CarMax (NYSE:KMX) Announces Earnings Results, Misses Expectations By $0.13 EPS

CarMax (NYSE:KMX) announced its earnings results on Thursday. The company reported $0.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.13), RTT News reports. CarMax had a net margin of 1.81% and a return on equity of 7.26%. The firm had revenue of $5.63 billion during the quarter, compared to analyst estimates of $5.76 billion. During the same period in the prior year, the business posted $0.44 EPS. The firm’s quarterly revenue was down 1.7% compared to the same quarter last year.

CarMax Price Performance

CarMax stock opened at $71.40 on Friday. The company has a debt-to-equity ratio of 2.96, a quick ratio of 0.71 and a current ratio of 2.26. CarMax has a 52 week low of $59.66 and a 52 week high of $88.22. The stock has a market capitalization of $11.27 billion, a P/E ratio of 23.56, a price-to-earnings-growth ratio of 1.09 and a beta of 1.61. The stock has a fifty day moving average of $78.80 and a 200-day moving average of $72.20.

Insider Transactions at CarMax

In other news, VP Jill A. Livesay sold 14,199 shares of the business’s stock in a transaction on Monday, January 29th. The stock was sold at an average price of $70.89, for a total transaction of $1,006,567.11. Following the completion of the transaction, the vice president now owns 9,068 shares of the company’s stock, valued at approximately $642,830.52. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In other CarMax news, VP Jill A. Livesay sold 14,199 shares of the stock in a transaction dated Monday, January 29th. The stock was sold at an average price of $70.89, for a total value of $1,006,567.11. Following the completion of the transaction, the vice president now directly owns 9,068 shares in the company, valued at $642,830.52. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Diane L. Cafritz sold 22,000 shares of the company’s stock in a transaction that occurred on Friday, January 26th. The shares were sold at an average price of $70.08, for a total value of $1,541,760.00. Following the completion of the transaction, the executive vice president now directly owns 5,073 shares of the company’s stock, valued at approximately $355,515.84. The disclosure for this sale can be found here. In the last quarter, insiders sold 38,929 shares of company stock valued at $2,740,901. Corporate insiders own 1.66% of the company’s stock.

Institutional Trading of CarMax

A number of institutional investors and hedge funds have recently bought and sold shares of KMX. Norges Bank acquired a new stake in shares of CarMax in the fourth quarter valued at about $288,278,000. Morningstar Investment Services LLC increased its position in CarMax by 95.4% during the 4th quarter. Morningstar Investment Services LLC now owns 2,717,326 shares of the company’s stock valued at $211,516,000 after purchasing an additional 1,326,840 shares during the period. Wellington Management Group LLP increased its position in CarMax by 29.4% during the 1st quarter. Wellington Management Group LLP now owns 3,548,930 shares of the company’s stock valued at $342,400,000 after purchasing an additional 805,438 shares during the period. American Century Companies Inc. increased its position in CarMax by 674.3% during the 3rd quarter. American Century Companies Inc. now owns 806,716 shares of the company’s stock valued at $57,059,000 after purchasing an additional 702,526 shares during the period. Finally, Los Angeles Capital Management LLC increased its position in CarMax by 2,311.1% during the 3rd quarter. Los Angeles Capital Management LLC now owns 603,659 shares of the company’s stock valued at $42,697,000 after purchasing an additional 578,622 shares during the period.

Analyst Upgrades and Downgrades

KMX has been the subject of a number of analyst reports. Wedbush raised their price target on CarMax from $90.00 to $100.00 and gave the company an “outperform” rating in a research note on Tuesday, April 2nd. Truist Financial reduced their target price on CarMax from $75.00 to $72.00 and set a “hold” rating for the company in a research note on Friday. Evercore ISI reduced their target price on CarMax from $85.00 to $74.00 and set an “in-line” rating for the company in a research note on Friday. Oppenheimer reiterated an “outperform” rating and set a $105.00 target price on shares of CarMax in a research note on Tuesday. Finally, Robert W. Baird reduced their target price on CarMax from $88.00 to $84.00 and set an “outperform” rating for the company in a research note on Friday. Three research analysts have rated the stock with a sell rating, five have assigned a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat, CarMax has an average rating of “Hold” and a consensus price target of $78.67.

About CarMax

CarMax, Inc, together with its subsidiaries, operates as a retailer of used vehicles in the United States. It operates in two segments, CarMax Sales Operations and CarMax Auto Finance. The company offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old and has more than 100,000 miles through wholesale auctions.