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

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

Analysts Set New Price Targets

Several equities analysts recently commented on KMX shares. Cfra Research raised shares of CarMax to a "strong-buy" rating in a research note on Thursday, April 10th. Truist Financial boosted their price objective on shares of CarMax from $72.00 to $74.00 and gave the company a "hold" rating in a research note on Monday. Needham & Company LLC reaffirmed a "buy" rating and set a $92.00 price objective on shares of CarMax in a research note on Monday. JPMorgan Chase & Co. reduced their price objective on shares of CarMax from $72.00 to $65.00 and set an "underweight" rating for the company in a research note on Thursday, March 27th. Finally, Evercore ISI reduced their price objective on shares of CarMax from $85.00 to $84.00 and set an "outperform" rating for the company in a research note on Wednesday, May 28th. Two investment analysts have rated the stock with a sell rating, three have issued a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $85.10.

CarMax Trading Down 1.2%

The firm has a market capitalization of $10.18 billion, a P/E ratio of 18.43, a price-to-earnings-growth ratio of 1.10 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. The firm's 50-day simple moving average is $65.74 and its 200-day simple moving average is $74.98.

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

Insider Buying and Selling at CarMax

In other CarMax news, Director Mitchell D. Steenrod acquired 1,300 shares of the stock in a transaction dated Thursday, April 24th. The stock was purchased at an average cost of $65.49 per share, for a total transaction of $85,137.00. Following the acquisition, the director now owns 33,577 shares in the company, valued at $2,198,957.73. The trade was a 4.03% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. 1.70% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On CarMax

A number of hedge funds have recently made changes to their positions in KMX. Norges Bank bought a new stake in shares of CarMax in the 4th quarter worth approximately $423,187,000. Kovitz Investment Group Partners LLC lifted its holdings in shares of CarMax by 348.0% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 6,595,067 shares of the company's stock worth $539,213,000 after acquiring an additional 5,122,850 shares during the last quarter. Fuller & Thaler Asset Management Inc. lifted its holdings in shares of CarMax by 626.1% in the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 903,024 shares of the company's stock worth $70,364,000 after acquiring an additional 778,652 shares during the last quarter. AQR Capital Management LLC lifted its holdings in shares of CarMax by 82.9% in the 4th quarter. AQR Capital Management LLC now owns 1,400,012 shares of the company's stock worth $114,465,000 after acquiring an additional 634,390 shares during the last quarter. Finally, GAMMA Investing LLC lifted its holdings in shares of CarMax by 8,675.6% in the 1st quarter. GAMMA Investing LLC now owns 515,830 shares of the company's stock worth $40,193,000 after acquiring an additional 509,952 shares during 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.