46,979 Shares in CarMax, Inc. $KMX Bought by Jefferies Financial Group Inc.

Key Points

• Jefferies Financial Group acquired a new stake of 46,979 CarMax shares (about $2.11M) in the third quarter, according to its Form 13F filing.
• Activist investor Starboard built roughly a $350M stake, nominated two board candidates and is pushing for a digital overhaul and large cost cuts, raising the likelihood of governance changes and near-term stock volatility.
• CarMax beat quarterly EPS estimates ($0.43 vs. $0.31) but saw revenue decline 6.9% year-over-year; analysts remain mixed with a consensus "Reduce" rating and a $39.21 average price target.

Jefferies Financial Group Inc. acquired a new stake in CarMax, Inc. (NYSE:KMX - Free Report) during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 46,979 shares of the company's stock, valued at approximately $2,108,000.

A number of other large investors also recently bought and sold shares of KMX. CYBER HORNET ETFs LLC purchased a new stake in shares of CarMax in the second quarter valued at about $28,000. MUFG Securities EMEA plc acquired a new position in shares of CarMax during the second quarter worth about $30,000. Center for Financial Planning Inc. purchased a new position in CarMax during the third quarter worth about $31,000. Strengthening Families & Communities LLC raised its holdings in CarMax by 220.0% during the third quarter. Strengthening Families & Communities LLC now owns 880 shares of the company's stock worth $39,000 after purchasing an additional 605 shares in the last quarter. Finally, Smartleaf Asset Management LLC lifted its position in CarMax by 121.1% in the third quarter. Smartleaf Asset Management LLC now owns 984 shares of the company's stock valued at $45,000 after purchasing an additional 539 shares during the period.

CarMax Stock Up 0.9%

Shares of NYSE:KMX opened at $42.51 on Thursday. The company has a quick ratio of 0.51, a current ratio of 1.99 and a debt-to-equity ratio of 2.74. The company has a market capitalization of $6.03 billion, a P/E ratio of 14.03, a P/E/G ratio of 0.99 and a beta of 1.35. CarMax, Inc. has a 52-week low of $30.26 and a 52-week high of $82.79. The stock's fifty day simple moving average is $44.30 and its 200-day simple moving average is $44.85.

CarMax (NYSE:KMX - Get Free Report) last posted its quarterly earnings data on Thursday, December 18th. The company reported $0.43 EPS for the quarter, topping analysts' consensus estimates of $0.31 by $0.12. The firm had revenue of $5.79 billion during the quarter, compared to analysts' expectations of $5.66 billion. CarMax had a return on equity of 7.72% and a net margin of 1.77%.The firm's quarterly revenue was down 6.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.81 EPS. As a group, equities research analysts forecast that CarMax, Inc. will post 3.23 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. JPMorgan Chase & Co. lowered their price objective on CarMax from $30.00 to $28.00 and set an "underweight" rating on the stock in a report on Friday, December 19th. Truist Financial increased their target price on CarMax from $35.00 to $37.00 and gave the stock a "hold" rating in a research note on Thursday, December 18th. Royal Bank Of Canada raised their price target on CarMax from $34.00 to $37.00 and gave the company a "sector perform" rating in a report on Friday, December 19th. Wall Street Zen raised CarMax from a "sell" rating to a "hold" rating in a report on Sunday, February 22nd. Finally, Wedbush cut their price objective on CarMax from $40.00 to $36.00 and set a "neutral" rating for the company in a research report on Friday, December 19th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twelve have issued a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus price target of $39.21.

More CarMax News

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Starboard built about a $350M stake and nominated two board candidates, increasing the likelihood of governance changes that can accelerate strategic fixes and unlock shareholder value. Starboard nominates two to CarMax board, source says
• Positive Sentiment: Starboard is urging a digital revamp and aggressive cost cutting (reports cite potential savings in the hundreds of millions), which could materially improve CarMax’s margins if implemented. Activist Starboard urges CarMax to overhaul digital sales, cut costs
• Neutral Sentiment: CarMax says engagement with Starboard has been “productive,” signaling constructive dialogue rather than an immediate proxy fight — this keeps a negotiated outcome more likely but leaves timelines uncertain. CarMax Issues Statement on Engagement With Starboard Value
• Negative Sentiment: Market reaction was mixed: shares initially rose on the activism news but later pulled back as investors digested execution risk and uncertainty over management’s response. Expect short-term volatility. ‘Our Engagement… Has Been Productive’: CarMax (KMX) Stock Slides on Starboard Push
• Negative Sentiment: Starboard is pressing for quick action from CarMax’s incoming CEO and deeper structural changes; implementation risk, potential management turnover, and disruption to operations could weigh on near-term results. Activist Starboard Pushes for Change at CarMax

About CarMax

CarMax NYSE: KMX is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company's inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax's retail locations or browse the company's online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.

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