CarMax (NYSE:KMX) Downgraded by Zacks Research to Strong Sell

Key Points

• CarMax was downgraded by Zacks Research from a "hold" to a "strong sell" rating, reflecting a negative outlook on the stock's performance.
• Several brokerages have also reduced their price targets for CarMax, with Robert W. Baird lowering it from $90 to $60 and Morgan Stanley cutting theirs from $80 to $56.
• In its latest earnings report, CarMax missed analysts' EPS estimates by $0.39 and experienced a 6% decline in revenue compared to the previous year.

CarMax (NYSE:KMX - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Thursday,Zacks.com reports.

A number of other brokerages have also issued reports on KMX. Robert W. Baird dropped their price target on shares of CarMax from $90.00 to $60.00 and set an "outperform" rating on the stock in a research note on Friday, September 26th. Morgan Stanley dropped their price target on shares of CarMax from $80.00 to $56.00 and set an "overweight" rating on the stock in a research note on Wednesday. Benchmark initiated coverage on shares of CarMax in a research note on Thursday, July 17th. They set a "buy" rating and a $75.00 price target on the stock. Oppenheimer reaffirmed a "market perform" rating on shares of CarMax in a research note on Friday, September 26th. Finally, Wall Street Zen cut shares of CarMax from a "hold" rating to a "sell" rating in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, CarMax currently has an average rating of "Hold" and an average price target of $56.58.

CarMax Stock Performance

Shares of CarMax stock opened at $46.42 on Thursday. The firm's fifty day simple moving average is $56.99 and its 200-day simple moving average is $63.94. The stock has a market capitalization of $6.82 billion, a price-to-earnings ratio of 13.61, a PEG ratio of 0.87 and a beta of 1.27. CarMax has a 12 month low of $42.75 and a 12 month high of $91.25. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.46 and a quick ratio of 1.06.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings data on Thursday, September 25th. The company reported $0.64 EPS for the quarter, missing analysts' consensus estimates of $1.03 by ($0.39). The firm 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%.The firm's quarterly revenue was down 6.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.85 EPS. As a group, equities analysts forecast that CarMax will post 3.23 earnings per share for the current year.

Institutional Investors Weigh In On CarMax

Large investors have recently added to or reduced their stakes in the business. Zions Bancorporation National Association UT acquired a new stake in CarMax in the 1st quarter valued at about $27,000. CYBER HORNET ETFs LLC purchased a new position in CarMax in the 2nd quarter valued at about $28,000. Accent Capital Management LLC purchased a new position in CarMax in the 1st quarter valued at about $34,000. MUFG Securities EMEA plc purchased a new position in CarMax in the 2nd quarter valued at about $30,000. Finally, Strengthening Families & Communities LLC lifted its holdings in CarMax by 93.1% in the 1st quarter. Strengthening Families & Communities LLC now owns 531 shares of the company's stock valued at $39,000 after purchasing an additional 256 shares in the last quarter.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.