CarMax (NYSE:KMX) Announces Quarterly Earnings Results, Misses Estimates By $0.01 EPS

CarMax (NYSE:KMX) issued its quarterly earnings data on Thursday. The company reported $0.85 EPS for the quarter, missing analysts’ consensus estimates of $0.86 by ($0.01), Briefing.com reports. The business had revenue of $7.01 billion during the quarter, compared to the consensus estimate of $6.83 billion. CarMax had a return on equity of 6.64% and a net margin of 1.55%. The business’s quarterly revenue was down .9% on a year-over-year basis. During the same period last year, the firm earned $0.75 EPS.

CarMax Price Performance

Shares of KMX opened at $77.29 on Friday. The company has a debt-to-equity ratio of 2.95, a current ratio of 2.50 and a quick ratio of 0.60. The company’s fifty day moving average price is $79.71 and its 200-day moving average price is $76.37. CarMax has a 1-year low of $59.66 and a 1-year high of $88.22. The firm has a market capitalization of $12.06 billion, a PE ratio of 30.19, a price-to-earnings-growth ratio of 1.56 and a beta of 1.69.

Insider Buying and Selling

In related news, CEO William D. Nash sold 120,000 shares of CarMax 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 owns 181,683 shares of the company’s stock, valued at $14,465,600.46. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In other CarMax news, EVP Mohammad Shamim sold 25,000 shares of the stock in a transaction dated Friday, July 26th. The stock was sold at an average price of $82.26, for a total transaction of $2,056,500.00. Following the sale, the executive vice president now directly owns 11,738 shares of the company’s stock, valued at approximately $965,567.88. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO William D. Nash sold 120,000 shares of the business’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 transaction, the chief executive officer now directly 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. Insiders sold 184,012 shares of company stock worth $14,803,843 in the last 90 days. Insiders own 1.66% of the company’s stock.

Analyst Ratings Changes

Several research firms have recently commented on KMX. Truist Financial boosted their price target on CarMax from $70.00 to $75.00 and gave the stock a “hold” rating in a research report on Monday, September 23rd. Morgan Stanley reissued an “overweight” rating and set a $80.00 price target on shares of CarMax in a research report on Friday, June 21st. StockNews.com raised shares of CarMax to a “sell” rating in a research report on Friday, July 26th. Royal Bank of Canada increased their target price on shares of CarMax from $75.00 to $82.00 and gave the company an “outperform” rating in a research report on Friday. Finally, Wedbush reaffirmed an “outperform” rating and issued a $95.00 price target on shares of CarMax in a report on Tuesday, September 17th. Three research analysts have rated the stock with a sell rating, five have given a hold rating and six have issued a buy rating to the company’s stock. According to data from MarketBeat.com, CarMax has an average rating of “Hold” and an average price target of $78.92.

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.