Akre Capital Management LLC Sells 462,162 Shares of CarMax, Inc. $KMX

Key Points

• Akre Capital Management LLC has significantly reduced its stake in CarMax, Inc. by 69.2%, retaining approximately 205,275 shares, making it the 14th largest holding in its portfolio.
• In addition to Akre, several other hedge funds have engaged in trading activities related to CarMax, with Rockefeller Capital Management L.P. and Gabelli Funds LLC expressing interest through new and increased positions.
• CarMax reported a quarterly earnings per share (EPS) of $1.38, surpassing analysts' expectations, while its revenue increased by 6.1% over the previous year, reaching $7.55 billion.

Akre Capital Management LLC trimmed its stake in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 69.2% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 205,275 shares of the company's stock after selling 462,162 shares during the period. CarMax makes up about 0.2% of Akre Capital Management LLC's investment portfolio, making the stock its 14th biggest position. Akre Capital Management LLC owned approximately 0.13% of CarMax worth $15,995,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors also recently modified their holdings of the company. Rockefeller Capital Management L.P. bought a new stake in shares of CarMax during the fourth quarter worth approximately $829,000. Gabelli Funds LLC increased its stake in CarMax by 4.9% in the fourth quarter. Gabelli Funds LLC now owns 64,000 shares of the company's stock valued at $5,233,000 after purchasing an additional 3,000 shares in the last quarter. NewEdge Advisors LLC increased its stake in CarMax by 3.0% in the fourth quarter. NewEdge Advisors LLC now owns 35,857 shares of the company's stock valued at $2,932,000 after purchasing an additional 1,032 shares in the last quarter. Marshall Wace LLP increased its position in shares of CarMax by 8.9% during the fourth quarter. Marshall Wace LLP now owns 689,494 shares of the company's stock worth $56,373,000 after acquiring an additional 56,126 shares in the last quarter. Finally, Farringdon Capital Ltd. bought a new stake in shares of CarMax during the fourth quarter worth $379,000.

Insider Activity

In related news, EVP Jon G. Daniels sold 1,540 shares of CarMax stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $70.64, for a total transaction of $108,785.60. Following the sale, the executive vice president directly owned 2,779 shares of the company's stock, valued at approximately $196,308.56. The trade was a 35.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 1.70% of the company's stock.

CarMax Price Performance

Shares of CarMax stock traded up $0.9380 during midday trading on Tuesday, hitting $59.3880. 2,446,441 shares of the company traded hands, compared to its average volume of 2,920,195. The stock has a market cap of $8.91 billion, a price-to-earnings ratio of 16.41, a PEG ratio of 0.95 and a beta of 1.36. The company has a debt-to-equity ratio of 2.86, a quick ratio of 0.80 and a current ratio of 2.39. The firm's fifty day moving average price is $63.08 and its 200-day moving average price is $69.50. CarMax, Inc. has a 12 month low of $54.53 and a 12 month high of $91.25.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings results on Friday, June 20th. The company reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.18 by $0.20. The company had revenue of $7.55 billion for the quarter, compared to analyst estimates of $7.58 billion. CarMax had a net margin of 2.09% and a return on equity of 9.11%. The firm's revenue was up 6.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.97 EPS. As a group, sell-side analysts forecast that CarMax, Inc. will post 3.23 earnings per share for the current year.

Analysts Set New Price Targets

Several research analysts recently commented on the stock. Benchmark assumed coverage on shares of CarMax in a report on Thursday, July 17th. They set a "buy" rating and a $75.00 target price for the company. Stephens restated an "overweight" rating and set a $81.00 target price on shares of CarMax in a research note on Tuesday. Wall Street Zen upgraded shares of CarMax from a "sell" rating to a "hold" rating in a research note on Wednesday, May 7th. JPMorgan Chase & Co. raised shares of CarMax from an "underweight" rating to a "neutral" rating and decreased their target price for the company from $65.00 to $58.00 in a report on Wednesday, August 6th. Finally, Mizuho decreased their target price on shares of CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a report on Thursday, July 3rd. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, CarMax has an average rating of "Moderate Buy" and a consensus target price of $81.50.

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.