Royal Bank of Canada Has $31.70 Million Holdings in CarMax, Inc. $KMX

Key Points

• Royal Bank of Canada has reduced its stake in CarMax, Inc. by 6.8%, owning approximately 406,854 shares valued at $31.7 million as of the latest filing.
• CarMax reported earnings per share of $1.38 for the last quarter, exceeding expectations, while revenue was $7.55 billion, slightly below analyst estimates of $7.58 billion.
• Several hedge funds, including Quarry LP and Canada Pension Plan Investment Board, increased their positions in CarMax during the same quarter, highlighting a mixed sentiment among institutional investors.

Royal Bank of Canada lowered its position in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 6.8% in the first quarter, according to its most recent 13F filing with the SEC. The firm owned 406,854 shares of the company's stock after selling 29,828 shares during the quarter. Royal Bank of Canada owned about 0.27% of CarMax worth $31,701,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. Zions Bancorporation National Association UT acquired a new stake in shares of CarMax in the first quarter valued at about $27,000. Accent Capital Management LLC acquired a new position in shares of CarMax during the first quarter worth $34,000. Strengthening Families & Communities LLC boosted its stake 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 purchasing an additional 256 shares during the period. Ameriflex Group Inc. acquired a new stake in shares of CarMax during the fourth quarter valued at about $53,000. Finally, Quarry LP lifted its stake in shares of CarMax by 50.5% in the first quarter. Quarry LP now owns 694 shares of the company's stock worth $54,000 after acquiring an additional 233 shares in the last quarter.

CarMax Price Performance

Shares of NYSE:KMX traded up $0.04 during trading on Tuesday, reaching $61.42. The company had a trading volume of 2,237,942 shares, compared to its average volume of 2,476,621. The firm's fifty day moving average is $61.00 and its 200 day moving average is $66.74. The company has a debt-to-equity ratio of 2.86, a quick ratio of 0.80 and a current ratio of 2.39. The firm has a market capitalization of $9.22 billion, a PE ratio of 16.97, a price-to-earnings-growth ratio of 1.00 and a beta of 1.35. CarMax, Inc. has a twelve month low of $54.53 and a twelve month high of $91.25.

CarMax (NYSE:KMX - Get Free Report) last issued its earnings results on Friday, June 20th. The company reported $1.38 earnings per share for the quarter, topping analysts' consensus estimates of $1.18 by $0.20. The firm had revenue of $7.55 billion during the quarter, compared to analysts' expectations of $7.58 billion. CarMax had a net margin of 2.09% and a return on equity of 9.11%. The firm's revenue for the quarter was up 6.1% compared to the same quarter last year. During the same period last year, the firm posted $0.97 earnings per share. On average, equities analysts forecast that CarMax, Inc. will post 3.23 EPS for the current year.

Insiders Place Their Bets

In related news, EVP Jon G. Daniels sold 1,540 shares of the firm's stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $70.64, for a total transaction of $108,785.60. Following the completion of the sale, the executive vice president directly owned 2,779 shares in the company, valued at approximately $196,308.56. This trade represents a 35.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 1.70% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on KMX shares. Stephens reaffirmed an "overweight" rating and issued a $81.00 price target on shares of CarMax in a report on Tuesday, August 19th. Benchmark began coverage on CarMax in a research note on Thursday, July 17th. They issued a "buy" rating and a $75.00 price target for the company. Morgan Stanley initiated coverage on CarMax in a research note on Tuesday, July 1st. They set an "overweight" rating and a $80.00 price objective on the stock. Royal Bank Of Canada boosted their price target on CarMax from $80.00 to $81.00 and gave the company an "outperform" rating in a report on Monday, June 23rd. Finally, Mizuho lowered their target price on shares of CarMax from $80.00 to $78.00 and set a "neutral" rating for the company in a research note on Thursday, July 3rd. 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 issued a Sell rating to the company's stock. According to MarketBeat.com, CarMax currently has a consensus rating of "Moderate Buy" and an average price target of $81.50.

CarMax Company 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.