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

Key Points

• CarMax has hit a new 52-week low share price of $54.53, representing a decline from its previous close of $55.98, with significant trading volume at over 3 million shares.
• Wall Street analysts exhibit mixed sentiments, with two analysts rating it as a sell, three as hold, and nine as buy, resulting in an average rating of "Moderate Buy" and a consensus price target of $83.67.
• CarMax recently reported an earnings per share (EPS) of $1.38, beating expectations, although its quarterly revenue fell short of analyst estimates at $7.55 billion.

CarMax, Inc. (NYSE:KMX - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $54.53 and last traded at $54.71, with a volume of 3117716 shares trading hands. The stock had previously closed at $55.98.

Analysts Set New Price Targets

KMX has been the subject of a number of research analyst reports. Truist Financial increased their price target on CarMax from $72.00 to $74.00 and gave the company a "hold" rating in a research note on Monday, June 23rd. Needham & Company LLC reissued a "buy" rating and set a $92.00 target price on shares of CarMax in a research report on Monday, June 23rd. JPMorgan Chase & Co. raised shares of CarMax from an "underweight" rating to a "neutral" rating and decreased their price target for the stock from $65.00 to $58.00 in a report on Wednesday. Cfra Research upgraded shares of CarMax to a "strong-buy" rating in a research note on Thursday, April 10th. Finally, Mizuho cut their target price on CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a research report on Thursday, July 3rd. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $83.08.

CarMax Trading Down 1.7%

The company has a current ratio of 2.39, a quick ratio of 0.80 and a debt-to-equity ratio of 2.86. The firm has a market cap of $8.29 billion, a PE ratio of 15.26, a price-to-earnings-growth ratio of 0.91 and a beta of 1.36. The company has a 50-day simple moving average of $64.25 and a 200 day simple moving average of $70.96.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings results on Friday, June 20th. The company reported $1.38 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $7.55 billion for the quarter, compared to the consensus estimate of $7.58 billion. During the same period in the prior year, the firm posted $0.97 earnings per share. The firm's quarterly revenue was up 6.1% compared to the same quarter last year. As a group, sell-side analysts forecast that CarMax, Inc. will post 3.23 earnings per share for the current fiscal year.

Insider Buying and Selling at CarMax

In related news, EVP Jon G. Daniels sold 1,540 shares of the company's stock in a transaction dated 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 owned 2,779 shares of the company's stock, valued at approximately $196,308.56. This represents a 35.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On CarMax

Several institutional investors and hedge funds have recently added to or reduced their stakes in KMX. O Shaughnessy Asset Management LLC increased its stake in shares of CarMax by 25.4% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 8,877 shares of the company's stock worth $726,000 after purchasing an additional 1,798 shares in the last quarter. Resona Asset Management Co. Ltd. acquired a new stake in CarMax in the 4th quarter worth about $3,911,000. Aviva PLC raised its holdings in shares of CarMax by 851.1% during the fourth quarter. Aviva PLC now owns 93,260 shares of the company's stock valued at $7,625,000 after acquiring an additional 83,454 shares during the last quarter. Russell Investments Group Ltd. lifted its position in shares of CarMax by 67.2% in the fourth quarter. Russell Investments Group Ltd. now owns 68,958 shares of the company's stock valued at $5,649,000 after acquiring an additional 27,724 shares in the last quarter. Finally, Cerity Partners LLC lifted its position in shares of CarMax by 64.2% in the fourth quarter. Cerity Partners LLC now owns 62,962 shares of the company's stock valued at $5,103,000 after acquiring an additional 24,609 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.