CarMax (NYSE:KMX) Announces Quarterly Earnings Results

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

CarMax Stock Performance

Shares of KMX opened at $78.17 on Friday. The company has a market capitalization of $12.20 billion, a price-to-earnings ratio of 30.54, a price-to-earnings-growth ratio of 1.56 and a beta of 1.69. CarMax has a 52-week low of $59.66 and a 52-week high of $88.22. The company has a quick ratio of 0.60, a current ratio of 2.50 and a debt-to-equity ratio of 2.95. The stock has a 50 day moving average price of $79.76 and a 200 day moving average price of $76.40.

Insiders Place Their Bets

In related news, CEO William D. Nash sold 120,000 shares of the company’s stock in a transaction dated Thursday, July 11th. The stock was sold at an average price of $79.62, for a total value of $9,554,400.00. Following the completion of the sale, the chief executive officer now directly owns 181,683 shares of the company’s stock, valued at approximately $14,465,600.46. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In related news, CEO William D. Nash sold 120,000 shares of CarMax stock in a transaction on 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 transaction, the chief executive officer now directly owns 181,683 shares in the company, valued at approximately $14,465,600.46. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP John M. Stuckey III sold 19,673 shares of the company’s stock in a transaction on Monday, July 15th. The stock was sold at an average price of $82.01, for a total transaction of $1,613,382.73. Following the transaction, the senior vice president now owns 969 shares of the company’s stock, valued at approximately $79,467.69. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 184,012 shares of company stock valued at $14,803,843. 1.66% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

KMX has been the subject of several analyst reports. StockNews.com upgraded CarMax to a “sell” rating in a research report on Friday, July 26th. Royal Bank of Canada increased their price objective on CarMax from $73.00 to $75.00 and gave the company an “outperform” rating in a research note on Monday, June 24th. Needham & Company LLC increased their price target on CarMax from $87.00 to $90.00 and gave the company a “buy” rating in a research report on Friday. Evercore ISI boosted their price objective on CarMax from $76.00 to $79.00 and gave the stock an “in-line” rating in a research report on Friday. Finally, Mizuho cut their target price on shares of CarMax from $75.00 to $72.00 and set a “neutral” rating on the stock in a research note on Tuesday, June 18th. Three investment 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. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $78.33.

CarMax Company Profile

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.