CarMax, Inc. $KMX Shares Acquired by State Street Corp

Key Points

• State Street increased its CarMax stake by 5.6% in the second quarter, adding 271,216 shares and bringing its holdings to 5.16 million shares, worth approximately $272.7 million.
• Analyst sentiment remains cautious: CarMax has a consensus “Reduce” rating, with 14 Hold and four Sell ratings, and an average price target of $51.87.
• CarMax shares opened at $57.53 and were up 1.2%, while the company faces mixed near-term signals from expected earnings growth, corporate layoffs and concerns about used-vehicle demand and market conditions.

State Street Corp lifted its position in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 5.6% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 5,156,276 shares of the company's stock after acquiring an additional 271,216 shares during the period. State Street Corp owned about 3.63% of CarMax worth $272,715,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in KMX. Basecamp Wealth Advisors LLC grew its position in CarMax by 105.8% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company's stock worth $26,000 after purchasing an additional 327 shares during the last quarter. Huntington National Bank grew its holdings in CarMax by 62.4% during the fourth quarter. Huntington National Bank now owns 690 shares of the company's stock worth $27,000 after acquiring an additional 265 shares during the period. Global Retirement Partners LLC bought a new stake in shares of CarMax in the 2nd quarter worth approximately $29,000. Wellington Grp LLC lifted its position in shares of CarMax by 6,500.0% during the 1st quarter. Wellington Grp LLC now owns 726 shares of the company's stock valued at $30,000 after acquiring an additional 715 shares during the last quarter. Finally, Commonwealth Retirement Investments LLC purchased a new stake in shares of CarMax during the fourth quarter valued at $33,000.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Barclays raised shares of CarMax from an "underweight" rating to an "equal weight" rating and raised their price objective for the stock from $37.00 to $61.00 in a research note on Tuesday, July 21st. Morgan Stanley lifted their target price on shares of CarMax from $44.00 to $47.00 and gave the stock a "cautious" rating in a report on Wednesday. Weiss Ratings raised shares of CarMax from a "sell (d)" rating to a "sell (d+)" rating in a research report on Monday, July 20th. Wall Street Zen upgraded CarMax from a "sell" rating to a "hold" rating in a research note on Saturday, June 13th. Finally, Benchmark reissued a "hold" rating on shares of CarMax in a report on Thursday, June 18th. Two analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, CarMax currently has a consensus rating of "Reduce" and an average price target of $51.87.

CarMax Stock Up 1.2%

KMX opened at $57.53 on Thursday. The firm has a market cap of $8.16 billion, a price-to-earnings ratio of 37.60, a PEG ratio of 2.62 and a beta of 1.17. The firm's 50-day simple moving average is $59.56 and its 200-day simple moving average is $49.77. The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.82 and a current ratio of 2.70. CarMax, Inc. has a twelve month low of $30.26 and a twelve month high of $65.28.

CarMax News Summary

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: A review of CarMax’s second-quarter performance described the vehicle retailer as a standout, providing a favorable backdrop ahead of its earnings report. Stronger-than-expected operating trends could support the shares if confirmed in the company’s results. Vehicle retailer Q2 earnings: CarMax simply the best
• Positive Sentiment: CarMax eliminated 145 corporate positions, or roughly 4% of its corporate workforce. Although the cuts highlight pressure on the business, investors may view the move as a way to reduce expenses and improve margins. Market Chatter: CarMax Cuts 145 More Jobs
• Neutral Sentiment: Morgan Stanley raised its CarMax price target from $44 to $47 but maintained an “equal weight” rating. The higher target is modestly positive, yet it remains well below the stock’s recent trading level, signaling valuation concerns.
• Neutral Sentiment: CarMax is scheduled to report quarterly earnings, making management’s outlook, used-vehicle demand, financing conditions and cost savings key near-term catalysts. Analysts expect earnings growth, but recent previews do not identify strong conditions for a likely earnings beat. CarMax Earnings Expected to Grow
• Negative Sentiment: The latest layoffs are reportedly the third round of corporate reductions, reinforcing concerns about weakening market conditions and putting pressure on the stock despite the potential cost benefits. Why CarMax Is Down After Corporate Layoffs
• Negative Sentiment: Bernstein Liebhard announced a shareholder investigation into potential breaches of fiduciary duty by CarMax directors and officers. The announcement creates additional reputational and legal uncertainty, although it does not establish wrongdoing. CarMax Shareholder Investigation Alert

About CarMax

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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