Ameriprise Financial Inc. Reduces Stock Position in CarMax, Inc. $KMX

Key Points

• Ameriprise Financial Inc. reduced its stake in CarMax, Inc. by 4.9%, selling 29,891 shares during the 1st quarter, and now holds approximately 0.38% of the company valued at $45.1 million.
• CarMax reported $1.38 earnings per share for the last quarter, exceeding analysts' expectations of $1.18, and experienced a year-over-year revenue increase of 6.1%.
• Analysts have mixed ratings on CarMax, with a consensus rating of "Moderate Buy" and a target price of $81.50, reflecting shifting investor sentiment around the stock.

Ameriprise Financial Inc. decreased its holdings in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 4.9% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 578,794 shares of the company's stock after selling 29,891 shares during the quarter. Ameriprise Financial Inc. owned about 0.38% of CarMax worth $45,100,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Redmond Asset Management LLC raised its holdings in CarMax by 0.3% during the 1st quarter. Redmond Asset Management LLC now owns 50,803 shares of the company's stock valued at $3,959,000 after acquiring an additional 152 shares during the period. Maia Wealth LLC increased its holdings in shares of CarMax by 0.6% in the first quarter. Maia Wealth LLC now owns 26,099 shares of the company's stock worth $2,034,000 after purchasing an additional 157 shares during the period. Sequoia Financial Advisors LLC increased its holdings in shares of CarMax by 5.5% in the first quarter. Sequoia Financial Advisors LLC now owns 3,367 shares of the company's stock worth $262,000 after purchasing an additional 176 shares during the period. Nicolet Advisory Services LLC increased its holdings in shares of CarMax by 6.3% in the first quarter. Nicolet Advisory Services LLC now owns 3,576 shares of the company's stock worth $279,000 after purchasing an additional 212 shares during the period. Finally, Tokio Marine Asset Management Co. Ltd. increased its holdings in shares of CarMax by 3.8% in the first quarter. Tokio Marine Asset Management Co. Ltd. now owns 6,590 shares of the company's stock worth $513,000 after purchasing an additional 243 shares during the period.

CarMax Price Performance

KMX traded down $1.57 during trading on Tuesday, reaching $59.79. The stock had a trading volume of 950,411 shares, compared to its average volume of 2,904,469. The stock has a market cap of $8.97 billion, a PE ratio of 16.52, a PEG ratio of 1.00 and a beta of 1.35. The company has a debt-to-equity ratio of 2.86, a quick ratio of 0.80 and a current ratio of 2.39. CarMax, Inc. has a one year low of $54.53 and a one year high of $91.25. The business has a 50-day moving average of $61.87 and a 200-day moving average of $67.70.

CarMax (NYSE:KMX - Get Free Report) last posted 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. CarMax had a net margin of 2.09% and a return on equity of 9.11%. The business had revenue of $7.55 billion during the quarter, compared to analyst estimates of $7.58 billion. During the same period in the prior year, the business posted $0.97 earnings per share. The company's revenue was up 6.1% on a year-over-year basis. As a group, equities research analysts anticipate that CarMax, Inc. will post 3.23 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on KMX shares. Needham & Company LLC reaffirmed a "buy" rating and issued a $92.00 price target on shares of CarMax in a report on Monday, June 23rd. Mizuho decreased their price target 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. Morgan Stanley started coverage on shares of CarMax in a report on Tuesday, July 1st. They issued an "overweight" rating and a $80.00 price target on the stock. Wall Street Zen raised shares of CarMax from a "sell" rating to a "hold" rating in a report on Wednesday, May 7th. Finally, Truist Financial increased their target price on CarMax from $72.00 to $74.00 and gave the company a "hold" rating in a research note on Monday, June 23rd. One 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 given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $81.50.

Insider Transactions at CarMax

In other CarMax news, EVP Jon G. Daniels sold 1,540 shares of the company's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $70.64, for a total transaction of $108,785.60. Following the completion of the sale, the executive vice president directly owned 2,779 shares in the company, valued at $196,308.56. This represents a 35.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 1.70% of the stock is currently owned by insiders.

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.