Zacks Investment Research lowered shares of CarMax (NYSE:KMX) from a buy rating to a hold rating in a research note issued to investors on Thursday morning, Zacks.com reports. They currently have $104.00 target price on the stock.

According to Zacks, “Shares of CarMax have outperformed the broader industry year to date. The company  has been benefitting from an aggressive store expansion initiative in existing as well as new television markets. Strong market presence through store expansion and robust demand for used vehicles are the major drivers of year-over-year growth. Apart from store openings in new and existing markets, it is expanding presence through digital platforms. Also, strong balance sheet aids CarMax in rewarding shareholders through share buybacks and investment in technology. However, an ample supply of off-lease used vehicles may lead to lower prices. Rising SG&A expenses is another concern. The U.S.-Sino trade tension also remains a major concern. Resultantly, investors are recommended to wait for a better entry point.”

Other analysts have also issued reports about the company. Guggenheim boosted their price target on CarMax from $95.00 to $100.00 and gave the company a buy rating in a report on Wednesday, September 25th. William Blair restated a buy rating on shares of CarMax in a report on Friday, December 6th. Wedbush boosted their price target on CarMax from $80.00 to $98.00 and gave the company a neutral rating in a report on Monday, November 18th. Buckingham Research boosted their price target on CarMax from $94.00 to $96.00 and gave the company a neutral rating in a report on Wednesday, September 25th. Finally, Stephens boosted their price target on CarMax from $95.00 to $103.00 and gave the company an overweight rating in a report on Wednesday, September 25th. Five analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average target price of $99.04.

Shares of CarMax stock opened at $97.88 on Thursday. The firm has a market cap of $16.29 billion, a price-to-earnings ratio of 20.43, a price-to-earnings-growth ratio of 1.49 and a beta of 1.14. The stock’s 50-day moving average is $96.51 and its 200-day moving average is $88.27. CarMax has a one year low of $55.24 and a one year high of $100.49. The company has a debt-to-equity ratio of 4.11, a current ratio of 2.42 and a quick ratio of 0.56.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Tuesday, September 24th. The company reported $1.40 EPS for the quarter, beating analysts’ consensus estimates of $1.33 by $0.07. The company had revenue of $5.20 billion for the quarter, compared to analyst estimates of $5.06 billion. CarMax had a return on equity of 25.50% and a net margin of 4.60%. The company’s quarterly revenue was up 9.1% compared to the same quarter last year. During the same period in the previous year, the company posted $1.24 earnings per share. On average, equities analysts expect that CarMax will post 5.3 EPS for the current year.

In related news, SVP Darren C. Newberry sold 24,551 shares of the company’s stock in a transaction dated Friday, October 11th. The stock was sold at an average price of $90.51, for a total transaction of $2,222,111.01. Following the sale, the senior vice president now owns 7,413 shares in the company, valued at $670,950.63. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 2.09% of the company’s stock.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in KMX. First Trust Advisors LP raised its holdings in CarMax by 0.3% during the first quarter. First Trust Advisors LP now owns 65,476 shares of the company’s stock worth $4,570,000 after acquiring an additional 167 shares in the last quarter. BNP Paribas Arbitrage SA raised its holdings in CarMax by 83.6% during the second quarter. BNP Paribas Arbitrage SA now owns 21,495 shares of the company’s stock worth $1,866,000 after acquiring an additional 9,788 shares in the last quarter. Aperio Group LLC raised its holdings in CarMax by 2.9% during the second quarter. Aperio Group LLC now owns 79,786 shares of the company’s stock worth $6,928,000 after acquiring an additional 2,235 shares in the last quarter. Stevens Capital Management LP bought a new stake in CarMax during the second quarter worth about $1,164,000. Finally, Coastal Investment Advisors Inc. raised its holdings in CarMax by 11.5% during the second quarter. Coastal Investment Advisors Inc. now owns 7,683 shares of the company’s stock worth $662,000 after acquiring an additional 795 shares in the last quarter.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, CarMax Sales Operations and CarMax Auto Finance. It offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles; vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions; and extended protection plans to customers at the time of sale.

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