CarMax (NYSE:KMX) Upgraded by StockNews.com to Sell

StockNews.com upgraded shares of CarMax (NYSE:KMX) to a sell rating in a research report report published on Friday morning.

Other analysts also recently issued reports about the stock. Morgan Stanley reiterated an overweight rating and issued a $80.00 target price on shares of CarMax in a research note on Friday, June 21st. JPMorgan Chase & Co. lowered their price target on CarMax from $60.00 to $55.00 and set an underweight rating on the stock in a research report on Monday, April 15th. Evercore ISI boosted their price objective on CarMax from $68.00 to $72.00 and gave the stock an in-line rating in a research report on Tuesday, July 16th. Robert W. Baird lowered their target price on CarMax from $88.00 to $84.00 and set an outperform rating on the stock in a report on Friday, April 12th. Finally, Needham & Company LLC cut their price target on CarMax from $91.00 to $87.00 and set a buy rating for the company in a report on Monday, June 24th. Three research analysts have rated the stock with a sell rating, five have assigned a hold rating and six have assigned a buy rating to the stock. Based on data from MarketBeat.com, CarMax currently has an average rating of Hold and an average price target of $76.25.

CarMax Stock Performance

KMX opened at $83.02 on Friday. The company has a debt-to-equity ratio of 2.95, a quick ratio of 0.60 and a current ratio of 2.50. The company has a market cap of $12.96 billion, a PE ratio of 32.43, a price-to-earnings-growth ratio of 1.69 and a beta of 1.69. The stock has a 50-day moving average of $73.66 and a 200-day moving average of $74.46. CarMax has a 52-week low of $59.66 and a 52-week high of $88.22.

CarMax (NYSE:KMX) last posted its earnings results on Friday, June 21st. The company reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.94 by $0.03. CarMax had a return on equity of 6.64% and a net margin of 1.55%. The firm had revenue of $7.11 billion during the quarter, compared to analyst estimates of $7.16 billion. During the same period in the previous year, the company earned $1.16 EPS. The company’s revenue for the quarter was down 7.5% on a year-over-year basis. As a group, equities research analysts forecast that CarMax will post 2.99 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO William D. Nash sold 120,000 shares of CarMax stock in a transaction dated Thursday, July 11th. The shares were sold at an average price of $79.62, for a total transaction of $9,554,400.00. Following the sale, the chief executive officer now directly owns 181,683 shares in the company, valued at approximately $14,465,600.46. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. In related news, CEO William D. Nash sold 120,000 shares of the firm’s stock in a transaction that occurred on Thursday, July 11th. The stock was sold at an average price of $79.62, for a total transaction of $9,554,400.00. Following the completion of the transaction, the chief executive officer now owns 181,683 shares in the company, valued at approximately $14,465,600.46. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, SVP Jon G. Daniels sold 1,231 shares of the company’s stock in a transaction on Wednesday, June 26th. The shares were sold at an average price of $72.46, for a total value of $89,198.26. Following the completion of the sale, the senior vice president now owns 995 shares in the company, valued at $72,097.70. The disclosure for this sale can be found here. In the last 90 days, insiders sold 160,243 shares of company stock worth $12,836,542. 1.66% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On CarMax

A number of hedge funds have recently made changes to their positions in KMX. Allworth Financial LP grew its stake in CarMax by 153.3% during the fourth quarter. Allworth Financial LP now owns 342 shares of the company’s stock worth $26,000 after buying an additional 207 shares during the last quarter. First Community Trust NA acquired a new position in shares of CarMax in the 2nd quarter worth approximately $29,000. Mendota Financial Group LLC bought a new stake in CarMax during the 4th quarter worth approximately $37,000. Blue Trust Inc. increased its holdings in CarMax by 134.1% during the 2nd quarter. Blue Trust Inc. now owns 501 shares of the company’s stock valued at $37,000 after purchasing an additional 287 shares in the last quarter. Finally, MCF Advisors LLC acquired a new stake in CarMax during the 4th quarter valued at $46,000.

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.