Bayforest Capital Ltd Invests $677,000 in CarMax, Inc. $KMX

Key Points

• Bayforest Capital Ltd has made a new investment in CarMax, Inc., purchasing 10,080 shares valued at approximately $677,000 during the 2nd quarter.
• CarMax recently reported earnings per share (EPS) of $0.64, missing analysts' expectations, and its quarterly revenue declined by 6.0% year-over-year.
• Equities analysts have issued varied ratings on CarMax, with some lowering their price targets significantly, leading to a consensus rating of "Hold" with a target price of $54.42.

Bayforest Capital Ltd bought a new stake in shares of CarMax, Inc. (NYSE:KMX - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 10,080 shares of the company's stock, valued at approximately $677,000.

Several other institutional investors and hedge funds also recently bought and sold shares of KMX. Zions Bancorporation National Association UT purchased a new position in CarMax during the first quarter valued at $27,000. Accent Capital Management LLC purchased a new position in CarMax during the first quarter valued at $34,000. Strengthening Families & Communities LLC lifted its position in shares of CarMax by 93.1% in the first quarter. Strengthening Families & Communities LLC now owns 531 shares of the company's stock valued at $39,000 after acquiring an additional 256 shares in the last quarter. Quarry LP lifted its position in shares of CarMax by 50.5% in the first quarter. Quarry LP now owns 694 shares of the company's stock valued at $54,000 after acquiring an additional 233 shares in the last quarter. Finally, Blue Trust Inc. lifted its position in shares of CarMax by 49.2% in the first quarter. Blue Trust Inc. now owns 898 shares of the company's stock valued at $70,000 after acquiring an additional 296 shares in the last quarter.

CarMax Trading Up 1.1%

KMX opened at $43.65 on Tuesday. The stock has a market cap of $6.41 billion, a price-to-earnings ratio of 12.80, a P/E/G ratio of 0.82 and a beta of 1.27. The stock's 50 day moving average price is $55.43 and its 200-day moving average price is $62.58. CarMax, Inc. has a one year low of $42.75 and a one year high of $91.25. The company has a debt-to-equity ratio of 2.87, a quick ratio of 1.06 and a current ratio of 2.46.

CarMax (NYSE:KMX - Get Free Report) last released its earnings results on Thursday, September 25th. The company reported $0.64 EPS for the quarter, missing analysts' consensus estimates of $1.03 by ($0.39). CarMax had a net margin of 1.98% and a return on equity of 8.51%. The business had revenue of $6.59 billion for the quarter, compared to the consensus estimate of $7.07 billion. During the same period in the prior year, the company posted $0.85 EPS. The company's quarterly revenue was down 6.0% compared to the same quarter last year. On average, equities analysts forecast that CarMax, Inc. will post 3.23 EPS for the current year.

Analysts Set New Price Targets

Several equities analysts have recently commented on KMX shares. Morgan Stanley lowered their price objective on CarMax from $80.00 to $56.00 and set an "overweight" rating on the stock in a research report on Wednesday, October 1st. Zacks Research downgraded CarMax from a "hold" rating to a "strong sell" rating in a research report on Thursday, October 2nd. Needham & Company LLC decreased their target price on CarMax from $92.00 to $60.00 and set a "buy" rating on the stock in a research report on Friday, September 26th. Benchmark decreased their target price on CarMax from $75.00 to $60.00 and set a "buy" rating on the stock in a research report on Tuesday, October 7th. Finally, Wall Street Zen downgraded CarMax from a "hold" rating to a "sell" rating in a research report on Friday, October 3rd. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, eight have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $54.42.

CarMax Profile

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.

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