CarMax, Inc. $KMX Shares Acquired by Mount Capital Ltd

Key Points

• Mount Capital Ltd increased its stake in CarMax by 86.9% during Q3 to 820,800 shares (about $36.8M), making KMX the fund's second-largest holding at roughly 13.2% of its portfolio.
• CarMax beat the quarter's estimates (EPS $0.43 vs $0.31; revenue $5.79B vs $5.66B) despite a 6.9% year-over-year revenue decline, and analyst opinion is mixed with a MarketBeat consensus of "Reduce" and a $39.21 price target.

Mount Capital Ltd increased its stake in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 86.9% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 820,800 shares of the company's stock after buying an additional 381,700 shares during the quarter. CarMax comprises approximately 13.2% of Mount Capital Ltd's investment portfolio, making the stock its 2nd biggest holding. Mount Capital Ltd owned 0.56% of CarMax worth $36,829,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in KMX. CYBER HORNET ETFs LLC acquired a new stake in CarMax during the 2nd quarter worth about $28,000. MUFG Securities EMEA plc acquired a new position in shares of CarMax in the second quarter valued at about $30,000. Center for Financial Planning Inc. purchased a new position in shares of CarMax in the third quarter worth about $31,000. Strengthening Families & Communities LLC lifted its holdings in shares of CarMax by 220.0% during the third quarter. Strengthening Families & Communities LLC now owns 880 shares of the company's stock worth $39,000 after purchasing an additional 605 shares during the period. Finally, Smartleaf Asset Management LLC lifted its holdings in shares of CarMax by 121.1% during the third quarter. Smartleaf Asset Management LLC now owns 984 shares of the company's stock worth $45,000 after purchasing an additional 539 shares during the period.

CarMax Price Performance

Shares of NYSE KMX opened at $41.86 on Friday. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.99 and a quick ratio of 0.51. The stock has a market capitalization of $5.94 billion, a price-to-earnings ratio of 13.82, a PEG ratio of 0.98 and a beta of 1.35. The firm's 50 day simple moving average is $44.39 and its 200-day simple moving average is $44.70. CarMax, Inc. has a 12 month low of $30.26 and a 12 month high of $82.79.

CarMax (NYSE:KMX - Get Free Report) last posted 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 firm had revenue of $5.79 billion during the quarter, compared to analysts' expectations of $5.66 billion. CarMax had a net margin of 1.77% and a return on equity of 7.72%. The business's revenue was down 6.9% compared to the same quarter last year. During the same period in the previous year, the business posted $0.81 EPS. Analysts expect that CarMax, Inc. will post 3.23 EPS for the current year.

Wall Street Analyst Weigh In

KMX has been the topic of several research reports. Mizuho cut their price target on shares of CarMax from $46.00 to $36.00 and set a "neutral" rating on the stock in a report on Friday, December 19th. Robert W. Baird upped their price objective on shares of CarMax from $44.00 to $48.00 and gave the company an "outperform" rating in a report on Wednesday, February 18th. Wall Street Zen lowered shares of CarMax from a "hold" rating to a "sell" rating in a research note on Saturday. Stephens decreased their target price on shares of CarMax from $39.00 to $36.00 and set an "equal weight" rating for the company in a research report on Friday, December 19th. Finally, Barclays upped their price target on shares of CarMax from $24.00 to $28.00 and gave the company an "underweight" rating in a report on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twelve have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, CarMax has a consensus rating of "Reduce" and a consensus price target of $39.21.

CarMax Company Profile

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.

Want to see what other hedge funds are holding KMX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for CarMax, Inc. (NYSE:KMX - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.