CarMax Inc (KMX) Stock Rating Lowered by Zacks Investment Research
CarMax Inc (NYSE:KMX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “CarMax’s focus on the used-car market helps it to outperform the industry. The company is among the strongest operators in its peer group. Also, its aggressive store-expansion is expected to benefit the company. Its stock has also outperformed the industry it belongs to, in the last three months. Moreover, share repurchases will boost shareholder returns. However, significant cash outflows from operations, volatility in used car prices and increasing capital expenditures are few headwinds the company is facing.”
Other research analysts also recently issued reports about the company. CIBC reissued a “buy” rating on shares of CarMax in a report on Tuesday, July 4th. Oppenheimer Holdings, Inc. reissued a “buy” rating on shares of CarMax in a report on Monday, July 3rd. ValuEngine raised CarMax from a “hold” rating to a “buy” rating in a report on Friday, June 23rd. Bank of America Corporation reissued a “buy” rating and issued a $82.00 price target (up from $80.00) on shares of CarMax in a report on Thursday, June 22nd. Finally, Deutsche Bank AG reissued a “buy” rating and issued a $73.00 price target (up from $71.00) on shares of CarMax in a report on Thursday, June 22nd. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the stock. CarMax has an average rating of “Buy” and a consensus price target of $69.15.
Shares of CarMax (NYSE:KMX) opened at 65.99 on Tuesday. The company’s 50-day moving average is $64.97 and its 200-day moving average is $62.64. CarMax has a 12-month low of $47.50 and a 12-month high of $69.11. The stock has a market cap of $12.09 billion, a P/E ratio of 18.95 and a beta of 1.34.
CarMax (NYSE:KMX) last announced its quarterly earnings results on Wednesday, June 21st. The company reported $1.13 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.98 by $0.15. CarMax had a return on equity of 21.72% and a net margin of 4.07%. The company had revenue of $4.54 billion during the quarter, compared to the consensus estimate of $4.46 billion. During the same period in the previous year, the company posted $0.90 earnings per share. CarMax’s revenue for the quarter was up 10.1% on a year-over-year basis. On average, equities research analysts anticipate that CarMax will post $3.71 earnings per share for the current year.
In related news, SVP Mohammad Shamim sold 13,938 shares of the business’s stock in a transaction that occurred on Friday, July 28th. The stock was sold at an average price of $66.08, for a total transaction of $921,023.04. Following the completion of the sale, the senior vice president now directly owns 9,218 shares in the company, valued at $609,125.44. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Thomas J. Folliard sold 50,000 shares of the business’s stock in a transaction that occurred on Friday, June 23rd. The stock was sold at an average price of $61.41, for a total value of $3,070,500.00. Following the sale, the director now owns 509,166 shares of the company’s stock, valued at $31,267,884.06. The disclosure for this sale can be found here. Insiders sold 188,515 shares of company stock valued at $12,085,019 over the last 90 days. Company insiders own 1.70% of the company’s stock.
Several hedge funds have recently modified their holdings of KMX. Korea Investment CORP boosted its stake in shares of CarMax by 140.5% in the second quarter. Korea Investment CORP now owns 1,768 shares of the company’s stock valued at $111,000 after buying an additional 1,033 shares during the last quarter. State of Alaska Department of Revenue purchased a new stake in shares of CarMax during the second quarter valued at approximately $112,000. Bronfman E.L. Rothschild L.P. boosted its stake in shares of CarMax by 2.4% in the first quarter. Bronfman E.L. Rothschild L.P. now owns 2,095 shares of the company’s stock valued at $124,000 after buying an additional 49 shares during the last quarter. Seven Eight Capital LP purchased a new stake in shares of CarMax during the second quarter valued at approximately $133,000. Finally, YorkBridge Wealth Partners LLC boosted its stake in shares of CarMax by 1.3% in the second quarter. YorkBridge Wealth Partners LLC now owns 2,331 shares of the company’s stock valued at $149,000 after buying an additional 29 shares during the last quarter.
CarMax Company Profile
CarMax, Inc (CarMax) is a holding company. The Company is a retailer of used vehicles. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The Company’s CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF.
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