CarMax (NYSE:KMX) Shares Gap Down on Analyst Downgrade

Shares of CarMax, Inc. (NYSE:KMXGet Free Report) gapped down prior to trading on Thursday after Evercore ISI lowered their price target on the stock from $72.00 to $68.00. The stock had previously closed at $72.30, but opened at $70.50. Evercore ISI currently has an in-line rating on the stock. CarMax shares last traded at $71.53, with a volume of 100,008 shares.

A number of other research analysts have also issued reports on KMX. Truist Financial reduced their target price on shares of CarMax from $75.00 to $72.00 and set a “hold” rating for the company in a research note on Friday, April 12th. JPMorgan Chase & Co. cut their price target on shares of CarMax from $60.00 to $55.00 and set an “underweight” rating on the stock in a report on Monday, April 15th. Needham & Company LLC dropped their price objective on shares of CarMax from $99.00 to $91.00 and set a “buy” rating on the stock in a research note on Friday, April 12th. Mizuho dropped their price objective on shares of CarMax from $80.00 to $75.00 and set a “neutral” rating on the stock in a research note on Friday, April 12th. Finally, Royal Bank of Canada restated an “outperform” rating and issued a $83.00 target price on shares of CarMax in a report on Monday, April 8th. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating and five have assigned a buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $76.92.

Check Out Our Latest Stock Analysis on KMX

Insider Activity

In related news, EVP Diane L. Cafritz sold 15,356 shares of the firm’s stock in a transaction dated Tuesday, April 23rd. The shares were sold at an average price of $69.53, for a total value of $1,067,702.68. Following the completion of the sale, the executive vice president now directly owns 6,977 shares in the company, valued at approximately $485,110.81. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.66% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new position in shares of CarMax during the fourth quarter worth $288,278,000. Morningstar Investment Services LLC increased its position in shares of CarMax by 95.4% during the fourth quarter. Morningstar Investment Services LLC now owns 2,717,326 shares of the company’s stock worth $211,516,000 after acquiring an additional 1,326,840 shares in the last quarter. DAVENPORT & Co LLC grew its position in CarMax by 1,327.3% in the 1st quarter. DAVENPORT & Co LLC now owns 1,023,247 shares of the company’s stock worth $89,070,000 after purchasing an additional 951,558 shares in the last quarter. American Century Companies Inc. grew its position in CarMax by 674.3% in the 3rd quarter. American Century Companies Inc. now owns 806,716 shares of the company’s stock worth $57,059,000 after purchasing an additional 702,526 shares in the last quarter. Finally, Epoch Investment Partners Inc. grew its position in CarMax by 3,094.0% in the 1st quarter. Epoch Investment Partners Inc. now owns 596,356 shares of the company’s stock worth $51,949,000 after purchasing an additional 577,685 shares in the last quarter.

CarMax Trading Down 1.3 %

The company has a debt-to-equity ratio of 2.96, a current ratio of 2.26 and a quick ratio of 0.67. The stock has a market capitalization of $10.89 billion, a PE ratio of 22.83, a PEG ratio of 1.36 and a beta of 1.69. The stock’s 50 day simple moving average is $72.59 and its two-hundred day simple moving average is $73.33.

CarMax (NYSE:KMXGet Free Report) last announced its quarterly earnings results on Thursday, April 11th. The company reported $0.32 EPS for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.13). CarMax had a net margin of 1.81% and a return on equity of 7.26%. The business had revenue of $5.63 billion for the quarter, compared to analysts’ expectations of $5.76 billion. During the same quarter in the previous year, the company posted $0.44 earnings per share. The business’s quarterly revenue was down 1.7% compared to the same quarter last year. On average, sell-side analysts expect that CarMax, Inc. will post 3.06 EPS for the current year.

CarMax Company Profile

(Get Free Report)

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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