CarMax (NYSE:KMX) Downgraded by Wall Street Zen to Sell

CarMax (NYSE:KMX) was downgraded by Wall Street Zen from a “hold” rating to a “sell” rating in a research note issued on Sunday.

KMX has been the topic of several other reports. Argus upgraded CarMax to a “hold” rating in a report on Thursday, April 16th. Robert W. Baird upped their target price on CarMax from $44.00 to $48.00 and gave the company an “outperform” rating in a report on Wednesday, February 18th. Stephens upped their target price on CarMax from $39.00 to $43.00 and gave the company an “equal weight” rating in a report on Thursday, April 2nd. Weiss Ratings reiterated a “sell (d)” rating on shares of CarMax in a report on Wednesday, April 8th. Finally, UBS Group initiated coverage on CarMax in a report on Wednesday. They issued a “neutral” rating and a $42.00 target price on the stock. One equities research analyst has rated the stock with a Buy rating, fourteen have issued a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and a consensus price target of $41.27.

CarMax Price Performance

Shares of KMX opened at $44.51 on Friday. CarMax has a 1 year low of $30.26 and a 1 year high of $71.99. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.20 and a quick ratio of 0.49. The company has a market capitalization of $6.31 billion, a price-to-earnings ratio of 27.82, a price-to-earnings-growth ratio of 1.69 and a beta of 1.19. The business has a 50-day moving average of $40.64 and a 200-day moving average of $41.19.

CarMax (NYSE:KMX) last announced its earnings results on Tuesday, April 14th. The company reported $0.34 EPS for the quarter, beating the consensus estimate of $0.22 by $0.12. CarMax had a return on equity of 7.00% and a net margin of 0.96%.The business had revenue of $5.95 billion for the quarter, compared to analysts’ expectations of $5.65 billion. During the same period in the prior year, the business posted $0.58 earnings per share. The firm’s revenue was down 1.0% on a year-over-year basis. As a group, equities research analysts anticipate that CarMax will post 2.3 earnings per share for the current year.

Hedge Funds Weigh In On CarMax

A number of institutional investors and hedge funds have recently modified their holdings of KMX. AQR Capital Management LLC lifted its holdings in shares of CarMax by 151.8% in the 4th quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock worth $306,429,000 after purchasing an additional 4,780,903 shares in the last quarter. SRS Investment Management LLC lifted its holdings in shares of CarMax by 1,717.5% in the 4th quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock worth $217,845,000 after purchasing an additional 5,327,603 shares in the last quarter. Janus Henderson Group PLC lifted its holdings in shares of CarMax by 1.1% in the 1st quarter. Janus Henderson Group PLC now owns 4,580,807 shares of the company’s stock worth $190,471,000 after purchasing an additional 49,987 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of CarMax by 7.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,275,663 shares of the company’s stock worth $177,767,000 after purchasing an additional 289,768 shares in the last quarter. Finally, Norges Bank bought a new position in shares of CarMax in the 4th quarter worth $159,232,000.

About CarMax

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.