CarMax (NYSE:KMX) Sets New 12-Month Low on Disappointing Earnings

Shares of CarMax, Inc. (NYSE:KMX) reached a new 52-week low on Thursday following a dissappointing earnings announcement. The stock traded as low as $43.96 and last traded at $43.34, with a volume of 5492349 shares trading hands. The stock had previously closed at $57.05.

The company reported $0.64 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.03 by ($0.39). The company had revenue of $6.59 billion for the quarter, compared to analysts’ expectations 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 in the previous year, the firm posted $0.85 earnings per share.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Evercore ISI reduced their price objective on shares of CarMax from $82.00 to $80.00 and set an “outperform” rating on the stock in a research report on Tuesday, August 12th. Royal Bank Of Canada upped their target price on shares of CarMax from $80.00 to $81.00 and gave the stock an “outperform” rating in a research report on Monday, June 23rd. Morgan Stanley started coverage on shares of CarMax in a research report on Tuesday, July 1st. They issued an “overweight” rating and a $80.00 target price on the stock. Needham & Company LLC reaffirmed a “buy” rating and issued a $92.00 target price on shares of CarMax in a research report on Monday, June 23rd. Finally, Stephens reduced their target price on shares of CarMax from $81.00 to $74.00 and set an “overweight” rating on the stock in a research report on Monday, September 15th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $79.00.

Insider Transactions at CarMax

In other CarMax news, EVP Jon G. Daniels sold 1,540 shares of the company’s stock in a transaction dated Wednesday, July 2nd. The shares were 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 in the company, valued at approximately $196,308.56. This represents a 35.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.70% of the company’s stock.

Hedge Funds Weigh In On CarMax

Institutional investors have recently made changes to their positions in the business. Mirae Asset Global Investments Co. Ltd. lifted its stake in shares of CarMax by 13.0% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 20,678 shares of the company’s stock worth $1,571,000 after purchasing an additional 2,375 shares during the period. Teacher Retirement System of Texas bought a new stake in CarMax during the 1st quarter worth approximately $1,753,000. Sequoia Financial Advisors LLC raised its stake in CarMax by 5.5% during the 1st quarter. Sequoia Financial Advisors LLC now owns 3,367 shares of the company’s stock worth $262,000 after acquiring an additional 176 shares during the period. Wedge Capital Management L L P NC raised its stake in CarMax by 54.9% during the 2nd quarter. Wedge Capital Management L L P NC now owns 102,632 shares of the company’s stock worth $6,898,000 after acquiring an additional 36,376 shares during the period. Finally, Asset Management One Co. Ltd. raised its stake in CarMax by 3.5% during the 1st quarter. Asset Management One Co. Ltd. now owns 60,653 shares of the company’s stock worth $4,726,000 after acquiring an additional 2,078 shares during the period.

CarMax Stock Performance

The company has a market cap of $6.85 billion, a P/E ratio of 12.61, a PEG ratio of 0.93 and a beta of 1.35. The business’s 50 day simple moving average is $58.95 and its 200 day simple moving average is $65.00. The company has a current ratio of 2.39, a quick ratio of 0.80 and a debt-to-equity ratio of 2.86.

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.