Zacks Research Downgrades CarMax (NYSE:KMX) to Strong Sell

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

Several other equities analysts have also recently issued reports on the stock. JPMorgan Chase & Co. dropped their price objective on shares of CarMax from $65.00 to $50.00 and set a “neutral” rating on the stock in a research note on Friday, September 26th. Mizuho lowered their price target on shares of CarMax from $80.00 to $78.00 and set a “neutral” rating on the stock in a research note on Thursday, July 3rd. Evercore ISI reaffirmed an “in-line” rating and set a $52.00 price target (down from $80.00) on shares of CarMax in a research note on Friday, September 26th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of CarMax in a research note on Saturday, September 27th. Finally, Benchmark started coverage on shares of CarMax in a research note on Thursday, July 17th. They set a “buy” rating and a $75.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $56.58.

CarMax Stock Performance

Shares of KMX opened at $46.42 on Thursday. The company has a debt-to-equity ratio of 2.87, a quick ratio of 1.06 and a current ratio of 2.46. The stock has a market capitalization of $6.82 billion, a P/E ratio of 13.61, a P/E/G ratio of 0.87 and a beta of 1.27. The company’s fifty day moving average is $56.99 and its two-hundred day moving average is $63.94. CarMax has a 1 year low of $42.75 and a 1 year 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 (EPS) for the quarter, missing the consensus estimate of $1.03 by ($0.39). The firm had revenue of $6.59 billion during the quarter, compared to analyst estimates of $7.07 billion. CarMax had a net margin of 1.98% and a return on equity of 8.51%. The business’s quarterly revenue was down 6.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.85 earnings per share. 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

Several institutional investors and hedge funds have recently made changes to their positions in KMX. Zions Bancorporation National Association UT purchased a new position in CarMax in the 1st quarter valued at about $27,000. CYBER HORNET ETFs LLC purchased a new position in CarMax in the 2nd quarter valued at about $28,000. MUFG Securities EMEA plc purchased a new position in CarMax in the 2nd quarter valued at about $30,000. Accent Capital Management LLC purchased a new position in CarMax in the 1st quarter valued at about $34,000. Finally, Strengthening Families & Communities LLC lifted its holdings in CarMax by 93.1% in the 1st quarter. Strengthening Families & Communities LLC now owns 531 shares of the company’s stock valued at $39,000 after purchasing an additional 256 shares in the last quarter.

CarMax Company Profile

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.