Zacks Investment Research cut shares of CarMax Inc (NYSE:KMX) from a buy rating to a hold rating in a report released on Tuesday.

According to Zacks, “CarMax’s focus on the used-car market helps it to outperform the industry. The company is among the strongest operators in its peer group. Also, its aggressive store-expansion is expected to benefit the company. Its stock has also outperformed the industry it belongs to, in the last three months. Moreover, share repurchases will boost shareholder returns. However, significant cash outflows from operations, volatility in used car prices and increasing capital expenditures are few headwinds the company is facing.”

Several other research firms also recently issued reports on KMX. ValuEngine downgraded shares of CarMax from a buy rating to a hold rating in a research note on Saturday, July 22nd. BidaskClub upgraded shares of CarMax from a hold rating to a buy rating in a research note on Sunday, July 16th. Wedbush set a $73.00 price objective on shares of CarMax and gave the stock a buy rating in a research note on Tuesday, July 11th. Royal Bank Of Canada reiterated a market perform rating and set a $63.00 price objective (down from $71.00) on shares of CarMax in a research note on Tuesday, July 4th. Finally, Deutsche Bank AG decreased their price objective on shares of CarMax from $73.00 to $72.00 and set a buy rating for the company in a research note on Tuesday, July 4th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the stock. CarMax currently has an average rating of Buy and an average target price of $69.15.

CarMax (NYSE:KMX) traded up 2.31% during trading on Tuesday, hitting $68.70. 315,201 shares of the company were exchanged. The company has a 50-day moving average of $65.08 and a 200-day moving average of $62.59. The company has a market capitalization of $12.59 billion, a price-to-earnings ratio of 19.73 and a beta of 1.34. CarMax has a 12 month low of $47.50 and a 12 month high of $69.11.

CarMax (NYSE:KMX) last released its quarterly earnings data on Wednesday, June 21st. The company reported $1.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.98 by $0.15. CarMax had a net margin of 4.07% and a return on equity of 21.72%. The company had revenue of $4.54 billion during the quarter, compared to the consensus estimate of $4.46 billion. During the same period in the previous year, the firm earned $0.90 earnings per share. CarMax’s revenue for the quarter was up 10.1% on a year-over-year basis. Analysts forecast that CarMax will post $3.71 EPS for the current year.

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In other CarMax news, SVP Mohammad Shamim sold 13,938 shares of the stock in a transaction on Friday, July 28th. The shares were sold at an average price of $66.08, for a total transaction of $921,023.04. Following the transaction, the senior vice president now directly owns 9,218 shares in the company, valued at approximately $609,125.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Thomas W. Reedy, Jr. sold 8,583 shares of the stock in a transaction on Thursday, July 27th. The shares were sold at an average price of $66.87, for a total transaction of $573,945.21. Following the transaction, the chief financial officer now owns 70,522 shares in the company, valued at $4,715,806.14. The disclosure for this sale can be found here. Insiders have sold a total of 188,515 shares of company stock worth $12,085,019 over the last quarter. 1.70% of the stock is currently owned by insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Korea Investment CORP increased its position in CarMax by 140.5% in the second quarter. Korea Investment CORP now owns 1,768 shares of the company’s stock worth $111,000 after buying an additional 1,033 shares during the period. State of Alaska Department of Revenue bought a new position in CarMax during the second quarter worth approximately $112,000. Bronfman E.L. Rothschild L.P. increased its position in CarMax by 2.4% in the first quarter. Bronfman E.L. Rothschild L.P. now owns 2,095 shares of the company’s stock worth $124,000 after buying an additional 49 shares during the period. Seven Eight Capital LP bought a new position in CarMax during the second quarter worth approximately $133,000. Finally, QS Investors LLC increased its position in CarMax by 1.0% in the second quarter. QS Investors LLC now owns 2,333 shares of the company’s stock worth $147,000 after buying an additional 22 shares during the period.

About CarMax

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.

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