FY2027 EPS Estimates for CarMax Reduced by Seaport Res Ptn

Key Points

• Seaport Res Ptn has reduced its FY2027 EPS estimates for CarMax from $4.14 to $3.91, while maintaining a "Hold" rating on the stock.
• Multiple analysts have also revised their price targets for CarMax, with Truist Financial lowering it from $74.00 to $47.00, indicating a bearish outlook.
• CarMax reported quarterly earnings of $0.64 per share, significantly missing analysts' expectations of $1.03, alongside a year-over-year revenue decline of 6%.

CarMax, Inc. (NYSE:KMX - Free Report) - Equities researchers at Seaport Res Ptn reduced their FY2027 EPS estimates for CarMax in a research report issued on Sunday, September 28th. Seaport Res Ptn analyst G. Chin now expects that the company will post earnings of $3.91 per share for the year, down from their prior forecast of $4.14. Seaport Res Ptn currently has a "Hold" rating on the stock. The consensus estimate for CarMax's current full-year earnings is $3.23 per share.

A number of other equities research analysts also recently weighed in on KMX. Truist Financial dropped their price target on shares of CarMax from $74.00 to $47.00 and set a "hold" rating for the company in a research note on Friday. Royal Bank Of Canada cut their target price on shares of CarMax from $81.00 to $59.00 and set an "outperform" rating on the stock in a report on Friday. Stephens cut their target price on shares of CarMax from $74.00 to $53.00 and set an "overweight" rating on the stock in a report on Friday. Benchmark initiated coverage on shares of CarMax in a report on Thursday, July 17th. They issued a "buy" rating and a $75.00 target price on the stock. Finally, Mizuho cut their target price on shares of CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a report on Thursday, July 3rd. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, CarMax has a consensus rating of "Hold" and a consensus target price of $62.15.

CarMax Trading Up 0.9%

KMX opened at $45.25 on Tuesday. 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 company has a market cap of $6.79 billion, a price-to-earnings ratio of 13.27, a price-to-earnings-growth ratio of 0.76 and a beta of 1.35. The firm has a 50 day simple moving average of $58.27 and a 200 day simple moving average of $64.55. CarMax has a fifty-two week low of $42.75 and a fifty-two week high of $91.25.

CarMax (NYSE:KMX - Get Free Report) last posted its quarterly earnings results on Thursday, September 25th. The company reported $0.64 earnings per share for the quarter, missing analysts' consensus estimates of $1.03 by ($0.39). The business had revenue of $6.59 billion for the quarter, compared to the consensus estimate of $7.07 billion. CarMax had a return on equity of 8.51% and a net margin of 1.98%.The company's quarterly revenue was down 6.0% on a year-over-year basis. During the same period last year, the firm earned $0.85 earnings per share.

Institutional Trading of CarMax

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Texas Permanent School Fund Corp boosted its holdings in shares of CarMax by 59.5% during the 2nd quarter. Texas Permanent School Fund Corp now owns 27,488 shares of the company's stock worth $1,847,000 after buying an additional 10,259 shares during the period. Osaic Holdings Inc. boosted its holdings in shares of CarMax by 49.0% during the 2nd quarter. Osaic Holdings Inc. now owns 159,895 shares of the company's stock worth $10,768,000 after buying an additional 52,576 shares during the period. Orion Porfolio Solutions LLC boosted its holdings in shares of CarMax by 14.4% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 24,411 shares of the company's stock worth $1,641,000 after buying an additional 3,070 shares during the period. Thrivent Financial for Lutherans boosted its holdings in shares of CarMax by 202.1% during the 2nd quarter. Thrivent Financial for Lutherans now owns 26,230 shares of the company's stock worth $1,762,000 after buying an additional 17,548 shares during the period. Finally, Cape Investment Advisory Inc. boosted its holdings in shares of CarMax by 3.7% during the 2nd quarter. Cape Investment Advisory Inc. now owns 15,792 shares of the company's stock worth $1,061,000 after buying an additional 568 shares during the period.

Insider Buying and Selling

In other CarMax news, EVP Jon G. Daniels sold 1,540 shares of the stock in a transaction on Wednesday, July 2nd. The shares were sold at an average price of $70.64, for a total value of $108,785.60. Following the completion of the sale, the executive vice president owned 2,779 shares in the company, valued at $196,308.56. This trade represents a 35.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 1.70% of the stock is currently owned by corporate insiders.

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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