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

Key Points

• Zacks Research downgraded CarMax from “strong buy” to “hold.” Across analysts, the stock carries a consensus “reduce” rating with an average price target of $51.
• CarMax exceeded quarterly expectations, reporting $1.31 in EPS versus the $0.96 estimate and $8.01 billion in revenue versus $7.42 billion expected. Revenue increased 6.2% year over year, though EPS declined from $1.38 in the prior-year period.
• CarMax shares opened at $58.41, down 0.7%, while insiders purchased 13,900 shares worth approximately $735,574 over the past 90 days.

CarMax (NYSE:KMX - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Wednesday, Zacks reports.

A number of other research firms have also weighed in on KMX. Robert W. Baird raised their price target on shares of CarMax from $48.00 to $55.00 and gave the company an "outperform" rating in a research report on Thursday, June 18th. Truist Financial upped their price objective on shares of CarMax from $47.00 to $50.00 and gave the stock a "hold" rating in a research report on Thursday, June 18th. Bank of America increased their price objective on shares of CarMax from $40.00 to $45.00 and gave the company an "underperform" rating in a research note on Wednesday, June 17th. Weiss Ratings raised shares of CarMax from a "sell (d)" rating to a "sell (d+)" rating in a research report on Monday, July 20th. Finally, Morgan Stanley boosted their target price on CarMax from $35.00 to $44.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 23rd. Two equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Reduce" and an average price target of $51.00.

CarMax Stock Down 0.7%

Shares of NYSE:KMX opened at $58.41 on Wednesday. The business's 50 day moving average is $59.43 and its 200 day moving average is $49.34. CarMax has a 12-month low of $30.26 and a 12-month high of $65.28. The stock has a market cap of $8.29 billion, a price-to-earnings ratio of 38.17, a PEG ratio of 2.71 and a beta of 1.17. The company has a quick ratio of 0.82, a current ratio of 2.70 and a debt-to-equity ratio of 2.87.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings data on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.35. The business had revenue of $8.01 billion for the quarter, compared to analysts' expectations of $7.42 billion. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The business's revenue was up 6.2% on a year-over-year basis. During the same period last year, the business earned $1.38 EPS. On average, sell-side analysts forecast that CarMax will post 2.72 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Peter J. Bensen bought 2,500 shares of CarMax stock in a transaction dated Monday, June 22nd. The stock was purchased at an average cost of $52.20 per share, with a total value of $130,500.00. Following 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 ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Sona Chawla purchased 2,000 shares of the firm's stock in a transaction dated Thursday, June 25th. The shares were bought at an average price of $53.39 per share, with a total value of $106,780.00. Following the purchase, the director owned 21,702 shares in the company, valued at $1,158,669.78. The trade was a 10.15% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders purchased 13,900 shares of company stock worth $735,574. Insiders own 1.01% of the company's stock.

Hedge Funds Weigh In On CarMax

Institutional investors have recently bought and sold shares of the company. Jupiter Topco LLC bought a new position in shares of CarMax in the second quarter valued at approximately $245,676,000. Janus Henderson Group PLC boosted its holdings in CarMax by 1.1% in the 1st quarter. Janus Henderson Group PLC now owns 4,580,807 shares of the company's stock valued at $190,471,000 after purchasing an additional 49,987 shares during the period. Primecap Management Co. CA bought a new position in CarMax in the 2nd quarter valued at $230,548,000. Dimensional Fund Advisors LP increased its holdings in shares of CarMax by 7.3% in the first quarter. Dimensional Fund Advisors LP now owns 4,275,663 shares of the company's stock worth $177,767,000 after purchasing an additional 289,768 shares during the period. Finally, Norges Bank bought a new position in shares of CarMax in the fourth quarter worth $159,232,000.

CarMax Company Profile

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.

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