CarMax Inc (NYSE:KMX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Friday.

According to Zacks, “CarMax focuses on the used-car market and is the one of the strongest operators, which places the company in a better position in the market, in comparison to its peers. The company is following store expansion initiative, which will further help the company to better position itself in the market. Moreover, frequent share repurchases will boost shareholders’ value. Its shares have also outperformed against the industry it belongs to, in the last six months. However, unstable used car prices in the market and high capital expenses are few concerns CarMax has been facing, which can negatively impact its financials.”

A number of other research analysts have also recently commented on KMX. Wedbush restated a “hold” rating on shares of CarMax in a research note on Saturday, April 8th. Susquehanna Bancshares Inc set a $70.00 price objective on CarMax and gave the stock a “buy” rating in a research note on Friday, April 7th. UBS AG cut CarMax from a “positive” rating to a “neutral” rating in a research note on Thursday, June 22nd. Goldman Sachs Group, Inc. (The) restated a “buy” rating and set a $74.00 price objective (up previously from $72.00) on shares of CarMax in a research note on Thursday, June 22nd. Finally, Deutsche Bank AG reduced their price objective on CarMax from $73.00 to $72.00 and set a “buy” rating on the stock in a research note on Tuesday, July 4th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating, eight have issued a buy rating and one has issued a strong buy rating to the stock. The company has a consensus rating of “Buy” and a consensus price target of $69.00.

Shares of CarMax (NYSE KMX) traded up 0.52% during midday trading on Friday, reaching $66.06. The company’s stock had a trading volume of 736,817 shares. The firm has a market capitalization of $12.11 billion, a price-to-earnings ratio of 18.97 and a beta of 1.34. The firm’s 50 day moving average is $63.73 and its 200 day moving average is $62.81. CarMax has a 52 week low of $47.50 and a 52 week high of $69.11.

CarMax (NYSE:KMX) last issued its earnings results on Wednesday, June 21st. The company reported $1.13 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.98 by $0.15. CarMax had a return on equity of 21.72% and a net margin of 4.07%. The firm had revenue of $4.54 billion for the quarter, compared to analysts’ expectations of $4.46 billion. During the same quarter last year, the firm earned $0.90 earnings per share. The firm’s revenue for the quarter was up 10.1% compared to the same quarter last year. Equities analysts forecast that CarMax will post $3.70 EPS for the current fiscal year.

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In related news, SVP Mohammad Shamim sold 13,938 shares of the business’s stock in a transaction dated Friday, July 28th. The stock was sold at an average price of $66.08, for a total value of $921,023.04. Following the transaction, the senior vice president now owns 9,218 shares in the company, valued at $609,125.44. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Thomas J. Folliard sold 50,000 shares of the business’s stock in a transaction dated Friday, June 23rd. The stock was sold at an average price of $61.41, for a total value of $3,070,500.00. Following the completion of the transaction, the director now owns 509,166 shares in the company, valued at approximately $31,267,884.06. The disclosure for this sale can be found here. In the last quarter, insiders sold 188,515 shares of company stock worth $12,085,019. Insiders own 1.90% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in KMX. Thrivent Financial for Lutherans boosted its position in CarMax by 5.9% in the fourth quarter. Thrivent Financial for Lutherans now owns 6,630 shares of the company’s stock valued at $427,000 after buying an additional 370 shares during the period. Quadrature Capital Ltd purchased a new stake in shares of CarMax during the fourth quarter valued at $373,000. Teachers Advisors LLC raised its stake in shares of CarMax by 6.1% in the fourth quarter. Teachers Advisors LLC now owns 255,508 shares of the company’s stock valued at $16,452,000 after buying an additional 14,602 shares in the last quarter. Kentucky Retirement Systems purchased a new stake in shares of CarMax during the fourth quarter valued at $889,000. Finally, Kentucky Retirement Systems Insurance Trust Fund purchased a new stake in shares of CarMax during the fourth quarter valued at $397,000.

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.

Analyst Recommendations for CarMax (NYSE:KMX)

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