Adage Capital Partners GP L.L.C. Boosts Stake in CarMax, Inc. $KMX

Key Points

• Adage Capital Partners GP L.L.C. increased its stake in CarMax, Inc. by 37.1% during the first quarter, owning approximately 0.18% of the company valued at $20.97 million.
• CarMax reported a $1.38 EPS for the last quarter, surpassing analysts' expectations by $0.20, while revenue was slightly below estimates at $7.55 billion.
• Several analysts have reviewed CarMax, with price targets ranging from $58.00 to $84.00, and the stock holds an average rating of "Moderate Buy" with a consensus target price of $81.50.

Adage Capital Partners GP L.L.C. increased its position in CarMax, Inc. (NYSE:KMX - Free Report) by 37.1% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 269,116 shares of the company's stock after buying an additional 72,816 shares during the period. Adage Capital Partners GP L.L.C. owned about 0.18% of CarMax worth $20,970,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. Mirae Asset Global Investments Co. Ltd. boosted its holdings in CarMax by 13.0% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 20,678 shares of the company's stock worth $1,571,000 after buying an additional 2,375 shares during the period. Teacher Retirement System of Texas bought a new position in CarMax in the 1st quarter worth $1,753,000. Sequoia Financial Advisors LLC boosted its holdings in CarMax by 5.5% in the 1st quarter. Sequoia Financial Advisors LLC now owns 3,367 shares of the company's stock worth $262,000 after buying an additional 176 shares during the period. Asset Management One Co. Ltd. boosted its holdings in CarMax by 3.5% in the 1st quarter. Asset Management One Co. Ltd. now owns 60,653 shares of the company's stock worth $4,726,000 after buying an additional 2,078 shares during the period. Finally, GAMMA Investing LLC boosted its holdings in CarMax by 12.6% in the 1st quarter. GAMMA Investing LLC now owns 6,620 shares of the company's stock worth $516,000 after buying an additional 742 shares during the period.

CarMax Price Performance

Shares of NYSE KMX traded down $1.08 during mid-day trading on Wednesday, hitting $60.30. 474,316 shares of the company's stock traded hands, compared to its average volume of 2,901,707. The company's 50-day moving average is $61.00 and its two-hundred day moving average is $66.74. The company has a debt-to-equity ratio of 2.86, a current ratio of 2.39 and a quick ratio of 0.80. The company has a market capitalization of $9.05 billion, a P/E ratio of 16.69, a PEG ratio of 1.00 and a beta of 1.35. CarMax, Inc. has a 1 year low of $54.53 and a 1 year high of $91.25.

CarMax (NYSE:KMX - Get Free Report) last announced its earnings results on Friday, June 20th. The company reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.18 by $0.20. The firm had revenue of $7.55 billion for 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 business's revenue was up 6.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.97 EPS. On average, equities analysts anticipate that CarMax, Inc. will post 3.23 EPS for the current fiscal year.

Insider Activity

In other news, EVP Jon G. Daniels sold 1,540 shares of the company's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $70.64, for a total transaction of $108,785.60. Following the sale, the executive vice president directly owned 2,779 shares in the company, valued at approximately $196,308.56. This represents a 35.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 1.70% of the company's stock.

Analyst Ratings Changes

KMX has been the subject of several recent analyst reports. Needham & Company LLC reaffirmed a "buy" rating and issued a $92.00 target price on shares of CarMax in a report on Monday, June 23rd. Truist Financial increased their price objective on shares of CarMax from $72.00 to $74.00 and gave the company a "hold" rating in a report on Monday, June 23rd. Stephens reissued an "overweight" rating and set a $81.00 price objective on shares of CarMax in a report on Tuesday, August 19th. Mizuho dropped their price objective on shares of CarMax from $80.00 to $78.00 and set a "neutral" rating for the company in a report on Thursday, July 3rd. Finally, JPMorgan Chase & Co. raised shares of CarMax from an "underweight" rating to a "neutral" rating and dropped their price objective for the company from $65.00 to $58.00 in a report on Wednesday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $81.50.

About CarMax

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.