CarMax (NYSE:KMX) Downgraded to "Sell" Rating by Wall Street Zen

Key Points

• CarMax was downgraded from a "hold" to a "sell" rating by analysts at Wall Street Zen in a report issued to investors.
• Recent earnings results showed CarMax missed consensus estimates for both earnings per share and revenue, with quarterly revenue down 6.0% compared to the same quarter last year.
• Several research firms, including Mizuho and Wedbush, have cut their price targets for CarMax shares, reflecting a negative outlook for the company's stock.

CarMax (NYSE:KMX - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Friday.

Several other research firms have also recently weighed in on KMX. Mizuho reduced their price target on shares of CarMax from $80.00 to $78.00 and set a "neutral" rating for the company in a report on Thursday, July 3rd. Wedbush lowered shares of CarMax from an "outperform" rating to a "neutral" rating and cut their price objective for the stock from $84.00 to $54.00 in a research report on Thursday, September 25th. Royal Bank Of Canada cut their price objective on shares of CarMax from $81.00 to $59.00 and set an "outperform" rating on the stock in a research report on Friday, September 26th. Oppenheimer reissued a "market perform" rating on shares of CarMax in a research report on Friday, September 26th. Finally, Stephens cut their price objective on shares of CarMax from $74.00 to $53.00 and set an "overweight" rating on the stock in a research report on Friday, September 26th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $60.31.

CarMax Stock Up 0.8%

Shares of CarMax stock traded up $0.35 on Friday, hitting $46.42. The company had a trading volume of 2,831,022 shares, compared to its average volume of 5,295,436. The firm has a market capitalization of $6.82 billion, a P/E ratio of 13.61, a P/E/G ratio of 0.87 and a beta of 1.27. CarMax has a twelve month low of $42.75 and a twelve 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. The stock has a 50-day moving average of $56.99 and a 200-day moving average of $63.94.

CarMax (NYSE:KMX - Get Free Report) last released its quarterly earnings results on Thursday, September 25th. The company reported $0.64 earnings per share for the quarter, missing the consensus estimate of $1.03 by ($0.39). The company had revenue of $6.59 billion during the quarter, compared to analyst estimates of $7.07 billion. CarMax had a net margin of 1.98% and a return on equity of 8.51%. The firm's quarterly revenue was down 6.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.85 EPS. Research analysts predict that CarMax will post 3.23 earnings per share for the current year.

Institutional Trading of CarMax

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Zions Bancorporation National Association UT bought a new stake in CarMax during the first quarter worth $27,000. CYBER HORNET ETFs LLC bought a new stake in CarMax during the second quarter worth $28,000. MUFG Securities EMEA plc bought a new stake in CarMax during the second quarter worth $30,000. Accent Capital Management LLC bought a new stake in CarMax during the first quarter worth $34,000. Finally, Strengthening Families & Communities LLC raised its position in CarMax by 93.1% during the first quarter. Strengthening Families & Communities LLC now owns 531 shares of the company's stock worth $39,000 after acquiring an additional 256 shares in the last quarter.

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.

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