CarMax (NYSE:KMX) Hits New 1-Year Low - Here's What Happened

CarMax, Inc. (NYSE:KMX - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $61.09 and last traded at $60.94, with a volume of 765507 shares trading hands. The stock had previously closed at $62.83.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Truist Financial boosted 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. Cfra Research raised CarMax to a "strong-buy" rating in a research note on Thursday, April 10th. Stephens upgraded 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 research report on Wednesday, March 26th. Evercore ISI decreased their price objective on CarMax from $85.00 to $84.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 28th. Finally, Robert W. Baird decreased their price objective on CarMax from $95.00 to $90.00 and set an "outperform" rating on the stock in a research report on Friday, April 11th. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $83.67.

CarMax Stock Performance

The company has a debt-to-equity ratio of 2.86, a current ratio of 2.39 and a quick ratio of 0.80. The firm has a fifty day moving average price of $65.87 and a two-hundred day moving average price of $72.71. The stock has a market capitalization of $9.04 billion, a PE ratio of 16.64, a P/E/G ratio of 1.03 and a beta of 1.38.

CarMax (NYSE:KMX - Get Free Report) last announced its earnings results on Friday, June 20th. The company reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.18 by $0.20. The business had revenue of $7.55 billion for the quarter, compared to analysts' expectations of $7.58 billion. CarMax had a return on equity of 9.11% and a net margin of 2.09%. The business's revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.97 EPS. Research analysts expect that CarMax, Inc. will post 3.23 EPS for the current year.

Insider Activity at CarMax

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

Hedge Funds Weigh In On CarMax

Several institutional investors and hedge funds have recently modified their holdings of the business. Kovitz Investment Group Partners LLC increased its stake in shares of CarMax by 348.0% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 6,595,067 shares of the company's stock valued at $539,213,000 after purchasing an additional 5,122,850 shares in the last quarter. Norges Bank purchased a new position in shares of CarMax in the 4th quarter valued at about $423,187,000. Janus Henderson Group PLC increased its stake in shares of CarMax by 0.6% in the 4th quarter. Janus Henderson Group PLC now owns 4,671,950 shares of the company's stock valued at $381,978,000 after purchasing an additional 29,715 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of CarMax by 1.3% in the 4th quarter. Geode Capital Management LLC now owns 3,710,267 shares of the company's stock valued at $302,564,000 after purchasing an additional 47,058 shares in the last quarter. Finally, Baird Financial Group Inc. increased its stake in shares of CarMax by 7.1% in the 1st quarter. Baird Financial Group Inc. now owns 3,093,632 shares of the company's stock valued at $241,056,000 after purchasing an additional 206,106 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.

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