CarMax (NYSE:KMX) Rating Lowered to Hold at Zacks Research

CarMax (NYSE:KMX) was downgraded by research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Wednesday, Zacks reports.

KMX has been the subject of several other research reports. Royal Bank Of Canada lifted their price target on CarMax from $41.00 to $45.00 and gave the stock a “sector perform” rating in a research note on Thursday, June 18th. UBS Group set a $60.00 target price on CarMax in a report on Wednesday, July 29th. Mizuho increased their target price on shares of CarMax from $38.00 to $43.00 and gave the stock a “neutral” rating in a report on Thursday, June 18th. Benchmark reaffirmed a “hold” rating on shares of CarMax in a research note on Thursday, June 18th. Finally, Wall Street Zen raised shares of CarMax from a “sell” rating to a “hold” rating in a research note on Saturday, June 13th. Two analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, CarMax presently has an average rating of “Reduce” and an average price target of $51.00.

CarMax Stock Performance

NYSE KMX opened at $58.41 on Wednesday. CarMax has a 52-week low of $30.26 and a 52-week high of $65.28. The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.82 and a current ratio of 2.70. The company has a market capitalization of $8.29 billion, a P/E ratio of 38.17, a P/E/G ratio of 2.71 and a beta of 1.17. The company has a fifty day moving average of $59.43 and a 200-day moving average of $49.34.

CarMax (NYSE:KMX) last released its earnings results on Wednesday, June 17th. The company reported $1.31 EPS for the quarter, beating analysts’ consensus estimates of $0.96 by $0.35. The business had revenue of $8.01 billion for the quarter, compared to analysts’ expectations of $7.42 billion. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The firm’s revenue was up 6.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.38 earnings per share. As a group, equities research analysts predict that CarMax will post 2.72 EPS for the current fiscal year.

Insider Activity at CarMax

In other CarMax news, Director Sona Chawla acquired 2,000 shares of the company’s stock in a transaction that occurred on Thursday, June 25th. The shares were bought at an average price of $53.39 per share, with a total value of $106,780.00. Following the completion of the acquisition, the director owned 21,702 shares in the company, valued at $1,158,669.78. This represents a 10.15% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Keith Barr bought 9,400 shares of the business’s stock in a transaction that occurred on Monday, June 22nd. The shares were acquired at an average price of $53.01 per share, with a total value of $498,294.00. Following the completion of the transaction, the chief executive officer directly owned 33,375 shares of the company’s stock, valued at $1,769,208.75. This trade represents a 39.21% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders bought 13,900 shares of company stock worth $735,574. 1.01% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Jupiter Topco LLC bought a new stake in CarMax during the 2nd quarter valued at approximately $245,676,000. Primecap Management Co. CA bought a new position in CarMax in the 2nd quarter worth approximately $230,548,000. Norges Bank purchased a new position in shares of CarMax in the fourth quarter worth $159,232,000. The Manufacturers Life Insurance Company purchased a new position in CarMax during the second quarter valued at $128,001,000. Finally, Canada Pension Plan Investment Board bought a new stake in CarMax in the 2nd quarter valued at $115,465,000.

CarMax Company Profile

CarMax, Inc is a specialty retailer of used vehicles and one of the largest automotive retailers in the United States. The company sells a broad selection of used cars, trucks and sport utility vehicles through its retail locations and online platform. CarMax also purchases vehicles from consumers and other sources, providing customers with a streamlined alternative to traditional private-party sales.

In addition to retail sales, CarMax operates wholesale vehicle auctions for vehicles that do not meet its retail standards or business requirements.