CarMax (NYSE:KMX) Downgraded by Zacks Research to “Strong Sell”

Zacks Research cut shares of CarMax (NYSE:KMX) from a hold rating to a strong sell rating in a research note issued to investors on Thursday morning,Zacks.com reports.

Several other equities research analysts have also commented on the company. BNP Paribas Exane dropped their price target on CarMax from $52.00 to $35.00 and set an “underperform” rating for the company in a research note on Friday, September 26th. Morgan Stanley decreased their target price on CarMax from $80.00 to $56.00 and set an “overweight” rating for the company in a report on Wednesday. Stephens dropped their target price on shares of CarMax from $74.00 to $53.00 and set an “overweight” rating for the company in a research report on Friday, September 26th. Mizuho reduced their price target on shares of CarMax from $80.00 to $78.00 and set a “neutral” rating on the stock in a research report on Thursday, July 3rd. Finally, Truist Financial decreased their price objective on shares of CarMax from $74.00 to $47.00 and set a “hold” rating for the company in a research note on Friday, September 26th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $56.58.

CarMax Stock Performance

NYSE:KMX opened at $46.42 on Thursday. The company has a quick ratio of 1.06, a current ratio of 2.46 and a debt-to-equity ratio of 2.87. The company has a market cap of $6.82 billion, a P/E ratio of 13.61, a P/E/G ratio of 0.87 and a beta of 1.27. CarMax has a fifty-two week low of $42.75 and a fifty-two week high of $91.25. The firm’s 50 day moving average is $56.99 and its two-hundred day moving average is $63.94.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Thursday, September 25th. The company reported $0.64 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.03 by ($0.39). The company had revenue of $6.59 billion for the quarter, compared to analysts’ expectations of $7.07 billion. CarMax had a net margin of 1.98% and a return on equity of 8.51%. The firm’s quarterly revenue was down 6.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.85 earnings per share. Analysts expect that CarMax will post 3.23 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. AQR Capital Management LLC raised its position in shares of CarMax by 195.3% in the 2nd quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company’s stock valued at $298,107,000 after purchasing an additional 2,947,996 shares in the last quarter. Baird Financial Group Inc. increased its stake in shares of CarMax by 6.6% in the second quarter. Baird Financial Group Inc. now owns 3,298,113 shares of the company’s stock worth $221,666,000 after buying an additional 204,481 shares during the last quarter. Norges Bank acquired a new stake in CarMax in the second quarter valued at $208,144,000. Invesco Ltd. boosted its stake in CarMax by 4.7% during the 2nd quarter. Invesco Ltd. now owns 2,998,928 shares of the company’s stock valued at $201,558,000 after acquiring an additional 135,334 shares during the last quarter. Finally, First Pacific Advisors LP boosted its stake in CarMax by 0.6% during the 2nd quarter. First Pacific Advisors LP now owns 2,431,244 shares of the company’s stock valued at $163,404,000 after acquiring an additional 15,270 shares during the last quarter.

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.