Azora Capital LP Lowers Holdings in CarMax, Inc. $KMX

Key Points

• Azora Capital LP cut its stake in CarMax by 46.5% in Q3, selling 316,772 shares and retaining 364,571 shares worth about $16.36 million (≈0.25% of the company).
• Analyst sentiment has turned negative—several firms (including Stephens and Mizuho) cut price targets to about $36, and the stock's average rating on MarketBeat is "Reduce" with an average target of $39.21.
• CarMax beat Q3 EPS estimates ($0.43 vs. $0.31) but revenue fell 6.9% year‑over‑year to $5.79 billion; the shares trade at a PE of 13.8 with a market cap of $5.94 billion and a 52‑week range of $30.26–$82.79.

Azora Capital LP reduced its stake in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 46.5% during the 3rd quarter, according to its most recent filing with the SEC. The firm owned 364,571 shares of the company's stock after selling 316,772 shares during the period. Azora Capital LP owned approximately 0.25% of CarMax worth $16,358,000 at the end of the most recent quarter.

A number of other institutional investors have also modified their holdings of the stock. Silver Heights Capital Management Inc grew its holdings in CarMax by 39.5% during the third quarter. Silver Heights Capital Management Inc now owns 926,167 shares of the company's stock worth $41,557,000 after acquiring an additional 262,478 shares during the period. Intech Investment Management LLC lifted its holdings in CarMax by 129.4% in the third quarter. Intech Investment Management LLC now owns 86,444 shares of the company's stock valued at $3,879,000 after acquiring an additional 48,757 shares during the period. True North Advisors LLC lifted its holdings in CarMax by 66.6% in the third quarter. True North Advisors LLC now owns 123,742 shares of the company's stock valued at $5,552,000 after acquiring an additional 49,450 shares during the period. AXQ Capital LP purchased a new stake in CarMax in the 2nd quarter worth approximately $859,000. Finally, Candriam S.C.A. boosted its position in CarMax by 172.5% in the 2nd quarter. Candriam S.C.A. now owns 24,506 shares of the company's stock worth $1,647,000 after purchasing an additional 15,513 shares in the last quarter.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Stephens cut their target price on shares of CarMax from $39.00 to $36.00 and set an "equal weight" rating for the company in a report on Friday, December 19th. Benchmark reissued a "hold" rating on shares of CarMax in a report on Tuesday, December 16th. Zacks Research upgraded shares of CarMax from a "strong sell" rating to a "hold" rating in a research report on Monday, January 5th. Wall Street Zen cut shares of CarMax from a "hold" rating to a "sell" rating in a report on Saturday. Finally, Mizuho decreased their price objective on shares of CarMax from $46.00 to $36.00 and set a "neutral" rating for the company in a research report on Friday, December 19th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have given a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and an average target price of $39.21.

CarMax Stock Performance

NYSE:KMX opened at $41.86 on Friday. The company has a debt-to-equity ratio of 2.74, a quick ratio of 0.51 and a current ratio of 1.99. The stock has a market capitalization of $5.94 billion, a PE ratio of 13.82, a P/E/G ratio of 1.00 and a beta of 1.35. CarMax, Inc. has a fifty-two week low of $30.26 and a fifty-two week high of $82.79. The company has a fifty day moving average of $44.39 and a two-hundred day moving average of $44.59.

CarMax (NYSE:KMX - Get Free Report) last announced its earnings results on Thursday, December 18th. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.31 by $0.12. The business had revenue of $5.79 billion for the quarter, compared to analyst estimates of $5.66 billion. CarMax had a net margin of 1.77% and a return on equity of 7.72%. The company's revenue for the quarter was down 6.9% compared to the same quarter last year. During the same quarter last year, the business earned $0.81 earnings per share. As a group, research analysts forecast that CarMax, Inc. will post 3.23 earnings per share 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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