StockNews.com Upgrades CarMax (NYSE:KMX) to Sell

StockNews.com upgraded shares of CarMax (NYSE:KMX) to a sell rating in a research report sent to investors on Friday.

Several other research analysts also recently weighed in on KMX. Evercore ISI boosted their price target on CarMax from $68.00 to $72.00 and gave the company an in-line rating in a report on Tuesday, July 16th. Oppenheimer reiterated an outperform rating and issued a $105.00 price target on shares of CarMax in a report on Monday, June 24th. Royal Bank of Canada upped their price objective on CarMax from $73.00 to $75.00 and gave the stock an outperform rating in a report on Monday, June 24th. Argus upgraded CarMax to a hold rating in a report on Tuesday, June 25th. Finally, Morgan Stanley restated an overweight rating and set a $80.00 price objective on shares of CarMax in a report on Friday, June 21st. Three investment analysts have rated the stock with a sell rating, five have issued a hold rating and six have given a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of Hold and an average price target of $76.25.

CarMax Trading Up 0.3 %

Shares of KMX opened at $83.26 on Friday. The stock has a fifty day moving average of $73.88 and a two-hundred day moving average of $74.54. The company has a debt-to-equity ratio of 2.95, a quick ratio of 0.60 and a current ratio of 2.50. The company has a market capitalization of $13.00 billion, a PE ratio of 32.52, a price-to-earnings-growth ratio of 1.69 and a beta of 1.69. CarMax has a fifty-two week low of $59.66 and a fifty-two week high of $88.22.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Friday, June 21st. The company reported $0.97 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.03. The company had revenue of $7.11 billion during the quarter, compared to the consensus estimate of $7.16 billion. CarMax had a return on equity of 6.64% and a net margin of 1.55%. CarMax’s revenue was down 7.5% on a year-over-year basis. During the same period in the previous year, the firm posted $1.16 EPS. As a group, analysts forecast that CarMax will post 2.99 EPS for the current year.

Insider Buying and Selling at CarMax

In other CarMax news, SVP Jon G. Daniels sold 1,231 shares of the firm’s stock in a transaction dated Wednesday, June 26th. The stock was sold at an average price of $72.46, for a total value of $89,198.26. Following the transaction, the senior vice president now directly owns 995 shares of the company’s stock, valued at $72,097.70. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In other news, CEO William D. Nash sold 120,000 shares of the firm’s stock in a transaction dated Thursday, July 11th. The stock was sold at an average price of $79.62, for a total transaction of $9,554,400.00. Following the completion of the sale, the chief executive officer now directly owns 181,683 shares in the company, valued at $14,465,600.46. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Jon G. Daniels sold 1,231 shares of the firm’s stock in a transaction dated Wednesday, June 26th. The shares were sold at an average price of $72.46, for a total value of $89,198.26. Following the sale, the senior vice president now owns 995 shares of the company’s stock, valued at $72,097.70. The disclosure for this sale can be found here. Insiders have sold 185,243 shares of company stock valued at $14,893,042 over the last three months. 1.66% of the stock is owned by company insiders.

Institutional Trading of CarMax

Large investors have recently modified their holdings of the business. Allworth Financial LP grew its stake in CarMax by 153.3% in the fourth quarter. Allworth Financial LP now owns 342 shares of the company’s stock worth $26,000 after purchasing an additional 207 shares in the last quarter. First Community Trust NA acquired a new position in CarMax in the second quarter worth about $29,000. Mendota Financial Group LLC acquired a new position in CarMax in the fourth quarter worth about $37,000. Blue Trust Inc. grew its stake in CarMax by 134.1% in the second quarter. Blue Trust Inc. now owns 501 shares of the company’s stock worth $37,000 after purchasing an additional 287 shares in the last quarter. Finally, MCF Advisors LLC acquired a new position in CarMax in the fourth quarter worth about $46,000.

About CarMax

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.