CarMax, Inc (KMX) Stock Down Over 7% in Pre-Market Trading After Missing Quarterly Estimates

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CarMax, Inc (NYSE:KMX) shares are trading down 7.63% ($4.36/share) in pre-market trading this morning after the company released their quarterly earnings. Unfortunately for the used-car retailer, numbers didn’t come in quite as nicely as Wall Street had been expecting.

CarMax, Inc (NYSE:KMX), a company that was founded in 1993, surprisingly as a subsidiary of Circuit City, reported earnings of just $0.63 per share for the quarter. This came in well shy of The Street’s consensus estimate of $0.68. Revenue was also a miss as CarMax reported $3.54 million, which missed the estimates of $3.61 million.

It should be interesting to follow this stock as it trades today. Shares of CarMax (KMX) closed at $57.15 during the last trading session. It is down 20.91% since May 15, 2015 and is downtrending. It has underperformed the S&P500 by 18.65%.

From a total of 5 analysts covering Carmax Inc (NYSE:KMX) stock, 3 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 60% of the ratings are positive. The highest target price is $77 while the lowest target price is $65. The mean of all analyst targets is $68.96 which is 20.66% above today’s ($57.15) stock price. Carmax Inc was the topic of 10 analyst reports since August 3, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on December 15 with a “Sector Perform” rating. Oppenheimer maintained shares with a”Outperform” rating and a $77 target share price in their report from a September 21. Oppenheimer downgraded KMX stock in a recent report from September 23 to a “Perform” rating. Wedbush maintained the rating on August 18. Wedbush has a “Neutral” rating and a $70 price target on shares. Finally, Zacks upgraded the stock to a “Hold” rating in a report they issued on an August 25.

The institutional sentiment decreased to 0.95 in Q2 2015. It’s down 0.07, from 1.02 in 2015Q2. The ratio turned negative, as 69 funds sold all their CarMax, Inc shares they owned while 145 reduced their positions. 38 funds bought stakes while 165 increased their total positions. Institutions now own 213.93 million shares which is 4.51% more than the previous share count of 204.70 million in 2015Q2.

Salzman & Co. Inc. holds 16.02% of its total portfolio in CarMax, Inc, equating to 522,489 shares. Abrams Bison Investments Llc owns 1.80 million shares representing 11.75% of their total US portfolio. Moreover, Broad Run Investment Management Llc has 8.05% of their total portfolio invested in the company, equating to 2.39 million shares. The Virginia-based Markel Corp has a total of 7.68% of their portfolio invested in the stock. Avenir Corp, a -based fund reported 1.24 million shares owned.

Since April 9, 2015, the stock had 0 buys, and 3 insider sales for a total of $840,029 in net activity. Shamim Mohammad sold 2,676 shares worth $161,122. Stemberg Thomas sold 7,610 shares worth $505,152. Blaylock Ronald E sold 2,616 shares worth $173,755. Margolin Eric M sold 64,894 shares worth $4.68 million. The insider Hill Edwin J sold 15,955 shares worth $1.14M.

CarMax, Inc. is a holding company engaged in providing used vehicles and related services and products. The company has a market cap of $11.89 billion. The Firm operates through two business divisions: CarMax Sales Operations and CarMax Auto Finance (CAF). It has 19.35 P/E ratio. The Company’s CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations, excluding financing provided by CAF.

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