CarMax (NYSE:KMX) Shares Down 5.2%

CarMax, Inc. (NYSE:KMX)’s share price dropped 5.2% during mid-day trading on Tuesday . The stock traded as low as $76.25 and last traded at $76.41. Approximately 603,782 shares changed hands during mid-day trading, a decline of 68% from the average daily volume of 1,887,489 shares. The stock had previously closed at $80.63.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Evercore ISI raised their price target on shares of CarMax from $68.00 to $72.00 and gave the stock an “in-line” rating in a research report on Tuesday, July 16th. Royal Bank of Canada upped their price target on CarMax from $73.00 to $75.00 and gave the company an “outperform” rating in a report on Monday, June 24th. Argus raised CarMax to a “hold” rating in a report on Tuesday, June 25th. Oppenheimer restated an “outperform” rating and issued a $105.00 target price on shares of CarMax in a research note on Monday, June 24th. Finally, Needham & Company LLC decreased their price target on shares of CarMax from $91.00 to $87.00 and set a “buy” rating on the stock in a research note on Monday, June 24th. Three research analysts have rated the stock with a sell rating, five have assigned a hold rating and six have given a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $76.25.

CarMax Stock Performance

The stock has a 50-day moving average of $79.93 and a 200 day moving average of $76.50. 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 firm has a market capitalization of $11.74 billion, a P/E ratio of 29.38, a price-to-earnings-growth ratio of 1.62 and a beta of 1.69.

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

Insider Buying and Selling at CarMax

In other CarMax news, CEO William D. Nash sold 120,000 shares of the business’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 of the company’s stock, valued at approximately $14,465,600.46. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, CFO Enrique N. Mayor-Mora sold 9,318 shares of the firm’s stock in a transaction on Tuesday, July 16th. The stock was sold at an average price of $83.46, for a total value of $777,680.28. Following the transaction, the chief financial officer now directly owns 20,260 shares in the company, valued at approximately $1,690,899.60. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO William D. Nash sold 120,000 shares of the company’s stock in a transaction dated Thursday, July 11th. The shares were sold at an average price of $79.62, for a total value of $9,554,400.00. Following the completion of the sale, the chief executive officer now owns 181,683 shares of the company’s stock, valued at approximately $14,465,600.46. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 185,243 shares of company stock worth $14,893,042. Insiders own 1.66% of the company’s stock.

Hedge Funds Weigh In On CarMax

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. First Community Trust NA bought a new stake in shares of CarMax in the 2nd quarter valued at $29,000. Quarry LP raised its position in shares of CarMax by 78.6% during the second quarter. Quarry LP now owns 418 shares of the company’s stock worth $31,000 after purchasing an additional 184 shares during the period. Blue Trust Inc. lifted its holdings in shares of CarMax by 134.1% during the 2nd quarter. Blue Trust Inc. now owns 501 shares of the company’s stock valued at $37,000 after purchasing an additional 287 shares in the last quarter. Studio Investment Management LLC grew its position in shares of CarMax by 176.7% in the 2nd quarter. Studio Investment Management LLC now owns 523 shares of the company’s stock valued at $38,000 after purchasing an additional 334 shares during the period. Finally, Headlands Technologies LLC bought a new stake in CarMax during the 1st quarter worth approximately $55,000.

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.