CarMax Inc (NYSE:KMX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.

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.”

Several other brokerages also recently weighed in on KMX. UBS AG downgraded CarMax from an “outperform” rating to a “market perform” rating in a report on Thursday, October 5th. Oppenheimer Holdings, Inc. downgraded CarMax from an “outperform” rating to a “market perform” rating and set a $80.00 price target on the stock. in a report on Thursday, October 5th. CIBC reiterated a “market perform” rating on shares of CarMax in a report on Thursday, October 5th. Berenberg Bank began coverage on CarMax in a report on Wednesday, October 4th. They issued a “hold” rating and a $83.00 price target on the stock. Finally, Credit Suisse Group increased their price target on CarMax from $75.00 to $83.00 and gave the stock an “outperform” rating in a report on Friday, September 29th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average price target of $77.93.

Shares of CarMax (KMX) traded up 0.44% during midday trading on Tuesday, hitting $75.28. The stock had a trading volume of 535,411 shares. CarMax has a 52-week low of $47.50 and a 52-week high of $77.64. The company has a market cap of $13.73 billion, a PE ratio of 20.73 and a beta of 1.38. The company’s 50 day moving average is $73.69 and its 200 day moving average is $65.81.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Friday, September 22nd. The company reported $0.98 earnings per share for the quarter, topping the 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 the consensus estimate of $4.26 billion. During the same period in the prior year, the business posted $0.88 earnings per share. The company’s revenue for the quarter was up 9.7% on a year-over-year basis. On average, analysts anticipate that CarMax will post $3.81 earnings per share for the current year.

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In other CarMax news, SVP Jon G. Daniels sold 50,488 shares of the stock in a transaction on Tuesday, September 26th. The stock was sold at an average price of $73.68, for a total transaction of $3,719,955.84. Following the sale, the senior vice president now owns 45,471 shares of the company’s stock, valued at approximately $3,350,303.28. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Thomas J. Folliard sold 16,000 shares of the stock in a transaction on 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 sale, the director now directly owns 495,572 shares in the company, valued at approximately $33,892,169.08. The disclosure for this sale can be found here. Insiders have sold a total of 584,502 shares of company stock worth $43,183,127 in the last ninety days. Insiders own 1.90% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. BP PLC bought a new stake in CarMax during the 3rd quarter valued at $1,668,000. Victory Capital Management Inc. boosted its position in CarMax by 15.3% during the 3rd quarter. Victory Capital Management Inc. now owns 24,947 shares of the company’s stock valued at $1,891,000 after acquiring an additional 3,314 shares in the last quarter. Crossmark Global Holdings Inc. bought a new stake in CarMax during the 3rd quarter valued at $904,000. Penserra Capital Management LLC bought a new stake in CarMax during the 3rd quarter valued at $416,000. Finally, Raymond James Financial Services Advisors Inc. boosted its position in CarMax by 1.5% during the 3rd quarter. Raymond James Financial Services Advisors Inc. now owns 60,369 shares of the company’s stock valued at $4,577,000 after acquiring an additional 867 shares in the last quarter.

CarMax Company Profile

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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