CarMax (NYSE:KMX) Cut to Sell at Wall Street Zen

Wall Street Zen cut shares of CarMax (NYSE:KMX) from a hold rating to a sell rating in a report published on Saturday.

A number of other research analysts have also recently weighed in on KMX. Truist Financial lifted their price objective on shares of CarMax from $35.00 to $37.00 and gave the company a “hold” rating in a report on Thursday, December 18th. Morgan Stanley set a $35.00 target price on CarMax in a research report on Monday, December 8th. Benchmark restated a “hold” rating on shares of CarMax in a research note on Tuesday, December 16th. Robert W. Baird increased their price target on CarMax from $44.00 to $48.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 18th. Finally, Bank of America raised their price objective on CarMax from $27.00 to $31.00 and gave the company an “underperform” rating in a report on Friday, December 19th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twelve have issued a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Reduce” and an average price target of $39.21.

CarMax Trading Down 0.3%

CarMax stock opened at $41.70 on Friday. The firm has a market cap of $5.91 billion, a PE ratio of 13.76, a P/E/G ratio of 0.99 and a beta of 1.35. CarMax has a 12 month low of $30.26 and a 12 month high of $82.79. The stock’s 50 day simple moving average is $44.42 and its two-hundred day simple moving average is $44.32. The company has a current ratio of 1.99, a quick ratio of 0.51 and a debt-to-equity ratio of 2.74.

CarMax (NYSE:KMX) last posted its earnings results on Thursday, December 18th. The company reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.12. CarMax had a net margin of 1.77% and a return on equity of 7.72%. The firm had revenue of $5.79 billion during the quarter, compared to analyst estimates of $5.66 billion. During the same period in the previous year, the firm earned $0.81 EPS. The business’s quarterly revenue was down 6.9% on a year-over-year basis. Analysts anticipate that CarMax will post 3.23 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC increased its stake in CarMax by 151.8% during the 4th quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock worth $306,429,000 after buying an additional 4,780,903 shares in the last quarter. SRS Investment Management LLC raised its holdings in shares of CarMax by 1,717.5% during the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock valued at $217,845,000 after acquiring an additional 5,327,603 shares during the last quarter. Norges Bank purchased a new position in shares of CarMax in the fourth quarter valued at approximately $159,232,000. Dimensional Fund Advisors LP lifted its position in shares of CarMax by 8.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,985,895 shares of the company’s stock valued at $154,023,000 after acquiring an additional 300,694 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its stake in shares of CarMax by 73.7% in the third quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock worth $158,074,000 after acquiring an additional 1,494,205 shares during the last quarter.

About CarMax

CarMax (NYSE: KMX) is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company’s inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax’s retail locations or browse the company’s online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.