.10 during trading on Tuesday, reaching $69.45. 2,525,535 shares of the company were exchanged, compared to its average volume of 1,407,155. The stock has a market cap of $12,662.82, a price-to-earnings ratio of 19.08, a PEG ratio of 1.17 and a beta of 1.52. CarMax has a 1 year low of $54.29 and a 1 year high of $77.64. The company has a debt-to-equity ratio of 3.82, a current ratio of 2.33 and a quick ratio of 0.48.
CarMax (NYSE:KMX) last issued its quarterly earnings results on Friday, September 22nd. The company reported $0.98 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.95 by $0.03. The firm had revenue of $4.39 billion for the quarter, compared to analyst estimates of $4.26 billion. CarMax had a net margin of 4.09% and a return on equity of 21.88%. CarMax’s quarterly revenue was up 9.7% compared to the same quarter last year. During the same period last year, the company posted $0.88 EPS. equities analysts anticipate that CarMax will post 3.84 EPS for the current fiscal year.
In other CarMax news, Director Thomas J. Folliard sold 8,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 15th. The shares were sold at an average price of $70.75, for a total value of $566,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO William D. Nash sold 100,522 shares of the firm’s stock in a transaction that occurred on Tuesday, September 26th. The shares were sold at an average price of $73.85, for a total transaction of $7,423,549.70. Following the completion of the transaction, the chief executive officer now directly owns 62,902 shares of the company’s stock, valued at approximately $4,645,312.70. The disclosure for this sale can be found here. Insiders sold a total of 617,955 shares of company stock valued at $45,664,618 in the last quarter. 1.90% of the stock is owned by insiders.
A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. lifted its position in shares of CarMax by 2.1% during the 2nd quarter. Vanguard Group Inc. now owns 18,185,184 shares of the company’s stock worth $1,146,758,000 after purchasing an additional 380,038 shares during the last quarter. BlackRock Inc. lifted its position in shares of CarMax by 0.5% during the 2nd quarter. BlackRock Inc. now owns 11,142,473 shares of the company’s stock worth $702,643,000 after purchasing an additional 53,840 shares during the last quarter. Principal Financial Group Inc. lifted its position in shares of CarMax by 1.5% during the 3rd quarter. Principal Financial Group Inc. now owns 9,319,193 shares of the company’s stock worth $706,487,000 after purchasing an additional 142,175 shares during the last quarter. Broad Run Investment Management LLC lifted its position in shares of CarMax by 0.9% during the 2nd quarter. Broad Run Investment Management LLC now owns 3,377,241 shares of the company’s stock worth $212,969,000 after purchasing an additional 29,846 shares during the last quarter. Finally, Nordea Investment Management AB lifted its position in shares of CarMax by 751.0% during the 2nd quarter. Nordea Investment Management AB now owns 2,148,186 shares of the company’s stock worth $135,465,000 after purchasing an additional 1,895,763 shares during the last quarter.
CarMax, Inc (CarMax) is a holding company. The Company is a retailer of used vehicles. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The Company’s CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for CarMax Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CarMax Inc and related companies with our FREE daily email newsletter.