CarMax (NYSE:KMX) Shares Gap Down Following Weak Earnings

CarMax, Inc. (NYSE:KMX) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $80.06, but opened at $69.49. CarMax shares last traded at $66.28, with a volume of 5,033,437 shares traded.

The company reported $0.58 earnings per share for the quarter, missing analysts’ consensus estimates of $0.66 by ($0.08). CarMax had a return on equity of 7.49% and a net margin of 1.77%. The business had revenue of $6 billion during the quarter, compared to the consensus estimate of $5.93 billion. During the same quarter in the prior year, the business posted $0.32 earnings per share. CarMax’s quarterly revenue was up 6.7% compared to the same quarter last year.

Analyst Ratings Changes

Several equities research analysts recently commented on the company. Evercore ISI reduced their price objective on CarMax from $107.00 to $105.00 and set an “outperform” rating for the company in a report on Tuesday, March 11th. Wedbush restated an “outperform” rating and issued a $100.00 price target on shares of CarMax in a research report on Tuesday, April 1st. JPMorgan Chase & Co. lowered their target price on shares of CarMax from $72.00 to $65.00 and set an “underweight” rating on the stock in a research note on Thursday, March 27th. StockNews.com raised CarMax from a “sell” rating to a “hold” rating in a report on Friday, December 20th. Finally, Stephens raised shares of CarMax from an “equal weight” rating to an “overweight” rating and increased their price objective for the company from $86.00 to $90.00 in a report on Wednesday, March 26th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and eight have given a buy rating to the company. Based on data from MarketBeat.com, CarMax has an average rating of “Hold” and an average target price of $90.64.

Insider Activity at CarMax

In other CarMax news, SVP Tyler Tuite sold 4,869 shares of the business’s stock in a transaction on Tuesday, January 28th. The shares were sold at an average price of $84.58, for a total value of $411,820.02. Following the completion of the transaction, the senior vice president now owns 227 shares in the company, valued at $19,199.66. The trade was a 95.55 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, VP Jill A. Livesay sold 13,009 shares of the stock in a transaction dated Wednesday, January 15th. The shares were sold at an average price of $81.00, for a total value of $1,053,729.00. Following the completion of the sale, the vice president now directly owns 9,448 shares in the company, valued at $765,288. This represents a 57.93 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 22,878 shares of company stock worth $1,872,699. Company insiders own 1.66% of the company’s stock.

Institutional Trading of CarMax

Several institutional investors have recently modified their holdings of KMX. Principal Financial Group Inc. increased its holdings in shares of CarMax by 3.4% in the fourth quarter. Principal Financial Group Inc. now owns 8,591,297 shares of the company’s stock valued at $702,425,000 after purchasing an additional 282,519 shares during the period. Kovitz Investment Group Partners LLC raised its stake in shares of CarMax by 348.0% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 6,595,067 shares of the company’s stock worth $539,213,000 after buying an additional 5,122,850 shares during the last quarter. Norges Bank purchased a new stake in shares of CarMax in the fourth quarter valued at about $423,187,000. Janus Henderson Group PLC grew its holdings in CarMax by 0.6% during the 4th quarter. Janus Henderson Group PLC now owns 4,671,950 shares of the company’s stock valued at $381,978,000 after buying an additional 29,715 shares during the last quarter. Finally, Geode Capital Management LLC increased its position in CarMax by 1.3% during the 4th quarter. Geode Capital Management LLC now owns 3,710,267 shares of the company’s stock worth $302,564,000 after purchasing an additional 47,058 shares in the last quarter.

CarMax Trading Down 16.8 %

The firm has a market capitalization of $10.25 billion, a PE ratio of 22.59, a P/E/G ratio of 1.67 and a beta of 1.58. The business’s fifty day moving average price is $78.93 and its 200 day moving average price is $79.20. The company has a quick ratio of 0.55, a current ratio of 2.30 and a debt-to-equity ratio of 2.92.

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.