Zacks Investment Research upgraded shares of CarMax, Inc (NYSE:KMX) from a sell rating to a hold rating in a research note issued to investors on Wednesday.
According to Zacks, “CarMax surpassed earnings and revenue estimates in the fourth quarter of fiscal 2017 with earnings per share rising 14.1% year over year. The company has outperformed the Zacks-categorized Retail/Wholesale-Auto Parts industry in the last six months. CarMax’s focus on the used-vehicle market, aggressive store-expansion and share repurchases should help it outperform peers. However, the average selling prices in used vehicle as well as wholesale vehicle segment has been declining. The increase in the supply of used vehicles is expected to further lower prices. Moreover, the company faces weakness in other sales and revenues. Income in the CAF business has also been declining. CarMax has been incurring significant cash outflows from operations. “
Several other brokerages also recently commented on KMX. Oppenheimer Holdings Inc. reissued an outperform rating and issued a $72.00 target price on shares of CarMax in a report on Monday, March 13th. Wedbush reissued a neutral rating on shares of CarMax in a report on Wednesday, January 18th. Morgan Stanley downgraded CarMax from an equal weight rating to an underweight rating and set a $48.00 target price on the stock. in a report on Wednesday, February 1st. Deutsche Bank AG reduced their target price on CarMax from $73.00 to $72.00 and set a buy rating on the stock in a report on Thursday, April 6th. Finally, Susquehanna Bancshares Inc set a $70.00 target price on CarMax and gave the stock a buy rating in a report on Friday, April 7th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the stock. The stock currently has an average rating of Buy and an average target price of $66.17.
CarMax (NYSE:KMX) traded down 0.597% during mid-day trading on Wednesday, reaching $60.775. The company had a trading volume of 497,409 shares. The company’s 50 day moving average is $58.35 and its 200 day moving average is $61.02. CarMax has a 52-week low of $45.06 and a 52-week high of $69.11. The stock has a market capitalization of $11.29 billion, a price-to-earnings ratio of 18.643 and a beta of 1.34.
CarMax (NYSE:KMX) last announced its earnings results on Thursday, April 6th. The company reported $0.81 EPS for the quarter, topping the consensus estimate of $0.79 by $0.02. The business had revenue of $4.05 billion for the quarter, compared to the consensus estimate of $3.94 billion. CarMax had a return on equity of 21.02% and a net margin of 3.96%. CarMax’s revenue was up 9.3% compared to the same quarter last year. During the same period in the previous year, the business earned $0.74 EPS. Equities analysts predict that CarMax will post $3.52 earnings per share for the current year.
In related news, Director Edgar H. Grubb sold 2,000 shares of the business’s stock in a transaction that occurred on Friday, April 21st. The shares were sold at an average price of $58.24, for a total value of $116,480.00. Following the completion of the transaction, the director now owns 42,005 shares in the company, valued at approximately $2,446,371.20. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.70% of the company’s stock.
A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Commonwealth Equity Services Inc boosted its position in CarMax by 4.2% in the third quarter. Commonwealth Equity Services Inc now owns 11,814 shares of the company’s stock valued at $630,000 after buying an additional 474 shares during the period. Great West Life Assurance Co. Can boosted its stake in shares of CarMax by 1.2% in the third quarter. Great West Life Assurance Co. Can now owns 158,970 shares of the company’s stock valued at $8,474,000 after buying an additional 1,935 shares during the last quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. boosted its stake in shares of CarMax by 1.0% in the third quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 31,978 shares of the company’s stock valued at $1,706,000 after buying an additional 305 shares during the last quarter. World Asset Management Inc boosted its stake in shares of CarMax by 1.2% in the third quarter. World Asset Management Inc now owns 19,550 shares of the company’s stock valued at $1,043,000 after buying an additional 228 shares during the last quarter. Finally, Capital One National Association boosted its stake in shares of CarMax by 0.7% in the third quarter. Capital One National Association now owns 12,596 shares of the company’s stock valued at $672,000 after buying an additional 86 shares during the last quarter.
CarMax, Inc (CarMax) is a holding company. The Company is a retailer of used vehicles. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The Company’s CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
What are top analysts saying about CarMax Inc? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for CarMax Inc and related companies.