CarMax (NYSE:KMX) Releases Earnings Results, Misses Expectations By $0.01 EPS

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

CarMax Trading Down 1.1 %

Shares of CarMax stock traded down $0.89 on Friday, reaching $77.32. The company had a trading volume of 2,728,204 shares, compared to its average volume of 1,952,629. The firm’s 50 day moving average price is $79.71 and its two-hundred day moving average price is $76.37. The company has a debt-to-equity ratio of 2.95, a quick ratio of 0.60 and a current ratio of 2.50. CarMax has a 52-week low of $59.66 and a 52-week high of $88.22. The firm has a market cap of $12.07 billion, a PE ratio of 30.19, a PEG ratio of 1.56 and a beta of 1.69.

Insider Buying and Selling

In related news, SVP John M. Stuckey III sold 19,673 shares of the stock in a transaction dated 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 transaction was disclosed in a filing with the SEC, which is available through this hyperlink. In other 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 transaction of $9,554,400.00. Following the completion of the transaction, the chief executive officer now directly owns 181,683 shares of the company’s stock, valued at approximately $14,465,600.46. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP John M. Stuckey III sold 19,673 shares of the firm’s stock in a transaction that occurred 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 sale, the senior vice president now directly owns 969 shares in the company, valued at approximately $79,467.69. The disclosure for this sale can be found here. In the last quarter, insiders sold 184,012 shares of company stock valued at $14,803,843. Company insiders own 1.66% of the company’s stock.

Analyst Upgrades and Downgrades

KMX has been the subject of a number of research analyst reports. Oppenheimer reissued an “outperform” rating and set a $105.00 target price on shares of CarMax in a report on Monday, June 24th. Evercore ISI upped their target price on shares of CarMax from $76.00 to $79.00 and gave the stock an “in-line” rating in a report on Friday. StockNews.com raised shares of CarMax to a “sell” rating in a research note on Friday, July 26th. Morgan Stanley reaffirmed an “overweight” rating and set a $80.00 price objective on shares of CarMax in a research note on Friday, June 21st. Finally, Royal Bank of Canada raised their target price on shares of CarMax from $75.00 to $82.00 and gave the stock an “outperform” rating in a research note on Friday. 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, the company presently has an average rating of “Hold” and an average target price of $78.92.

About CarMax

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.