Alyeska Investment Group L.P. Makes New Investment in CarMax, Inc. $KMX

Key Points

• Alyeska Investment Group initiated a CarMax position of 957,980 shares worth approximately $50.7 million, representing about 0.68% of the company. Several other institutional investors also increased or initiated holdings.
• CarMax exceeded quarterly expectations, reporting $1.31 EPS versus the $0.96 consensus and revenue of $8.01 billion versus $7.42 billion expected. Revenue rose 6.2% year over year, though net margin remained low at 0.84%.
• Shares opened at $61.96, near their 12-month high of $65.28, while analysts maintained a consensus “Hold” rating with an average price target of $51.00. Company insiders also purchased 13,900 shares worth approximately $735,574 over the past 90 days.

Alyeska Investment Group L.P. acquired a new stake in CarMax, Inc. (NYSE:KMX - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 957,980 shares of the company's stock, valued at approximately $50,668,000. Alyeska Investment Group L.P. owned approximately 0.68% of CarMax as of its most recent SEC filing.

Other hedge funds have also recently bought and sold shares of the company. Bessemer Group Inc. increased its position in CarMax by 28.1% during the 1st quarter. Bessemer Group Inc. now owns 156,121 shares of the company's stock worth $6,491,000 after purchasing an additional 34,211 shares in the last quarter. Bank of America Corp DE lifted its holdings in CarMax by 61.7% in the 1st quarter. Bank of America Corp DE now owns 1,687,359 shares of the company's stock worth $70,160,000 after buying an additional 643,834 shares in the last quarter. Broad Run Investment Management LLC purchased a new position in CarMax in the second quarter valued at about $14,980,000. Convergence Investment Partners LLC acquired a new stake in shares of CarMax during the first quarter worth approximately $1,688,000. Finally, BML Capital Management LLC acquired a new position in CarMax during the 4th quarter worth $5,989,000.

CarMax Price Performance

NYSE KMX opened at $61.96 on Monday. The stock has a 50-day simple moving average of $56.79 and a 200 day simple moving average of $47.59. The stock has a market capitalization of $8.79 billion, a PE ratio of 40.50, a P/E/G ratio of 2.84 and a beta of 1.15. The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.82 and a current ratio of 2.70. CarMax, Inc. has a twelve month low of $30.26 and a twelve month high of $65.28.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.96 by $0.35. The firm had revenue of $8.01 billion for the quarter, compared to analyst estimates of $7.42 billion. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The company's quarterly revenue was up 6.2% compared to the same quarter last year. During the same period in the previous year, the company posted $1.38 earnings per share. Research analysts anticipate that CarMax, Inc. will post 2.73 EPS for the current year.

Insider Activity

In other CarMax news, CEO Keith Barr bought 9,400 shares of CarMax stock in a transaction dated Monday, June 22nd. The shares were acquired at an average cost of $53.01 per share, with a total value of $498,294.00. Following the acquisition, the chief executive officer directly owned 33,375 shares of the company's stock, valued at $1,769,208.75. The trade was a 39.21% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Sona Chawla purchased 2,000 shares of the firm's stock in a transaction that occurred on Thursday, June 25th. The shares were acquired at an average price of $53.39 per share, for a total transaction of $106,780.00. Following the completion of the transaction, the director owned 21,702 shares in the company, valued at $1,158,669.78. The trade was a 10.15% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders bought 13,900 shares of company stock worth $735,574. Insiders own 1.01% of the company's stock.

Analyst Upgrades and Downgrades

KMX has been the topic of several recent research reports. Bank of America raised their price target on CarMax from $40.00 to $45.00 and gave the stock an "underperform" rating in a report on Wednesday, June 17th. Zacks Research upgraded shares of CarMax from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 11th. Robert W. Baird boosted their price target on shares of CarMax from $48.00 to $55.00 and gave the stock an "outperform" rating in a research report on Thursday, June 18th. Barclays raised CarMax from an "underweight" rating to an "equal weight" rating and upped their price target for the company from $37.00 to $61.00 in a report on Tuesday, July 21st. Finally, UBS Group set a $60.00 price objective on shares of CarMax in a research note on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, fourteen have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $51.00.

CarMax Company Profile

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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