CarMax (NYSE:KMX) Given "Sell (D)" Rating at Weiss Ratings

Key Points

• CarMax's stock has been reaffirmed with a "sell (D)" rating by Weiss Ratings, indicating concerns about its performance.
• Multiple analysts have downgraded CarMax's ratings and price targets, with an average target now at $54.42.
• The company reported earnings of $0.64 per share, missing consensus estimates by ($0.39), highlighting a significant decline in revenue from the previous year.

CarMax (NYSE:KMX - Get Free Report)'s stock had its "sell (d)" rating reaffirmed by investment analysts at Weiss Ratings in a research note issued to investors on Tuesday,Weiss Ratings reports.

Other equities research analysts also recently issued reports about the stock. Stephens downgraded shares of CarMax from an "overweight" rating to an "equal weight" rating and reduced their price target for the company from $53.00 to $42.00 in a research note on Tuesday, October 7th. JPMorgan Chase & Co. dropped their price objective on shares of CarMax from $65.00 to $50.00 and set a "neutral" rating on the stock in a research report on Friday, September 26th. Truist Financial dropped their price objective on shares of CarMax from $74.00 to $47.00 and set a "hold" 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, Robert W. Baird dropped their price objective on shares of CarMax from $90.00 to $60.00 and set an "outperform" rating on the stock in a research report on Friday, September 26th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eight have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $54.42.

CarMax Trading Up 0.6%

NYSE:KMX traded up $0.27 on Tuesday, hitting $43.96. The stock had a trading volume of 1,229,782 shares, compared to its average volume of 3,187,594. The company has a quick ratio of 1.06, a current ratio of 2.46 and a debt-to-equity ratio of 2.87. The stock has a market cap of $6.46 billion, a price-to-earnings ratio of 12.90, a PEG ratio of 0.82 and a beta of 1.27. The company has a fifty day moving average price of $55.43 and a two-hundred day moving average price of $62.58. CarMax has a 1-year low of $42.75 and a 1-year high of $91.25.

CarMax (NYSE:KMX - Get Free Report) last posted its 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 firm 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 business's revenue for the quarter was down 6.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.85 earnings per share. Equities research analysts expect that CarMax will post 3.23 earnings per share for the current fiscal year.

Institutional Trading of CarMax

Large investors have recently bought and sold shares of the business. Zions Bancorporation National Association UT acquired a new stake in CarMax during the 1st quarter worth $27,000. CYBER HORNET ETFs LLC acquired a new stake in CarMax during the 2nd quarter worth $28,000. Accent Capital Management LLC acquired a new stake in CarMax during the 1st quarter worth $34,000. MUFG Securities EMEA plc acquired a new stake in CarMax during the 2nd quarter worth $30,000. Finally, Strengthening Families & Communities LLC boosted its stake in CarMax by 93.1% during the 1st quarter. Strengthening Families & Communities LLC now owns 531 shares of the company's stock worth $39,000 after purchasing an additional 256 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.

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