CarMax (NYSE:KMX) Lowered to “Strong Sell” Rating by Zacks Research

CarMax (NYSE:KMX) was downgraded by research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Thursday,Zacks.com reports.

Several other research analysts have also weighed in on KMX. Morgan Stanley cut their price objective on shares of CarMax from $80.00 to $56.00 and set an “overweight” rating on the stock in a report on Wednesday. BNP Paribas Exane cut their price objective on shares of CarMax from $52.00 to $35.00 and set an “underperform” rating on the stock in a report on Friday, September 26th. Robert W. Baird cut their price objective on shares of CarMax from $90.00 to $60.00 and set an “outperform” rating on the stock in a report on Friday, September 26th. Wall Street Zen lowered shares of CarMax from a “hold” rating to a “sell” rating in a report on Friday. Finally, Evercore ISI reiterated an “in-line” rating and set a $52.00 price objective (down from $80.00) on shares of CarMax in a report on Friday, September 26th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $56.58.

CarMax Price Performance

NYSE:KMX opened at $46.42 on Thursday. The firm has a market cap of $6.82 billion, a price-to-earnings ratio of 13.61, a price-to-earnings-growth ratio of 0.87 and a beta of 1.27. The company has a current ratio of 2.46, a quick ratio of 1.06 and a debt-to-equity ratio of 2.87. The company’s 50-day moving average is $56.99 and its two-hundred day moving average is $63.94. CarMax has a 12-month low of $42.75 and a 12-month high of $91.25.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Thursday, September 25th. The company reported $0.64 earnings per share for the quarter, missing the consensus estimate 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 return on equity of 8.51% and a net margin of 1.98%.The company’s revenue was down 6.0% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.85 earnings per share. Research analysts expect that CarMax will post 3.23 EPS for the current year.

Institutional Trading of CarMax

Institutional investors and hedge funds have recently bought and sold shares of the business. Zions Bancorporation National Association UT acquired a new stake in CarMax in the first quarter valued at approximately $27,000. CYBER HORNET ETFs LLC acquired a new stake in CarMax in the second quarter valued at approximately $28,000. Accent Capital Management LLC acquired a new stake in CarMax in the first quarter valued at approximately $34,000. MUFG Securities EMEA plc acquired a new stake in CarMax in the second quarter valued at approximately $30,000. Finally, Strengthening Families & Communities LLC grew its position in CarMax by 93.1% in the first quarter. Strengthening Families & Communities LLC now owns 531 shares of the company’s stock valued at $39,000 after acquiring an additional 256 shares in the last quarter.

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.