CarMax (NYSE:KMX) Announces Earnings Results, Misses Estimates By $0.01 EPS

CarMax (NYSE:KMX) posted its quarterly earnings results on Thursday. The company reported $0.85 earnings per share for the quarter, missing analysts’ consensus estimates of $0.86 by ($0.01), Briefing.com reports. CarMax had a net margin of 1.55% and a return on equity of 6.64%. The business had revenue of $7.01 billion during the quarter, compared to analyst estimates of $6.83 billion. During the same quarter in the prior year, the business earned $0.75 earnings per share. The firm’s quarterly revenue was down .9% on a year-over-year basis.

CarMax Trading Down 1.2 %

Shares of CarMax stock opened at $77.29 on Friday. The company has a debt-to-equity ratio of 2.95, a current ratio of 2.50 and a quick ratio of 0.60. CarMax has a 1 year low of $59.66 and a 1 year high of $88.22. The company has a market capitalization of $12.06 billion, a P/E ratio of 30.19, a P/E/G ratio of 1.56 and a beta of 1.69. The business has a 50 day moving average price of $79.71 and a 200 day moving average price of $76.37.

Insider Buying and Selling

In other CarMax news, CEO William D. Nash sold 120,000 shares of the business’s stock in a transaction on Thursday, July 11th. The stock was sold at an average price of $79.62, for a total value of $9,554,400.00. Following the completion of the transaction, 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 legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In other news, COO Charles Joseph Wilson sold 10,021 shares of the company’s stock in a transaction on Tuesday, July 23rd. The stock was sold at an average price of $80.02, for a total transaction of $801,880.42. Following the completion of the sale, the chief operating officer now directly owns 15,609 shares in the company, valued at approximately $1,249,032.18. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO William D. Nash sold 120,000 shares of the company’s stock in a transaction 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 sale, the chief executive officer now directly owns 181,683 shares of the company’s stock, valued at $14,465,600.46. The disclosure for this sale can be found here. Insiders sold 184,012 shares of company stock worth $14,803,843 in the last ninety days. Insiders own 1.66% of the company’s stock.

Analyst Upgrades and Downgrades

KMX has been the topic of a number of research analyst reports. Truist Financial lifted their target price on CarMax from $70.00 to $75.00 and gave the stock a “hold” rating in a research report on Monday, September 23rd. Morgan Stanley restated an “overweight” rating and issued a $80.00 price target on shares of CarMax in a research report on Friday, June 21st. JPMorgan Chase & Co. lifted their price objective on CarMax from $55.00 to $65.00 and gave the company an “underweight” rating in a report on Thursday, September 19th. StockNews.com raised CarMax to a “sell” rating in a report on Friday, July 26th. Finally, Argus raised CarMax to a “hold” rating in a report on Tuesday, June 25th. Three analysts have rated the stock with a sell rating, five have given a hold rating and six have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $78.92.

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.