CarMax (NYSE:KMX) Lowered to “Sell” Rating by StockNews.com

StockNews.com lowered shares of CarMax (NYSE:KMX) from a hold rating to a sell rating in a research report sent to investors on Friday morning.

Several other research analysts also recently commented on the company. JPMorgan Chase & Co. cut their target price on CarMax from $72.00 to $65.00 and set an “underweight” rating on the stock in a report on Thursday, March 27th. Royal Bank of Canada cut their price objective on CarMax from $103.00 to $80.00 and set an “outperform” rating on the stock in a research note on Friday. Needham & Company LLC decreased their target price on shares of CarMax from $101.00 to $92.00 and set a “buy” rating for the company in a research report on Friday. Truist Financial raised their price target on shares of CarMax from $72.00 to $88.00 and gave the stock a “hold” rating in a report on Friday, December 20th. Finally, Mizuho upped their price objective on shares of CarMax from $72.00 to $80.00 and gave the company a “neutral” rating in a research note on Friday, December 20th. Three analysts have rated the stock with a sell rating, three have given a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $87.73.

CarMax Price Performance

Shares of NYSE:KMX opened at $68.53 on Friday. The company has a debt-to-equity ratio of 2.92, a quick ratio of 0.55 and a current ratio of 2.30. CarMax has a 52 week low of $63.23 and a 52 week high of $91.25. The firm has a market cap of $10.54 billion, a PE ratio of 23.23, a price-to-earnings-growth ratio of 1.67 and a beta of 1.58. The firm’s fifty day moving average is $78.61 and its 200-day moving average is $79.16.

Insider Buying and Selling at CarMax

In other CarMax news, CFO Enrique N. Mayor-Mora sold 5,000 shares of the company’s stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $81.43, for a total transaction of $407,150.00. Following the transaction, the chief financial officer now owns 20,260 shares in the company, valued at approximately $1,649,771.80. This represents a 19.79 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, SVP Tyler Tuite sold 4,869 shares of CarMax stock in a transaction dated Tuesday, January 28th. The shares were sold at an average price of $84.58, for a total transaction of $411,820.02. Following the transaction, the senior vice president now owns 227 shares of the company’s stock, valued at $19,199.66. This represents a 95.55 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 22,878 shares of company stock valued at $1,872,699. Corporate insiders own 1.66% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Gilman Hill Asset Management LLC lifted its position in shares of CarMax by 7.5% during the first quarter. Gilman Hill Asset Management LLC now owns 34,778 shares of the company’s stock valued at $2,710,000 after purchasing an additional 2,416 shares in the last quarter. Contravisory Investment Management Inc. purchased a new stake in CarMax in the 1st quarter valued at about $490,000. Triangle Securities Wealth Management lifted its position in shares of CarMax by 42.0% during the 1st quarter. Triangle Securities Wealth Management now owns 20,218 shares of the company’s stock worth $1,575,000 after buying an additional 5,983 shares in the last quarter. Merit Financial Group LLC boosted its stake in shares of CarMax by 79.0% in the 1st quarter. Merit Financial Group LLC now owns 13,129 shares of the company’s stock worth $1,023,000 after buying an additional 5,796 shares during the last quarter. Finally, Eldred Rock Partners LLC grew its holdings in shares of CarMax by 10.2% in the first quarter. Eldred Rock Partners LLC now owns 154,941 shares of the company’s stock valued at $11,961,000 after acquiring an additional 14,289 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.