CarMax, Inc. (NYSE:KMX) Given Average Rating of "Hold" by Brokerages

Key Points

• CarMax, Inc. has received a consensus rating of "Hold" from analysts, with three sell ratings, seven hold ratings, six buy ratings, and one strong buy rating.
• The company's recent earnings report showed a missed earnings estimate of $0.64 per share, compared to the consensus estimate of $1.03, with revenue falling short at $6.59 billion.
• Recent downgrades from multiple analysts have impacted CarMax's stock price target, with estimates now ranging from a low of $54 to a high of $60.

Shares of CarMax, Inc. (NYSE:KMX - Get Free Report) have received a consensus rating of "Hold" from the seventeen ratings firms that are presently covering the firm, MarketBeat.com reports. Three analysts have rated the stock with a sell recommendation, seven have issued a hold recommendation, six have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price objective among analysts that have covered the stock in the last year is $56.5833.

A number of equities research analysts recently commented on the company. Wall Street Zen lowered CarMax from a "hold" rating to a "sell" rating in a research report on Friday. Wedbush lowered CarMax from an "outperform" rating to a "neutral" rating and lowered their price objective for the stock from $84.00 to $54.00 in a research report on Thursday, September 25th. Seaport Res Ptn lowered CarMax from a "strong-buy" rating to a "hold" rating in a research report on Sunday, September 28th. Zacks Research lowered CarMax from a "hold" rating to a "strong sell" rating in a research report on Thursday, October 2nd. Finally, Robert W. Baird lowered their price objective on CarMax from $90.00 to $60.00 and set an "outperform" rating on the stock in a research report on Friday, September 26th.

CarMax Price Performance

Shares of KMX stock opened at $46.86 on Tuesday. CarMax has a fifty-two week low of $42.75 and a fifty-two week high of $91.25. The firm has a market capitalization of $6.88 billion, a price-to-earnings ratio of 13.74, a PEG ratio of 0.87 and a beta of 1.27. The company has a debt-to-equity ratio of 2.87, a quick ratio of 1.06 and a current ratio of 2.46. The stock's 50-day simple moving average is $56.72 and its 200-day simple moving average is $63.67.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings results on Thursday, September 25th. The company reported $0.64 earnings per share for the quarter, missing analysts' consensus estimates of $1.03 by ($0.39). The business had revenue of $6.59 billion for the quarter, compared to analysts' expectations of $7.07 billion. CarMax had a return on equity of 8.51% and a net margin of 1.98%.CarMax's revenue was down 6.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.85 EPS. As a group, equities analysts forecast that CarMax will post 3.23 earnings per share for the current fiscal year.

Institutional Investors Weigh In On CarMax

Several hedge funds have recently bought and sold shares of KMX. Norges Bank purchased a new stake in CarMax in the 2nd quarter worth approximately $208,144,000. AQR Capital Management LLC raised its stake in shares of CarMax by 195.3% during the 2nd quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company's stock worth $298,107,000 after buying an additional 2,947,996 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in shares of CarMax by 1,410.5% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 2,028,718 shares of the company's stock worth $136,350,000 after buying an additional 1,894,408 shares during the period. The Manufacturers Life Insurance Company raised its stake in shares of CarMax by 795.5% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,846,406 shares of the company's stock worth $124,097,000 after buying an additional 1,640,219 shares during the period. Finally, Fuller & Thaler Asset Management Inc. raised its stake in shares of CarMax by 626.1% during the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 903,024 shares of the company's stock worth $70,364,000 after buying an additional 778,652 shares during the period.

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.

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