Amundi Trims Holdings in CarMax, Inc. $KMX

Key Points

• Amundi cut its CarMax stake by 37.5% in the first quarter, selling 17,975 shares and retaining 29,941 shares valued at approximately $1.25 million. Several other institutional investors, including AQR Capital and SRS Investment Management, significantly increased their positions.
• CarMax insiders showed confidence by purchasing 13,900 shares worth about $735,574 over the past 90 days, including sizable buys by CEO Keith Barr and Director Peter Bensen.
• Analyst sentiment remains cautious: most firms rate CarMax “Hold” or equivalent, with a consensus target price of $51 versus a recent share price of $58.15. The company nevertheless beat quarterly earnings and revenue expectations, reporting $1.31 EPS and $8.01 billion in revenue.

Amundi decreased its position in CarMax, Inc. (NYSE:KMX - Free Report) by 37.5% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 29,941 shares of the company's stock after selling 17,975 shares during the quarter. Amundi's holdings in CarMax were worth $1,245,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently bought and sold shares of the business. AQR Capital Management LLC grew its stake in CarMax by 151.8% during the 4th quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company's stock worth $306,429,000 after purchasing an additional 4,780,903 shares in the last quarter. SRS Investment Management LLC raised its position in CarMax by 1,717.5% in the 4th quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company's stock valued at $217,845,000 after purchasing an additional 5,327,603 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of CarMax by 7.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,275,663 shares of the company's stock valued at $177,767,000 after buying an additional 289,768 shares during the period. Norges Bank acquired a new position in shares of CarMax during the fourth quarter worth about $159,232,000. Finally, Arrowstreet Capital Limited Partnership grew its position in shares of CarMax by 73.7% during the third quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company's stock worth $158,074,000 after buying an additional 1,494,205 shares in the last quarter.

Insider Transactions at CarMax

In other CarMax news, CEO Keith Barr bought 9,400 shares of the stock in a transaction dated Monday, June 22nd. The shares were acquired at an average cost of $53.01 per share, for a total transaction of $498,294.00. Following the completion of the transaction, the chief executive officer owned 33,375 shares in the company, valued at approximately $1,769,208.75. The trade was a 39.21% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Peter J. Bensen bought 2,500 shares of the business's stock in a transaction dated Monday, June 22nd. The stock was acquired at an average cost of $52.20 per share, for a total transaction of $130,500.00. Following the completion of the acquisition, the director directly owned 24,796 shares in the company, valued at approximately $1,294,351.20. This trade represents a 11.21% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders have bought 13,900 shares of company stock worth $735,574. Corporate insiders own 1.01% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on KMX. Morgan Stanley raised their target price on shares of CarMax from $35.00 to $44.00 and gave the company an "equal weight" rating in a report on Tuesday, June 23rd. Royal Bank Of Canada raised their price objective on shares of CarMax from $41.00 to $45.00 and gave the company a "sector perform" rating in a report on Thursday, June 18th. JPMorgan Chase & Co. upgraded shares of CarMax from an "underweight" rating to a "neutral" rating and boosted their target price for the stock from $38.00 to $60.00 in a research note on Wednesday, July 29th. Benchmark reissued a "hold" rating on shares of CarMax in a report on Thursday, June 18th. Finally, Barclays raised CarMax from an "underweight" rating to an "equal weight" rating and increased their target price for the company from $37.00 to $61.00 in a report on Tuesday, July 21st. Two equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and a consensus target price of $51.00.

CarMax Stock Performance

Shares of CarMax stock opened at $58.15 on Friday. The firm has a market capitalization of $8.25 billion, a P/E ratio of 38.01, a P/E/G ratio of 2.66 and a beta of 1.15. CarMax, Inc. has a 52 week low of $30.26 and a 52 week high of $62.56. The company has a quick ratio of 0.82, a current ratio of 2.70 and a debt-to-equity ratio of 2.87. The firm's 50 day moving average is $53.29 and its two-hundred day moving average is $46.10.

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

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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