CarMax (NYSE:KMX) Issues Quarterly Earnings Results, Misses Estimates By $0.13 EPS

CarMax (NYSE:KMX) posted its quarterly earnings results on Thursday. The company reported $0.32 EPS for the quarter, missing the consensus estimate of $0.45 by ($0.13), RTT News reports. CarMax had a return on equity of 7.72% and a net margin of 1.87%. The company had revenue of $5.63 billion during the quarter, compared to analysts’ expectations of $5.76 billion. During the same period in the prior year, the business earned $0.44 EPS. The company’s quarterly revenue was down 1.7% on a year-over-year basis.

CarMax Stock Down 9.2 %

KMX stock opened at $71.98 on Friday. The firm’s fifty day simple moving average is $78.83 and its 200-day simple moving average is $72.24. The company has a market capitalization of $11.37 billion, a P/E ratio of 22.85, a price-to-earnings-growth ratio of 1.20 and a beta of 1.61. The company has a debt-to-equity ratio of 3.01, a current ratio of 2.45 and a quick ratio of 0.71. CarMax has a 12 month low of $59.66 and a 12 month high of $88.22.

Insider Activity

In other news, EVP Diane L. Cafritz sold 22,000 shares of the company’s stock in a transaction 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 sale, the executive vice president now directly owns 5,073 shares of the company’s stock, valued at approximately $355,515.84. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other news, EVP Diane L. Cafritz sold 22,000 shares of the company’s stock in a transaction 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 sale, the executive vice president now directly owns 5,073 shares of the company’s stock, valued at approximately $355,515.84. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Diane L. Cafritz sold 2,730 shares of the company’s stock in a transaction on Tuesday, January 23rd. The shares were sold at an average price of $70.54, for a total transaction of $192,574.20. Following the completion of the sale, the executive vice president now directly owns 5,073 shares in the company, valued at $357,849.42. The disclosure for this sale can be found here. Insiders have sold 38,929 shares of company stock valued at $2,740,901 in the last ninety days. Insiders own 1.66% of the company’s stock.

Hedge Funds Weigh In On CarMax

Several large investors have recently made changes to their positions in the company. Public Employees Retirement System of Ohio lifted its stake in shares of CarMax by 2.8% in the 4th quarter. Public Employees Retirement System of Ohio now owns 66,162 shares of the company’s stock valued at $5,077,000 after purchasing an additional 1,808 shares during the period. Mercer Global Advisors Inc. ADV lifted its stake in shares of CarMax by 6.9% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 9,650 shares of the company’s stock valued at $741,000 after purchasing an additional 624 shares during the period. Main Street Group LTD acquired a new position in shares of CarMax in the 4th quarter valued at $70,000. Legal & General Group Plc lifted its stake in shares of CarMax by 24.2% in the 4th quarter. Legal & General Group Plc now owns 1,033,751 shares of the company’s stock valued at $79,330,000 after purchasing an additional 201,613 shares during the period. Finally, Van Lanschot Kempen Investment Management N.V. lifted its stake in shares of CarMax by 25.8% in the 4th quarter. Van Lanschot Kempen Investment Management N.V. now owns 1,134,954 shares of the company’s stock valued at $87,096,000 after purchasing an additional 233,092 shares during the period.

Analysts Set New Price Targets

KMX has been the subject of several recent research reports. Evercore ISI boosted their price target on shares of CarMax from $78.00 to $85.00 and gave the company an “in-line” rating in a report on Tuesday, March 26th. Royal Bank of Canada reaffirmed an “outperform” rating and issued a $83.00 price objective on shares of CarMax in a research report on Monday. Bank of America lifted their price objective on shares of CarMax from $44.00 to $50.00 and gave the stock an “underperform” rating in a research report on Thursday, February 29th. Mizuho began coverage on shares of CarMax in a research report on Tuesday, March 19th. They issued a “neutral” rating and a $80.00 price objective on the stock. Finally, Needham & Company LLC raised shares of CarMax from a “hold” rating to a “buy” rating and set a $99.00 price objective on the stock in a research report on Wednesday, March 20th. Three research analysts have rated the stock with a sell rating, five have given a hold rating and five have given a buy rating to the company. Based on data from MarketBeat.com, CarMax presently has a consensus rating of “Hold” and a consensus price target of $81.25.

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.