CarMax (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, “CarMax is one of the strongest operators in the used-car market and holds 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 six 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.”

Other analysts have also issued research reports about the company. Credit Suisse Group lifted their target price on CarMax from $75.00 to $83.00 and gave the stock an “outperform” rating in a report on Friday, September 29th. Wedbush reissued an “outperform” rating and issued a $77.00 target price (up previously from $73.00) on shares of CarMax in a report on Wednesday, September 13th. Buckingham Research lifted their target price on CarMax from $66.00 to $75.00 and gave the stock a “neutral” rating in a report on Monday, September 25th. Oppenheimer lowered CarMax from an “outperform” rating to a “market perform” rating and set a $80.00 target price for the company. in a report on Thursday, October 5th. Finally, ValuEngine lowered CarMax from a “buy” rating to a “hold” rating in a report on Wednesday, November 15th. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and an average price target of $77.00.

CarMax (NYSE:KMX) traded up $0.49 during trading on Tuesday, hitting $67.97. The company’s stock had a trading volume of 1,107,600 shares, compared to its average volume of 2,217,510. The company has a market cap of $12,303.63, a price-to-earnings ratio of 18.54, a price-to-earnings-growth ratio of 1.14 and a beta of 1.48. CarMax has a twelve month low of $54.29 and a twelve month high of $77.64. The company has a current ratio of 2.33, a quick ratio of 0.48 and a debt-to-equity ratio of 3.82.

CarMax (NYSE:KMX) last posted its earnings results on Friday, September 22nd. The company reported $0.98 EPS for the quarter, topping the Zacks’ consensus estimate of $0.95 by $0.03. The business had revenue of $4.39 billion during the quarter, compared to analyst estimates of $4.26 billion. CarMax had a return on equity of 21.88% and a net margin of 4.09%. The company’s quarterly revenue was up 9.7% compared to the same quarter last year. During the same quarter last year, the company earned $0.88 EPS. research analysts expect that CarMax will post 3.84 earnings per share for the current fiscal year.

In other CarMax news, Director William R. Tiefel sold 23,000 shares of the business’s stock in a transaction dated Tuesday, October 3rd. The stock was sold at an average price of $76.39, for a total transaction of $1,756,970.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 sale, the director now directly owns 495,572 shares of the company’s stock, valued at approximately $33,892,169.08. The disclosure for this sale can be found here. Insiders have sold 625,955 shares of company stock valued at $46,214,378 in the last three months. 1.90% of the stock is currently owned by corporate insiders.

Large investors have recently added to or reduced their stakes in the business. Korea Investment CORP grew its holdings in CarMax by 140.5% during the second quarter. Korea Investment CORP now owns 1,768 shares of the company’s stock valued at $111,000 after purchasing an additional 1,033 shares during the period. Tredje AP fonden bought a new stake in CarMax during the third quarter valued at about $144,000. Seven Eight Capital LP bought a new stake in CarMax during the second quarter valued at about $133,000. YorkBridge Wealth Partners LLC grew its holdings in CarMax by 1.3% during the second quarter. YorkBridge Wealth Partners LLC now owns 2,331 shares of the company’s stock valued at $149,000 after purchasing an additional 29 shares during the period. Finally, QS Investors LLC grew its holdings in CarMax by 1.0% during the second quarter. QS Investors LLC now owns 2,333 shares of the company’s stock valued at $147,000 after purchasing an additional 22 shares during the period.

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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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