Bank of America Corp DE Invests $55.27 Million in CarMax, Inc. $KMX

Key Points

• Bank of America acquired 1.045 million CarMax shares worth approximately $55.27 million, giving it a 0.74% stake in the company. Several other institutional investors also initiated or increased positions during the second quarter.
• Analyst sentiment remains cautious: CarMax has an average “Reduce” rating and a consensus price target of $51.67, despite Stephens upgrading the stock to “overweight” with a $66 target.
• CarMax shares opened at $57.20, near the upper half of their 52-week range of $30.26 to $65.28. Director Sona Chawla also purchased 2,000 shares, while Zacks reduced longer-term earnings forecasts and maintained a “Hold” rating.

Bank of America Corp DE acquired a new position in shares of CarMax, Inc. (NYSE:KMX - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 1,045,011 shares of the company's stock, valued at approximately $55,271,000. Bank of America Corp DE owned 0.74% of CarMax as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in KMX. Man Group plc bought a new position in CarMax during the second quarter worth about $9,649,000. Biglari Sardar acquired a new stake in shares of CarMax in the 2nd quarter valued at approximately $2,173,779. Biglari Capital CORP. bought a new position in CarMax during the 2nd quarter worth approximately $6,633,464. Jupiter Topco LLC bought a new position in CarMax during the 2nd quarter worth approximately $245,676,000. Finally, J. Goldman & Co LP acquired a new position in CarMax during the second quarter valued at approximately $6,119,000.

Analyst Ratings Changes

Several equities research analysts have commented on KMX shares. Truist Financial upped their target price on shares of CarMax from $47.00 to $50.00 and gave the company a "hold" rating in a research note on Thursday, June 18th. Zacks Research cut shares of CarMax from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 16th. Royal Bank Of Canada boosted their price target 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. Weiss Ratings upgraded shares of CarMax from a "sell (d)" rating to a "sell (d+)" rating in a research report on Monday, July 20th. Finally, Stephens raised CarMax from an "equal weight" rating to an "overweight" rating and set a $66.00 price objective on the stock in a research note on Thursday, June 18th. Two research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and an average price target of $51.67.

Insider Buying and Selling at CarMax

In other news, Director Sona Chawla acquired 2,000 shares of the firm's stock in a transaction that occurred on Thursday, June 25th. The stock was acquired at an average cost of $53.39 per share, for a total transaction of $106,780.00. Following the completion of the acquisition, the director owned 21,702 shares in the company, valued at $1,158,669.78. This represents a 10.15% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 1.01% of the stock is owned by corporate insiders.

CarMax News Summary

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: JPMorgan Chase reportedly expects strong appreciation for CarMax (KMX) shares, providing a positive counterpoint to the broader analyst caution. The optimism may reflect potential recovery in used-vehicle demand and earnings growth. JPMorgan Chase & Co. Forecasts Strong Price Appreciation for CarMax Stock
• Neutral Sentiment: A financial comparison of CarMax (KMX) and Warby Parker (WRBY) offers relative valuation and financial metrics but does not appear to represent a new operational development or change to CarMax’s outlook. CarMax vs. Warby Parker Financial Comparison
• Neutral Sentiment: Analysts have issued forecasts for CarMax’s fiscal second-quarter earnings. The estimates will be an important near-term catalyst, particularly because investors are assessing whether the company can sustain its recent earnings momentum after its latest quarterly results beat expectations. Analysts Issue Forecasts for CarMax’s Q2 Earnings
• Negative Sentiment: Zacks Research lowered its earnings forecasts across multiple future periods. Its fiscal 2028 EPS estimate fell to $2.71 from $3.11, while its fiscal 2029 estimate declined to $2.91 from $3.90. Quarterly estimates were also reduced, including Q1 2028 to $0.95 from $1.01, Q2 2028 to $0.83 from $0.97, Q3 2028 to $0.68 from $0.84, and Q4 2028 to $0.25 from $0.30. The firm maintained a Hold rating. These cuts suggest weaker expected profitability and are likely the main source of selling pressure.

CarMax Stock Performance

Shares of KMX stock opened at $57.20 on Monday. The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.82 and a current ratio of 2.70. The company has a market capitalization of $8.12 billion, a P/E ratio of 37.39, a price-to-earnings-growth ratio of 2.64 and a beta of 1.17. The company's 50 day moving average price is $59.50 and its two-hundred day moving average price is $49.45. CarMax, Inc. has a 52 week low of $30.26 and a 52 week high of $65.28.

CarMax Company Profile

CarMax, Inc is a specialty retailer of used vehicles and one of the largest automotive retailers in the United States. The company sells a broad selection of used cars, trucks and sport utility vehicles through its retail locations and online platform. CarMax also purchases vehicles from consumers and other sources, providing customers with a streamlined alternative to traditional private-party sales.

In addition to retail sales, CarMax operates wholesale vehicle auctions for vehicles that do not meet its retail standards or business requirements.

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