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

According to Zacks, “The Zacks Consensus Estimate for CarMax’s quarterly earnings has been going up of late. Being one of the strongest operators in the used-car market it occupies a significant market share, among its peers. The company is also following an aggressive store expansion initiative to strengthen its presence and cater to a larger customer group. Moreover, it enhances shareholders value by undertaking frequent share buyback programs. Also, in the last three months, its shares have outperformed the industry it belongs to. However, significant cash outflows from operations, huge capital expenditures and volatile used car prices are few headwinds CarMax is facing.”

KMX has been the topic of several other research reports. Citigroup Inc boosted their price target on CarMax to $84.00 and gave the stock a buy rating in a research report on Monday, September 25th. Deutsche Bank AG decreased their target price on CarMax from $73.00 to $72.00 and set a buy rating on the stock in a report on Tuesday, July 4th. Goldman Sachs Group, Inc. (The) downgraded CarMax from a buy rating to a neutral rating and boosted their price target for the company from $74.00 to $79.00 in a research note on Monday, September 25th. Wedbush restated an outperform rating and issued a $81.00 price target (up from $77.00) on shares of CarMax in a research note on Monday, September 25th. Finally, CIBC reiterated a market perform rating on shares of CarMax in a research report on Thursday, October 5th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the stock. The company has a consensus rating of Hold and a consensus price target of $77.93.

CarMax (KMX) traded up $0.73 during trading hours on Tuesday, hitting $75.19. 698,773 shares of the stock traded hands, compared to its average volume of 1,198,971. The company has a quick ratio of 0.48, a current ratio of 2.33 and a debt-to-equity ratio of 3.82. The firm has a market capitalization of $13.85 billion, a price-to-earnings ratio of 20.87, a P/E/G ratio of 1.28 and a beta of 1.52.

CarMax (NYSE:KMX) last issued its earnings results on Friday, September 22nd. The company reported $0.98 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.95 by $0.03. CarMax had a return on equity of 21.88% and a net margin of 4.09%. The firm had revenue of $4.39 billion for the quarter, compared to analysts’ expectations of $4.26 billion. During the same quarter last year, the business earned $0.88 earnings per share. The company’s revenue was up 9.7% compared to the same quarter last year. analysts expect that CarMax will post 3.83 earnings per share for the current year.

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In related news, SVP Diane L. Cafritz sold 5,671 shares of the business’s stock in a transaction dated Wednesday, September 27th. The stock was sold at an average price of $73.95, for a total transaction of $419,370.45. Following the transaction, the senior vice president now owns 7,475 shares in the company, valued at approximately $552,776.25. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Thomas J. Folliard sold 16,000 shares of the business’s stock in a transaction dated Friday, September 15th. The shares were sold at an average price of $68.39, for a total value of $1,094,240.00. Following the transaction, the director now owns 495,572 shares in the company, valued at approximately $33,892,169.08. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 596,955 shares of company stock valued at $44,119,718. Corporate insiders own 1.70% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of the company. Korea Investment CORP lifted its position in CarMax by 140.5% in the 2nd quarter. Korea Investment CORP now owns 1,768 shares of the company’s stock valued at $111,000 after acquiring an additional 1,033 shares in the last quarter. State of Alaska Department of Revenue bought a new position in shares of CarMax during the 2nd quarter valued at $112,000. Seven Eight Capital LP purchased a new stake in shares of CarMax in the 2nd quarter worth $133,000. YorkBridge Wealth Partners LLC increased its stake in shares of CarMax by 1.3% in the 2nd quarter. YorkBridge Wealth Partners LLC now owns 2,331 shares of the company’s stock worth $149,000 after purchasing an additional 29 shares in the last quarter. Finally, QS Investors LLC increased its stake in shares of CarMax by 1.0% in the 2nd quarter. QS Investors LLC now owns 2,333 shares of the company’s stock worth $147,000 after purchasing an additional 22 shares in the last quarter.

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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