CarMax (NYSE:KMX) Issues Earnings Results

CarMax (NYSE:KMX - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.58 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.66 by ($0.08), RTT News reports. CarMax had a return on equity of 7.49% and a net margin of 1.77%. The firm had revenue of $6 billion during the quarter, compared to analysts' expectations of $5.93 billion. During the same period in the prior year, the firm posted $0.32 earnings per share. CarMax's revenue for the quarter was up 6.7% compared to the same quarter last year.

CarMax Price Performance

Shares of NYSE:KMX traded down $0.57 during trading on Tuesday, reaching $66.93. The stock had a trading volume of 1,306,283 shares, compared to its average volume of 2,082,176. The business has a fifty day moving average price of $78.28 and a 200-day moving average price of $79.10. CarMax has a 1-year low of $63.23 and a 1-year high of $91.25. The company has a debt-to-equity ratio of 2.92, a quick ratio of 0.55 and a current ratio of 2.30. The stock has a market cap of $10.29 billion, a PE ratio of 22.69, a PEG ratio of 1.67 and a beta of 1.58.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on KMX shares. JPMorgan Chase & Co. cut their price target on shares of CarMax from $72.00 to $65.00 and set an "underweight" rating on the stock in a research note on Thursday, March 27th. Stephens raised shares of CarMax from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $86.00 to $90.00 in a report on Wednesday, March 26th. Wedbush reduced their target price on shares of CarMax from $100.00 to $90.00 and set an "outperform" rating for the company in a report on Friday. Evercore ISI decreased their target price on shares of CarMax from $107.00 to $105.00 and set an "outperform" rating for the company in a research report on Tuesday, March 11th. Finally, Truist Financial lifted their price objective on CarMax from $72.00 to $88.00 and gave the company a "hold" rating in a research note on Friday, December 20th. Three research analysts have rated the stock with a sell rating, three have issued a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $87.73.

Insiders Place Their Bets

In related news, CFO Enrique N. Mayor-Mora sold 5,000 shares of CarMax stock in a transaction that occurred on Wednesday, January 15th. The stock was sold at an average price of $81.43, for a total transaction of $407,150.00. Following the transaction, the chief financial officer now owns 20,260 shares in the company, valued at approximately $1,649,771.80. This trade represents a 19.79 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, VP Jill A. Livesay sold 13,009 shares of the business's stock in a transaction on Wednesday, January 15th. The stock was sold at an average price of $81.00, for a total value of $1,053,729.00. Following the transaction, the vice president now directly owns 9,448 shares in the company, valued at $765,288. This trade represents a 57.93 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 22,878 shares of company stock valued at $1,872,699 in the last 90 days. 1.66% of the stock is owned by insiders.

About CarMax

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.