CarMax (NYSE:KMX) Shares Gap Down – Here’s Why

Shares of CarMax, Inc. (NYSE:KMX) gapped down prior to trading 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.

Analyst Ratings Changes

A number of research analysts have issued reports on KMX shares. Barclays initiated coverage on shares of CarMax in a research report on Tuesday, November 11th. They set an “underweight” rating and a $28.00 price objective on the stock. Mizuho cut their target price on shares of CarMax from $78.00 to $46.00 and set a “neutral” rating on the stock in a research note on Thursday, October 16th. Benchmark reissued a “hold” rating on shares of CarMax in a research note on Tuesday. Needham & Company LLC restated a “hold” rating on shares of CarMax in a report on Friday, November 7th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of CarMax in a research report on Tuesday, October 14th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have assigned a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus target price of $41.69.

CarMax Stock Performance

The company has a market capitalization of $5.93 billion, a PE ratio of 11.87, a PEG ratio of 1.00 and a beta of 1.29. The business’s 50-day moving average is $39.44 and its 200-day moving average is $53.10. The company has a debt-to-equity ratio of 2.87, a quick ratio of 1.06 and a current ratio of 2.46.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Thursday, December 18th. The company reported $0.43 earnings per share 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 business had revenue of $5.79 billion for the quarter, compared to analysts’ expectations of $5.66 billion. During the same quarter in the prior year, the company earned $0.81 earnings per share. The business’s revenue was down 6.9% compared to the same quarter last year. On average, research analysts anticipate that CarMax, Inc. will post 3.23 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Allworth Financial LP grew its stake in shares of CarMax by 41.3% in the third quarter. Allworth Financial LP now owns 6,086 shares of the company’s stock worth $273,000 after acquiring an additional 1,779 shares during the last quarter. CIBC Bancorp USA Inc. bought a new position in CarMax in the 3rd quarter worth about $688,000. Centaurus Financial Inc. grew its position in CarMax by 61.9% during the 3rd quarter. Centaurus Financial Inc. now owns 18,184 shares of the company’s stock valued at $816,000 after purchasing an additional 6,953 shares during the last quarter. Wilmington Savings Fund Society FSB grew its position in CarMax by 18.8% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 5,478 shares of the company’s stock valued at $246,000 after purchasing an additional 865 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd increased its stake in CarMax by 17,042.9% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 3,600 shares of the company’s stock valued at $162,000 after purchasing an additional 3,579 shares in the last quarter.

About CarMax

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.