Oppenheimer Reaffirms Market Perform Rating for CarMax (NYSE:KMX)

Key Points

• Oppenheimer has reiterated its "market perform" rating for CarMax (NYSE:KMX), while other analysts have given mixed ratings, ranging from "outperform" to "sell."
• CarMax's stock has seen a 20% decline recently, and its most recent earnings results showed a missed EPS estimate of $0.64 versus expectations of $1.03.
• Despite the downturn, CarMax has an average rating of "Moderate Buy" from analysts, with a consensus target price set at $74.00.

CarMax (NYSE:KMX - Get Free Report)'s stock had its "market perform" rating reiterated by Oppenheimer in a report released on Friday, MarketBeat Ratings reports.

Other analysts also recently issued research reports about the company. Truist Financial lifted their target price on CarMax from $72.00 to $74.00 and gave the company a "hold" rating in a research note on Monday, June 23rd. Mizuho decreased their target price on CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a research note on Thursday, July 3rd. Royal Bank Of Canada lifted their target price on CarMax from $80.00 to $81.00 and gave the company an "outperform" rating in a research note on Monday, June 23rd. Wedbush downgraded CarMax from an "outperform" rating to a "neutral" rating and decreased their target price for the company from $84.00 to $54.00 in a research note on Thursday. Finally, Stephens decreased their target price on CarMax from $81.00 to $74.00 and set an "overweight" rating on the stock in a research note on Monday, September 15th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, CarMax has an average rating of "Moderate Buy" and a consensus target price of $74.00.

CarMax Stock Down 20.0%

Shares of KMX opened at $45.66 on Friday. The business's 50 day moving average is $58.95 and its 200 day moving average is $65.00. The company has a market capitalization of $6.85 billion, a PE ratio of 12.61, a price-to-earnings-growth ratio of 0.93 and a beta of 1.35. CarMax has a 12-month low of $42.75 and a 12-month high of $91.25. The company has a current ratio of 2.39, a quick ratio of 0.80 and a debt-to-equity ratio of 2.86.

CarMax (NYSE:KMX - Get Free Report) last issued its earnings results on Thursday, September 25th. The company reported $0.64 earnings per share (EPS) for the quarter, missing the consensus estimate 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 net margin of 2.09% and a return on equity of 9.11%. The firm's revenue for the quarter was down 6.0% compared to the same quarter last year. During the same period last year, the business posted $0.85 EPS. Research analysts expect that CarMax will post 3.23 earnings per share for the current fiscal year.

Insider Buying and Selling at CarMax

In other news, EVP Jon G. Daniels sold 1,540 shares of the business's stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $70.64, for a total transaction of $108,785.60. Following the transaction, the executive vice president owned 2,779 shares of the company's stock, valued at approximately $196,308.56. The trade was a 35.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 1.70% of the company's stock.

Hedge Funds Weigh In On CarMax

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

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.

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