AXQ Capital LP Sells 20,428 Shares of CarMax, Inc. $KMX

Key Points

• AXQ Capital LP reduced its CarMax stake by 47.9% in the second quarter, selling 20,428 shares and retaining 22,222 shares valued at approximately $1.18 million.
• Several institutions increased or initiated positions in CarMax, while company insiders bought 13,900 shares worth $735,574 during the last quarter.
• Analysts maintain a consensus “Hold” rating with a $51 price target, despite CarMax exceeding quarterly earnings and revenue estimates; shares recently opened at $63.24.

AXQ Capital LP cut its position in CarMax, Inc. (NYSE:KMX - Free Report) by 47.9% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 22,222 shares of the company's stock after selling 20,428 shares during the period. AXQ Capital LP's holdings in CarMax were worth $1,175,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Bessemer Group Inc. grew its position in CarMax by 28.1% in the 1st quarter. Bessemer Group Inc. now owns 156,121 shares of the company's stock valued at $6,491,000 after purchasing an additional 34,211 shares during the period. Bank of America Corp DE raised its holdings in CarMax by 61.7% during the first 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 during the last quarter. Broad Run Investment Management LLC acquired a new position in CarMax during the second quarter worth $14,980,000. Convergence Investment Partners LLC acquired a new position in CarMax during the first quarter worth $1,688,000. Finally, Midway Capital Research & Management bought a new position in shares of CarMax in the fourth quarter valued at $1,625,000.

Insider Buying and Selling at CarMax

In other CarMax news, Director Peter Bensen bought 2,500 shares of the firm's stock in a transaction dated Monday, June 22nd. The stock was purchased at an average cost of $52.20 per share, with a total value of $130,500.00. Following the transaction, the director directly owned 24,796 shares in the company, valued at $1,294,351.20. This trade represents a 11.21% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Sona Chawla bought 2,000 shares of the stock in a transaction dated 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 purchase, the director directly owned 21,702 shares in the company, valued at approximately $1,158,669.78. This trade represents a 10.15% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired 13,900 shares of company stock worth $735,574 in the last quarter. 1.01% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

KMX has been the subject of a number of analyst reports. Weiss Ratings upgraded shares of CarMax from a "sell (d)" rating to a "sell (d+)" rating in a report on Monday, July 20th. Wall Street Zen upgraded shares of CarMax from a "sell" rating to a "hold" rating in a report on Saturday, June 13th. Truist Financial raised their price target on shares of CarMax from $47.00 to $50.00 and gave the company a "hold" rating in a research report on Thursday, June 18th. Barclays upgraded CarMax from an "underweight" rating to an "equal weight" rating and lifted their price target for the company from $37.00 to $61.00 in a research note on Tuesday, July 21st. Finally, Benchmark reissued a "hold" rating on shares of CarMax in a report on Thursday, June 18th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, fourteen have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $51.00.

CarMax Price Performance

Shares of NYSE KMX opened at $63.24 on Friday. CarMax, Inc. has a twelve month low of $30.26 and a twelve month high of $65.28. The stock's 50 day moving average price is $57.78 and its 200-day moving average price is $48.21. The company has a market capitalization of $8.97 billion, a PE ratio of 41.33, a PEG ratio of 2.90 and a beta of 1.17. The company has a quick ratio of 0.82, a current ratio of 2.70 and a debt-to-equity ratio of 2.87.

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