Armistice Capital LLC Invests $1.17 Million in CarMax, Inc. $KMX

Key Points

• Armistice Capital LLC has purchased a new position in CarMax, Inc. (NYSE: KMX) by acquiring 14,980 shares valued at approximately $1,167,000.
• CarMax reported $1.38 earnings per share (EPS) in its latest quarterly earnings, exceeding analysts' expectations of $1.18, although revenue fell slightly short of estimates at $7.55 billion.
• Several institutional investors have recently adjusted their stakes in CarMax, indicating a growing interest in the company amidst its varying performance metrics, including a current market cap of $9.20 billion.

Armistice Capital LLC purchased a new stake in shares of CarMax, Inc. (NYSE:KMX - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 14,980 shares of the company's stock, valued at approximately $1,167,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. 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 buying an additional 152 shares during the last quarter. Maia Wealth LLC increased its position in CarMax by 0.6% during the 1st quarter. Maia Wealth LLC now owns 26,099 shares of the company's stock valued at $2,034,000 after purchasing an additional 157 shares during the period. Sequoia Financial Advisors LLC increased its position in CarMax by 5.5% during the 1st quarter. Sequoia Financial Advisors LLC now owns 3,367 shares of the company's stock valued at $262,000 after purchasing an additional 176 shares during the period. Nicolet Advisory Services LLC increased its position in CarMax by 6.3% during the 1st quarter. Nicolet Advisory Services LLC now owns 3,576 shares of the company's stock valued at $279,000 after purchasing an additional 212 shares during the period. Finally, Quarry LP increased its position in CarMax by 50.5% during the 1st quarter. Quarry LP now owns 694 shares of the company's stock valued at $54,000 after purchasing an additional 233 shares during the period.

CarMax Stock Up 0.8%

KMX stock traded up $0.46 during trading on Wednesday, hitting $60.15. 5,082,838 shares of the stock traded hands, compared to its average volume of 2,409,117. CarMax, Inc. has a 1 year low of $54.53 and a 1 year high of $91.25. The firm's 50 day moving average is $61.53 and its two-hundred day moving average is $67.59. The stock has a market cap of $9.03 billion, a price-to-earnings ratio of 16.61, a price-to-earnings-growth ratio of 1.00 and a beta of 1.35. The company has a debt-to-equity ratio of 2.86, a current ratio of 2.39 and a quick ratio of 0.80.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings data on Friday, June 20th. The company reported $1.38 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 company had revenue of $7.55 billion for the quarter, compared to the consensus estimate of $7.58 billion. During the same period in the prior year, the firm posted $0.97 EPS. CarMax's revenue for the quarter was up 6.1% on a year-over-year basis. On average, sell-side analysts anticipate that CarMax, Inc. will post 3.23 EPS for the current year.

Wall Street Analyst Weigh In

KMX has been the topic of a number of research analyst reports. Stephens reissued an "overweight" rating and set a $81.00 price objective on shares of CarMax in a research report on Tuesday, August 19th. Benchmark initiated coverage on shares of CarMax in a research report on Thursday, July 17th. They set a "buy" rating and a $75.00 price objective on the stock. Wedbush reissued an "outperform" rating and set a $84.00 price objective on shares of CarMax in a research report on Tuesday, August 19th. Needham & Company LLC reissued a "buy" rating and set a $92.00 price objective on shares of CarMax in a research report on Monday, June 23rd. Finally, Morgan Stanley assumed coverage on shares of CarMax in a research report on Tuesday, July 1st. They set an "overweight" rating and a $80.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target 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 transaction, the executive vice president owned 2,779 shares in the company, valued at approximately $196,308.56. This represents a 35.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.70% of the company's stock.

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.