CarMax (NYSE:KMX) Trading Down 3.8% Following Analyst Downgrade

Posted by on Apr 13th, 2023

CarMax, Inc. (NYSE:KMX – Get Rating)’s stock price fell 3.8% during trading on Wednesday after Truist Financial lowered their price target on the stock from $66.00 to $64.00. The stock traded as low as $69.30 and last traded at $69.50. 850,325 shares were traded during mid-day trading, a decline of 65% from the average session volume of 2,460,489 shares. The stock had previously closed at $72.21.

Several other equities analysts have also recently issued reports on the company. Robert W. Baird lifted their price objective on CarMax from $65.00 to $80.00 in a research note on Wednesday. Wedbush restated a “neutral” rating and issued a $55.00 price objective on shares of CarMax in a report on Thursday, March 16th. Oppenheimer reduced their price objective on shares of CarMax from $100.00 to $75.00 and set an “outperform” rating on the stock in a report on Friday, December 23rd. Stephens reduced their price objective on shares of CarMax from $53.00 to $51.00 and set an “equal weight” rating on the stock in a report on Friday, March 31st. Finally, JPMorgan Chase & Co. reduced their price objective on shares of CarMax from $60.00 to $55.00 and set an “underweight” rating on the stock in a report on Friday, March 10th. Three analysts have rated the stock with a sell rating, six have given a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat, CarMax presently has a consensus rating of “Hold” and a consensus price target of $63.60.

Institutional Investors Weigh In On CarMax

Several large investors have recently modified their holdings of KMX. Vanguard Group Inc. increased its holdings in shares of CarMax by 1.7% in the first quarter. Vanguard Group Inc. now owns 17,690,606 shares of the company’s stock valued at $1,706,790,000 after purchasing an additional 303,973 shares during the period. Akre Capital Management LLC raised its holdings in CarMax by 0.7% during the first quarter. Akre Capital Management LLC now owns 7,339,952 shares of the company’s stock worth $708,159,000 after purchasing an additional 49,780 shares in the last quarter. State Street Corp raised its holdings in CarMax by 0.7% during the third quarter. State Street Corp now owns 6,137,852 shares of the company’s stock worth $405,221,000 after purchasing an additional 40,047 shares in the last quarter. Diamond Hill Capital Management Inc. acquired a new stake in CarMax in the fourth quarter valued at about $327,964,000. Finally, Invesco Ltd. boosted its holdings in CarMax by 8.4% in the 1st quarter. Invesco Ltd. now owns 3,757,420 shares of the company’s stock valued at $362,515,000 after purchasing an additional 291,804 shares in the last quarter.

CarMax Price Performance

The company has a market cap of $10.84 billion, a price-to-earnings ratio of 19.21, a PEG ratio of 8.72 and a beta of 1.42. The company has a 50-day simple moving average of $66.99 and a 200-day simple moving average of $65.90. The company has a debt-to-equity ratio of 3.21, a quick ratio of 0.81 and a current ratio of 2.57.

CarMax (NYSE:KMX – Get Rating) last released its quarterly earnings data on Tuesday, April 11th. The company reported $0.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.20. CarMax had a return on equity of 10.69% and a net margin of 1.82%. The firm had revenue of $5.72 billion during the quarter, compared to analysts’ expectations of $6.10 billion. During the same quarter in the prior year, the business posted $0.98 earnings per share. CarMax’s revenue was down 25.6% compared to the same quarter last year. As a group, research analysts predict that CarMax, Inc. will post 2.84 earnings per share for the current year.

CarMax Company Profile

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CarMax, Inc is a holding company, which engages in the retail of used vehicles and wholesale of vehicle auction operators. It operates through the CarMax Sales Operations and CarMax Auto Finance (CAF) segments. The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations.

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