CarMax (NYSE:KMX) Releases Earnings Results, Misses Expectations By $0.39 EPS

Key Points

• CarMax reported a quarterly earnings per share (EPS) of $0.64, significantly missing the consensus estimate of $1.05 by $0.41, and generated revenue of $6.59 billion, below the expected $7.07 billion.
• The company's stock opened at $57.25 and has experienced a one-year price range between $54.53 and $91.25, with a market cap of $8.59 billion.
• Several institutional investors made notable increases to their stakes in CarMax, with Worldquant Millennium Advisors raising their stake by 222.2% and Engineers Gate Manager LP increasing theirs by 815.2% during the 2nd quarter.

CarMax (NYSE:KMX - Get Free Report) issued its earnings results on Thursday. The company reported $0.64 EPS for the quarter, missing the consensus estimate of $1.03 by ($0.39), RTT News reports. CarMax had a net margin of 2.09% and a return on equity of 9.11%. The firm had revenue of $6.59 billion during the quarter, compared to the consensus estimate of $7.07 billion. During the same period in the previous year, the company posted $0.85 EPS.

CarMax Price Performance

KMX stock opened at $57.25 on Thursday. The company has a quick ratio of 0.80, a current ratio of 2.39 and a debt-to-equity ratio of 2.86. CarMax has a 12 month low of $54.53 and a 12 month high of $91.25. The firm has a market cap of $8.59 billion, a P/E ratio of 15.82, a P/E/G ratio of 0.94 and a beta of 1.35. The company's 50-day moving average price is $59.28 and its two-hundred day moving average price is $65.20.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Needham & Company LLC reissued a "buy" rating and set a $92.00 price objective on shares of CarMax in a research report on Monday, June 23rd. Morgan Stanley began coverage on shares of CarMax in a report on Tuesday, July 1st. They set an "overweight" rating and a $80.00 target price for the company. Royal Bank Of Canada increased their target price on shares of CarMax from $80.00 to $81.00 and gave the stock an "outperform" rating in a report on Monday, June 23rd. Truist Financial increased their target price on shares of CarMax from $72.00 to $74.00 and gave the stock a "hold" rating in a report on Monday, June 23rd. Finally, Benchmark initiated coverage on shares of CarMax in a report on Thursday, July 17th. They set a "buy" rating and a $75.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $81.50.

Insider Buying and Selling at CarMax

In other news, EVP Jon G. Daniels sold 1,540 shares of the firm's stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $70.64, for a total value of $108,785.60. Following the sale, the executive vice president directly owned 2,779 shares in the company, valued at approximately $196,308.56. This trade represents a 35.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 1.70% of the company's stock.

Institutional Investors Weigh In On CarMax

Institutional investors have recently added to or reduced their stakes in the business. Sivia Capital Partners LLC grew its holdings in CarMax by 256.7% during the 2nd quarter. Sivia Capital Partners LLC now owns 9,324 shares of the company's stock worth $627,000 after acquiring an additional 6,710 shares during the last quarter. Headlands Technologies LLC acquired a new position in shares of CarMax in the 2nd quarter worth approximately $634,000. Jump Financial LLC acquired a new position in shares of CarMax in the 2nd quarter worth approximately $600,000. Boothbay Fund Management LLC acquired a new position in shares of CarMax in the 2nd quarter worth approximately $534,000. Finally, Tower Research Capital LLC TRC lifted its position in shares of CarMax by 85.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,613 shares of the company's stock worth $444,000 after purchasing an additional 3,046 shares during the period.

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.