CarMax (NYSE:KMX) Lowered to "Hold" Rating by Seaport Res Ptn

Key Points

• CarMax has been downgraded from a "strong-buy" to a "hold" rating by Seaport Res Ptn, with FY2027 earnings estimates set at $3.91 EPS.
• The company reported quarterly earnings of $0.64 EPS, missing analysts' estimates of $1.03 EPS, and its revenue decreased 6.0% year-over-year.
• Research analysts have mixed ratings for CarMax, with a consensus target price of $62.15 and varying recommendations from strong buy to sell.

CarMax (NYSE:KMX - Get Free Report) was downgraded by research analysts at Seaport Res Ptn from a "strong-buy" rating to a "hold" rating in a report released on Sunday,Zacks.com reports. Seaport Res Ptn also issued estimates for CarMax's FY2027 earnings at $3.91 EPS.

A number of other research analysts also recently issued reports on KMX. Benchmark initiated coverage on CarMax in a report on Thursday, July 17th. They issued a "buy" rating and a $75.00 price target on the stock. Oppenheimer restated a "market perform" rating on shares of CarMax in a research note on Friday. Mizuho dropped their target price on CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a research note on Thursday, July 3rd. Robert W. Baird dropped their target price on CarMax from $90.00 to $60.00 and set an "outperform" rating on the stock in a research note on Friday. Finally, JPMorgan Chase & Co. dropped their target price on CarMax from $65.00 to $50.00 and set a "neutral" rating on the stock in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, CarMax has an average rating of "Hold" and a consensus target price of $62.15.

CarMax Trading Up 0.9%

Shares of NYSE:KMX opened at $45.25 on Friday. CarMax has a 12-month low of $42.75 and a 12-month high of $91.25. The business's fifty day simple moving average is $58.27 and its 200-day simple moving average is $64.55. The company has a market capitalization of $6.79 billion, a PE ratio of 13.27, a P/E/G ratio of 0.76 and a beta of 1.35. The company has a current ratio of 2.46, a quick ratio of 1.06 and a debt-to-equity ratio of 2.87.

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

Insiders Place Their Bets

In other CarMax news, EVP Jon G. Daniels sold 1,540 shares of the business's stock in a transaction dated Wednesday, July 2nd. The stock was sold at an average price of $70.64, for a total transaction of $108,785.60. Following the sale, the executive vice president owned 2,779 shares in the company, valued at approximately $196,308.56. The trade was a 35.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.70% of the company's stock.

Institutional Trading of CarMax

Several large investors have recently added to or reduced their stakes in KMX. Zions Bancorporation National Association UT purchased a new stake in CarMax during the 1st quarter valued at about $27,000. CYBER HORNET ETFs LLC acquired a new position in shares of CarMax in the 2nd quarter valued at about $28,000. MUFG Securities EMEA plc acquired a new position in shares of CarMax in the 2nd quarter valued at about $30,000. Accent Capital Management LLC acquired a new position in shares of CarMax in the 1st quarter valued at about $34,000. Finally, Strengthening Families & Communities LLC lifted its holdings in shares of CarMax by 93.1% in the 1st quarter. Strengthening Families & Communities LLC now owns 531 shares of the company's stock valued at $39,000 after buying an additional 256 shares during the period.

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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