CarMax (NYSE:KMX) Hits New 12-Month Low - Here's Why

Key Points

• CarMax shares hit a new 52-week low, trading as low as $58.92, signaling potential concerns about the company's performance.
• Analysts have mixed ratings on CarMax, with a consensus rating of "Moderate Buy" and an average price target of $83.67, indicating some confidence in future growth.
• The company reported revenue of $7.55 billion for the last quarter, which was below analyst expectations, although it marked a 6.1% year-over-year increase in revenue.

Shares of CarMax, Inc. (NYSE:KMX - Get Free Report) hit a new 52-week low during trading on Wednesday . The stock traded as low as $58.92 and last traded at $59.07, with a volume of 2802092 shares trading hands. The stock had previously closed at $60.26.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on KMX. Royal Bank Of Canada upped their target price on shares of CarMax from $80.00 to $81.00 and gave the stock an "outperform" rating in a research note on Monday, June 23rd. Needham & Company LLC reaffirmed a "buy" rating and set a $92.00 price target on shares of CarMax in a report on Monday, June 23rd. Morgan Stanley assumed coverage on CarMax in a research report on Tuesday, July 1st. They set an "overweight" rating and a $80.00 price objective on the stock. Benchmark assumed coverage on CarMax in a research report on Thursday, July 17th. They issued a "buy" rating and a $75.00 target price for the company. Finally, Wall Street Zen upgraded shares of CarMax from a "sell" rating to a "hold" rating in a research note on Wednesday, May 7th. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating, nine have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, CarMax has a consensus rating of "Moderate Buy" and a consensus price target of $83.67.

CarMax Stock Down 1.1%

The company has a market capitalization of $8.40 billion, a PE ratio of 15.46, a price-to-earnings-growth ratio of 0.92 and a beta of 1.36. The company's fifty day moving average is $64.95 and its 200-day moving average is $71.78. The company has a debt-to-equity ratio of 2.86, a quick ratio of 0.80 and a current ratio of 2.39.

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

Insider Transactions at CarMax

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

Institutional Trading of CarMax

Hedge funds have recently bought and sold shares of the stock. First Pacific Advisors LP grew its holdings in CarMax by 0.6% during the 2nd quarter. First Pacific Advisors LP now owns 2,431,244 shares of the company's stock valued at $163,404,000 after buying an additional 15,270 shares in the last quarter. Redmond Asset Management LLC lifted its position in CarMax by 1.0% during the second quarter. Redmond Asset Management LLC now owns 51,298 shares of the company's stock valued at $3,448,000 after purchasing an additional 495 shares during the last quarter. SYM FINANCIAL Corp lifted its position in CarMax by 169.1% during the second quarter. SYM FINANCIAL Corp now owns 6,950 shares of the company's stock valued at $467,000 after purchasing an additional 4,367 shares during the last quarter. Teacher Retirement System of Texas grew its stake in shares of CarMax by 69.6% in the 2nd quarter. Teacher Retirement System of Texas now owns 38,156 shares of the company's stock worth $2,564,000 after buying an additional 15,661 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd bought a new stake in shares of CarMax in the 2nd quarter worth about $5,758,000.

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.