CarMax, a prominent automotive retail company traded on the New York Stock Exchange under the ticker symbol KMX, recently released its earnings report for the quarter ending June 23rd. The company’s financial performance surpassed analysts’ expectations, with an earnings per share (EPS) of $1.44 compared to the consensus estimate of $0.79.
During this quarter, CarMax generated approximately $7.69 billion in revenue, exceeding the consensus estimate of $7.49 billion. Despite facing challenging market conditions, the company demonstrated resilience by maintaining a net margin of 1.64% and achieving a return on equity of 7.46%.
It is worth noting that CarMax experienced a decline in quarterly revenue compared to the same period last year, with a decrease of 17.4%. In the previous year’s corresponding quarter, the company had earned an EPS of $1.56.
In other news related to CarMax, CEO William D. Nash executed a significant stock transaction by selling 170,646 shares on July 3rd at an average price of $82.57 per share. The total value of this transaction amounted to an impressive $14,090,240.22. Following this sale, Nash now holds 177,180 shares directly in the company’s stock with an estimated value of $14,629,752.60.
Additionally, SVP Jon G. Daniels sold 27,783 shares on June 28th at an average price of $82.42 per share for a total transaction sum of roughly $2,289,874.86. Following this transaction, Daniels currently possesses 7,255 shares valued at approximately $597,957.10.
These significant stock transactions carried out by high-level executives were disclosed through legal filings with the Securities and Exchange Commission (SEC), accessible through their official website.
Furthermore, it is noteworthy that insiders within CarMax have collectively sold a total of 304,993 shares of company stock within the last three months. The cumulative value of these transactions amounts to an estimated $25,375,428. Presently, insiders own approximately 1.66% of CarMax’s outstanding stock.
The recent earnings report and notable stock transactions indicate that CarMax continues to navigate the automotive retail industry with steady financial performance and strategic decision-making by its executives. Investors and analysts alike are keenly observing the company’s trajectory to determine its future prospects in the market.
As reference data, all information provided is accurate as of September 23, 2023.
Updated on: 03/12/2023
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
We did not find social sentiment data for this stock
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Loop Capital Markets
CarMax’s Q2 2024 Earnings Estimates Lowered by William Blair, Analysts Have Mixed Ratings
CarMax, Inc. (NYSE:KMX) recently had its Q2 2024 earnings per share (EPS) estimates lowered by equities researchers at William Blair. According to a research note released on Thursday, September 21st, analyst S. Zackfia now forecasts that the company will post earnings of $0.67 per share for the quarter, down from their previous projection of $0.78 per share. The consensus estimate for CarMax’s current full-year earnings is $2.99 per share. William Blair also provided estimates for CarMax’s Q3 2024 earnings at $0.38 EPS, Q4 2024 earnings at $0.64 EPS, and FY2025 earnings at $3.87 EPS.
Numerous other analysts have also published research reports on the stock. Evercore ISI increased their price target on shares of CarMax from $76 to $83 in a research note issued on June 26th. StockNews.com initiated coverage on CarMax in a research note on August 17th and rated the company as a “sell.” Oppenheimer raised their target price on shares of CarMax from $85 to $105 and gave the stock an “outperform” rating in a research note on July 14th. Truist Financial also raised their target price from $64 to $82 in a research note published on June 26th. Lastly, Wedbush reconfirmed a “neutral” rating and set a $85 target price for CarMax shares in another research note issued on Tuesday.
Notably, three investment analysts have given the stock a sell rating, six have assigned it a hold rating, and four have labeled it as a buy rating, according to Bloomberg.com data. The average price target for CarMax stands at approximately $77.60.
In other news surrounding CarMax, CEO William D. Nash sold 170,646 shares of the company’s stock on Monday, July 3rd. The shares were sold at an average price of $82.57, amounting to a total transaction value of $14,090,240.22. Following this sale, Nash now holds 177,180 shares valued at approximately $14,629,752.60. The sale was disclosed in a legal filing with the SEC and is available for public viewing on its website. Additionally, SVP Jon G. Daniels sold 27,783 shares of CarMax stock on Wednesday, June 28th at an average price of $82.42 per share.
Overall, insiders have collectively sold 304,993 shares of CarMax worth $25,375,428 within the last three months. This represents approximately 1.66% of the company’s stock that is currently owned by insiders.
As of September 23rd, CarMax’s stock (KMX) opened at $78.90 per share and has a market capitalization of $12.48 billion. With a PE ratio of 27.11 and a beta score of 1.44 indicating higher volatility compared to the broader market index; CarMax remains an intriguing investment choice for investors seeking exposure in automotive retail industry.
The firm currently maintains a fifty-day simple moving average price of $82.58 and a two-hundred day simple moving average price of $75.36; these variables are quite influential when considering potential investment opportunities within CarMax’s stock.
CarMax has also achieved notable financial liquidity ratios with the current ratio standing at 2.54 and a quick ratio at 0.61 implying adequate short-term liquidity levels for operational needs. However, investors should be cognizant that CarMax carries considerable debt burden with a debt-to-equity ratio measuring at 3.12.
In terms of comparative performance evaluation relative to its historical trading range over the past twelve months, CarMax has observed a price low of $52.10 and a high of $87.50.
Several institutional investors and hedge funds have recently made adjustments to their holdings in KMX stock. For instance, Larson Financial Group LLC purchased a new stake in CarMax shares during the first quarter valued at approximately $25,000. Park Place Capital Corp also significantly increased its holdings by 125.8% during the second quarter and now owns 298 shares worth around $25,000. CENTRAL TRUST Co augmented its holdings by 100% during the third quarter and now has 400 shares valued at $26,000. Furthermore, Blume Capital Management Inc. initiated a new stake in CarMax during the first quarter valued at about $31,000. Lastly, Capital Advisors Ltd. LLC expanded its holdings by a striking 456.5% in Q2 2024; currently owning 384 shares worth around $32,000.
To summarize, William Blair’s downgraded earnings estimates for CarMax depict an uncertain short-term outlook for the company’s financial performance into Q2 of 2024. However, various analysts’ ratings have varied significantly regarding future prospects – with sell ratings from some and outperform ratings from others. The recent