CarMax (NYSE:KMX) Downgraded to Hold Rating by Zacks Research

Zacks Research cut shares of CarMax (NYSE:KMX) from a strong-buy rating to a hold rating in a research note released on Wednesday morning,Zacks reports.

KMX has been the topic of several other research reports. Bank of America lifted their price objective on CarMax from $40.00 to $45.00 and gave the stock an “underperform” rating in a report on Wednesday, June 17th. Weiss Ratings upgraded CarMax from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, July 20th. Mizuho raised their target price on CarMax from $38.00 to $43.00 and gave the stock a “neutral” rating in a research report on Thursday, June 18th. Benchmark reiterated a “hold” rating on shares of CarMax in a research note on Thursday, June 18th. Finally, Royal Bank Of Canada boosted their price target on shares of CarMax from $41.00 to $45.00 and gave the company a “sector perform” rating in a report on Thursday, June 18th. Two investment analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, CarMax currently has a consensus rating of “Reduce” and an average price target of $51.00.

CarMax Stock Down 0.7%

Shares of KMX opened at $58.41 on Wednesday. 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 50-day simple moving average of $59.43 and a 200-day simple moving average of $49.34. CarMax has a 52 week low of $30.26 and a 52 week high of $65.28. The firm 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.

CarMax (NYSE:KMX) last released its earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, topping analysts’ consensus estimates of $0.96 by $0.35. The business had revenue of $8.01 billion for the quarter, compared to the consensus estimate of $7.42 billion. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The firm’s revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period last year, the business earned $1.38 earnings per share. On average, equities research analysts expect that CarMax will post 2.72 earnings per share for the current year.

Insider Activity at CarMax

In related news, Director Peter Bensen purchased 2,500 shares of the stock in a transaction on Monday, June 22nd. The shares were purchased at an average cost of $52.20 per share, for a total transaction of $130,500.00. Following the completion of the transaction, the director directly owned 24,796 shares of the company’s stock, valued at approximately $1,294,351.20. The trade was a 11.21% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Keith Barr bought 9,400 shares of the stock in a transaction dated Monday, June 22nd. The stock was purchased at an average cost of $53.01 per share, for a total transaction of $498,294.00. Following the acquisition, the chief executive officer owned 33,375 shares in the company, valued at $1,769,208.75. The trade was a 39.21% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased a total of 13,900 shares of company stock valued at $735,574 in the last 90 days. 1.01% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On CarMax

A number of large investors have recently bought and sold shares of the business. Jupiter Topco LLC acquired a new position in CarMax in the second quarter worth $245,676,000. Primecap Management Co. CA bought a new position in shares of CarMax in the second quarter valued at about $230,548,000. Janus Henderson Group PLC raised its holdings in shares of CarMax by 1.1% in the first quarter. Janus Henderson Group PLC now owns 4,580,807 shares of the company’s stock valued at $190,471,000 after buying an additional 49,987 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in CarMax by 7.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,275,663 shares of the company’s stock worth $177,767,000 after buying an additional 289,768 shares in the last quarter. Finally, Baird Financial Group Inc. grew its holdings in CarMax by 4.5% during the 2nd quarter. Baird Financial Group Inc. now owns 3,207,134 shares of the company’s stock worth $169,625,000 after acquiring an additional 138,682 shares during the last quarter.

About CarMax

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.