Drucker Wealth 3.0 LLC Trims Position in CarMax, Inc. $KMX

Key Points

• Drucker Wealth 3.0 LLC reduced its position in CarMax by 64.7% during the second quarter, lowering its holdings to 5,390 shares valued at $363,000.
• Analysts have recently downgraded CarMax's ratings, with Morgan Stanley reducing its price target from $80.00 to $56.00, indicating a shift in market sentiment.
• CarMax reported disappointing earnings of $0.64 per share for the quarter, missing estimates and showing a 6.0% revenue decline compared to the previous year.

Drucker Wealth 3.0 LLC lessened its stake in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 64.7% during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 5,390 shares of the company's stock after selling 9,871 shares during the period. Drucker Wealth 3.0 LLC's holdings in CarMax were worth $363,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also modified their holdings of the stock. Baird Financial Group Inc. raised its holdings in shares of CarMax by 7.1% during the 1st quarter. Baird Financial Group Inc. now owns 3,093,632 shares of the company's stock worth $241,056,000 after acquiring an additional 206,106 shares during the period. Invesco Ltd. raised its holdings in shares of CarMax by 4.9% during the 1st quarter. Invesco Ltd. now owns 2,863,594 shares of the company's stock worth $223,131,000 after acquiring an additional 133,629 shares during the period. First Pacific Advisors LP raised its holdings in shares of CarMax by 0.8% during the 1st quarter. First Pacific Advisors LP now owns 2,415,974 shares of the company's stock worth $188,253,000 after acquiring an additional 18,912 shares during the period. Envestnet Asset Management Inc. raised its holdings in shares of CarMax by 1.4% during the 1st quarter. Envestnet Asset Management Inc. now owns 1,521,704 shares of the company's stock worth $118,571,000 after acquiring an additional 20,800 shares during the period. Finally, AQR Capital Management LLC raised its holdings in shares of CarMax by 7.8% during the 1st quarter. AQR Capital Management LLC now owns 1,509,344 shares of the company's stock worth $115,887,000 after acquiring an additional 109,332 shares during the period.

Analysts Set New Price Targets

Several research firms have recently commented on KMX. Seaport Res Ptn lowered CarMax from a "strong-buy" rating to a "hold" rating in a report on Sunday, September 28th. Morgan Stanley reduced their price objective on shares of CarMax from $80.00 to $56.00 and set an "overweight" rating on the stock in a report on Wednesday, October 1st. Stephens lowered shares of CarMax from an "overweight" rating to an "equal weight" rating and reduced their price objective for the company from $53.00 to $42.00 in a report on Tuesday, October 7th. JPMorgan Chase & Co. reduced their price objective on shares of CarMax from $65.00 to $50.00 and set a "neutral" rating on the stock in a report on Friday, September 26th. Finally, Wall Street Zen lowered shares of CarMax from a "hold" rating to a "sell" rating in a report on Friday, October 3rd. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $54.42.

CarMax Stock Performance

NYSE KMX opened at $43.09 on Friday. The company has a market cap of $6.33 billion, a P/E ratio of 12.64, a P/E/G ratio of 0.82 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. The stock has a 50-day moving average of $55.65 and a two-hundred day moving average of $62.91. CarMax, Inc. has a 1-year low of $42.75 and a 1-year high of $91.25.

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

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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