CarMax, Inc. $KMX Shares Sold by Envestnet Portfolio Solutions Inc.

Key Points

• Envestnet Portfolio Solutions Inc. reduced its stake in CarMax, Inc. by 47.9%, selling 5,846 shares, resulting in ownership of 6,363 shares valued at about $428,000.
• CarMax reported $0.64 EPS in its latest earnings, missing the analysts' estimate of $1.03, with revenues down 6.0% compared to the same quarter last year.
• Several analysts have downgraded CarMax's stock ratings, with Zacks Research changing its rating from "hold" to "strong sell" and others adjusting price targets significantly downward.

Envestnet Portfolio Solutions Inc. lessened its stake in CarMax, Inc. (NYSE:KMX - Free Report) by 47.9% in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 6,363 shares of the company's stock after selling 5,846 shares during the quarter. Envestnet Portfolio Solutions Inc.'s holdings in CarMax were worth $428,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Zions Bancorporation National Association UT acquired a new position in shares of CarMax in the 1st quarter valued at about $27,000. Accent Capital Management LLC acquired a new position in shares of CarMax in the 1st quarter valued at about $34,000. Strengthening Families & Communities LLC raised its holdings in CarMax by 93.1% in the 1st quarter. Strengthening Families & Communities LLC now owns 531 shares of the company's stock worth $39,000 after purchasing an additional 256 shares during the period. Quarry LP raised its holdings in CarMax by 50.5% in the 1st quarter. Quarry LP now owns 694 shares of the company's stock worth $54,000 after purchasing an additional 233 shares during the period. Finally, Blue Trust Inc. raised its holdings in CarMax by 49.2% in the 1st quarter. Blue Trust Inc. now owns 898 shares of the company's stock worth $70,000 after purchasing an additional 296 shares during the period.

CarMax Price Performance

Shares of CarMax stock opened at $43.79 on Thursday. The business has a 50 day simple moving average of $53.68 and a two-hundred day simple moving average of $61.13. CarMax, Inc. has a 12 month low of $42.34 and a 12 month high of $91.25. The stock has a market capitalization of $6.43 billion, a P/E ratio of 12.84, a PEG ratio of 0.85 and a beta of 1.27. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.46 and a quick ratio of 1.06.

CarMax (NYSE:KMX - Get Free Report) last announced its earnings results on Thursday, September 25th. The company reported $0.64 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 firm had revenue of $6.59 billion for the quarter, compared to analyst estimates of $7.07 billion. During the same period in the previous year, the company earned $0.85 EPS. CarMax's revenue was down 6.0% compared to the same quarter last year. As a group, analysts predict that CarMax, Inc. will post 3.23 EPS for the current fiscal year.

Analyst Ratings Changes

A number of research firms recently weighed in on KMX. Zacks Research cut CarMax from a "hold" rating to a "strong sell" rating in a report on Thursday, October 2nd. Needham & Company LLC reduced their price target on CarMax from $92.00 to $60.00 and set a "buy" rating for the company in a report on Friday, September 26th. Mizuho reduced their price target on CarMax from $78.00 to $46.00 and set a "neutral" rating for the company in a report on Thursday, October 16th. Morgan Stanley reduced their price target on CarMax from $80.00 to $56.00 and set an "overweight" rating for the company in a report on Wednesday, October 1st. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of CarMax in a report on Tuesday, October 14th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eight have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $51.75.

CarMax 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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