CarMax (NYSE:KMX) Trading Down 4.2% - Here's Why

CarMax, Inc. (NYSE:KMX - Get Free Report) shares fell 4.2% during mid-day trading on Monday . The company traded as low as $65.84 and last traded at $65.70. 641,286 shares traded hands during trading, a decline of 72% from the average session volume of 2,327,784 shares. The stock had previously closed at $68.57.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Cfra Research upgraded CarMax to a "strong-buy" rating in a research report on Thursday, April 10th. Robert W. Baird decreased their price objective on shares of CarMax from $95.00 to $90.00 and set an "outperform" rating for the company in a report on Friday, April 11th. Stephens upgraded shares of CarMax from an "equal weight" rating to an "overweight" rating and raised their price objective for the stock from $86.00 to $90.00 in a report on Wednesday, March 26th. Needham & Company LLC reissued a "buy" rating and issued a $92.00 target price on shares of CarMax in a research report on Monday. Finally, Truist Financial upped their price target on CarMax from $72.00 to $74.00 and gave the stock a "hold" rating in a research note on Monday. Two analysts have rated the stock with a sell rating, four have given a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $85.10.

CarMax Trading Down 3.6%

The stock has a fifty day simple moving average of $65.60 and a 200 day simple moving average of $75.35. The firm has a market capitalization of $10.09 billion, a P/E ratio of 18.27, a PEG ratio of 1.14 and a beta of 1.38. The company has a quick ratio of 0.80, a current ratio of 2.39 and a debt-to-equity ratio of 2.86.

CarMax (NYSE:KMX - Get Free Report) last posted 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 firm had revenue of $7.55 billion during the quarter, compared to analyst estimates of $7.58 billion. During the same period last year, the firm posted $0.97 earnings per share. CarMax's revenue for the quarter was up 6.1% compared to the same quarter last year. As a group, research analysts forecast that CarMax, Inc. will post 3.23 EPS for the current year.

Insider Buying and Selling

In other CarMax news, Director Mitchell D. Steenrod purchased 1,300 shares of the firm's stock in a transaction that occurred on Thursday, April 24th. The stock was purchased at an average cost of $65.49 per share, with a total value of $85,137.00. Following the purchase, the director now owns 33,577 shares of the company's stock, valued at approximately $2,198,957.73. The trade was a 4.03% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 1.70% of the stock is owned by corporate insiders.

Institutional Trading of CarMax

Hedge funds and other institutional investors have recently bought and sold shares of the business. Sequoia Financial Advisors LLC raised its holdings in shares of CarMax by 10.6% in the 4th quarter. Sequoia Financial Advisors LLC now owns 3,191 shares of the company's stock valued at $261,000 after purchasing an additional 307 shares in the last quarter. Jones Financial Companies Lllp boosted its position in CarMax by 36.6% during the 4th quarter. Jones Financial Companies Lllp now owns 5,211 shares of the company's stock valued at $426,000 after acquiring an additional 1,396 shares in the last quarter. B. Metzler seel. Sohn & Co. AG increased its holdings in shares of CarMax by 128.6% in the 4th quarter. B. Metzler seel. Sohn & Co. AG now owns 8,793 shares of the company's stock valued at $719,000 after acquiring an additional 4,947 shares during the period. Farther Finance Advisors LLC increased its holdings in shares of CarMax by 138.3% in the 1st quarter. Farther Finance Advisors LLC now owns 2,397 shares of the company's stock valued at $189,000 after acquiring an additional 1,391 shares during the period. Finally, Merit Financial Group LLC raised its position in shares of CarMax by 79.0% in the 1st quarter. Merit Financial Group LLC now owns 13,129 shares of the company's stock worth $1,023,000 after acquiring an additional 5,796 shares in the last quarter.

About CarMax

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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