CarMax (NYSE:KMX) Rating Lowered to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded CarMax from a "hold" to a "sell" in a research note issued Saturday.
• Analyst coverage is mixed—1 Buy, 12 Hold and 5 Sell—giving CarMax an average rating of "Reduce" and an average price target of $41.21.
• CarMax recently beat estimates with $0.34 EPS (vs. $0.22 expected) and $5.95B revenue, but its net margin is only 0.96% and revenue was down 1% year‑over‑year, with shares trading around $40.90 (50‑day SMA $42.64, 200‑day SMA $41.93).

CarMax (NYSE:KMX - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

Other analysts also recently issued research reports about the stock. Royal Bank Of Canada reissued a "sector perform" rating and issued a $41.00 price objective on shares of CarMax in a research note on Wednesday. Wedbush decreased their price target on shares of CarMax from $40.00 to $36.00 and set a "neutral" rating for the company in a research note on Friday, December 19th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of CarMax in a research note on Wednesday, April 8th. Robert W. Baird lifted their price target on shares of CarMax from $44.00 to $48.00 and gave the company an "outperform" rating in a research note on Wednesday, February 18th. Finally, JPMorgan Chase & Co. lifted their price target on shares of CarMax from $28.00 to $35.00 and gave the company an "underweight" rating in a research note on Wednesday. One investment analyst has rated the stock with a Buy rating, twelve have issued a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $41.21.

CarMax Stock Up 1.0%

Shares of NYSE KMX opened at $40.90 on Friday. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.20 and a quick ratio of 0.51. The company has a market cap of $5.80 billion, a P/E ratio of 25.56, a PEG ratio of 1.12 and a beta of 1.30. CarMax has a 1 year low of $30.26 and a 1 year high of $71.99. The firm has a 50-day simple moving average of $42.64 and a two-hundred day simple moving average of $41.93.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings data on Tuesday, April 14th. The company reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.12. The business had revenue of $5.95 billion during the quarter, compared to the consensus estimate of $5.65 billion. CarMax had a net margin of 0.96% and a return on equity of 7.00%. The firm's quarterly revenue was down 1.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.58 earnings per share. Research analysts anticipate that CarMax will post 3.23 earnings per share for the current year.

Hedge Funds Weigh In On CarMax

Institutional investors and hedge funds have recently bought and sold shares of the company. CYBER HORNET ETFs LLC purchased a new position in CarMax in the second quarter worth $28,000. MUFG Securities EMEA plc purchased a new position in CarMax in the second quarter worth $30,000. Huntington National Bank grew its holdings in CarMax by 62.4% in the fourth quarter. Huntington National Bank now owns 690 shares of the company's stock worth $27,000 after purchasing an additional 265 shares during the last quarter. Center for Financial Planning Inc. purchased a new position in CarMax in the third quarter worth $31,000. Finally, Advisory Services Network LLC purchased a new position in CarMax in the third quarter worth $32,000.

About CarMax

CarMax NYSE: KMX is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company's inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax's retail locations or browse the company's online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.

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