CarMax (NYSE:KMX) Lowered to “Sell” Rating by Wall Street Zen

Wall Street Zen downgraded shares of CarMax (NYSE:KMX) from a hold rating to a sell rating in a research note published on Saturday morning.

A number of other equities analysts have also weighed in on the company. Robert W. Baird increased their target price on CarMax from $44.00 to $48.00 and gave the stock an “outperform” rating in a research note on Wednesday, February 18th. Barclays boosted their price target on CarMax from $24.00 to $28.00 and gave the company an “underweight” rating in a research note on Wednesday, January 21st. Zacks Research raised CarMax from a “strong sell” rating to a “hold” rating in a report on Monday, January 5th. Royal Bank Of Canada increased their price objective on CarMax from $34.00 to $37.00 and gave the stock a “sector perform” rating in a research report on Friday, December 19th. Finally, Weiss Ratings reissued a “sell (d)” rating on shares of CarMax in a report on Friday, January 9th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have assigned a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus target price of $39.21.

CarMax Stock Performance

Shares of KMX stock opened at $41.86 on Friday. CarMax has a 52 week low of $30.26 and a 52 week high of $82.79. The company has a market capitalization of $5.94 billion, a price-to-earnings ratio of 13.82, a PEG ratio of 1.00 and a beta of 1.35. The company has a 50-day simple moving average of $44.39 and a 200 day simple moving average of $44.59. The company has a debt-to-equity ratio of 2.74, a quick ratio of 0.51 and a current ratio of 1.99.

CarMax (NYSE:KMX) last released its quarterly earnings results on Thursday, December 18th. The company reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.12. The firm had revenue of $5.79 billion for the quarter, compared to analysts’ expectations of $5.66 billion. CarMax had a net margin of 1.77% and a return on equity of 7.72%. The business’s revenue was down 6.9% on a year-over-year basis. During the same period in the prior year, the firm earned $0.81 EPS. On average, sell-side analysts predict that CarMax will post 3.23 earnings per share for the current year.

Institutional Investors Weigh In On CarMax

A number of large investors have recently added to or reduced their stakes in KMX. World Investment Advisors increased its stake in CarMax by 1.5% during the 4th quarter. World Investment Advisors now owns 111,013 shares of the company’s stock worth $4,290,000 after acquiring an additional 1,643 shares during the period. Midway Capital Research & Management bought a new stake in shares of CarMax during the 4th quarter valued at $1,625,000. Framtiden Holdings Management Co LLC bought a new stake in shares of CarMax during the 4th quarter valued at $20,866,000. Van Diest Capital LLC acquired a new stake in shares of CarMax during the 4th quarter worth $226,000. Finally, Alberta Investment Management Corp acquired a new stake in shares of CarMax during the 4th quarter worth $4,326,000.

CarMax Company Profile

CarMax (NYSE: KMX) is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company’s inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax’s retail locations or browse the company’s online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.