CarMax, Inc. $KMX Shares Bought by Nexus Investment Management ULC

Key Points

• Nexus Investment Management ULC increased its stake in CarMax, Inc. by 7.5% during Q2, owning a total of 377,645 shares valued at approximately $25.4 million.
• CarMax's quarterly earnings report missed estimates, with an EPS of $0.64 compared to the expected $1.03, and revenue fell 6.0% year-over-year.
• Several analysts have downgraded CarMax's stock ratings, leading to a consensus rating of "Hold" and an average price target of $54.42.

Nexus Investment Management ULC grew its stake in CarMax, Inc. (NYSE:KMX - Free Report) by 7.5% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 377,645 shares of the company's stock after purchasing an additional 26,200 shares during the quarter. CarMax makes up 3.8% of Nexus Investment Management ULC's holdings, making the stock its 11th biggest position. Nexus Investment Management ULC owned about 0.25% of CarMax worth $25,382,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently made changes to their positions in the company. Bayforest Capital Ltd acquired a new stake in shares of CarMax in the second quarter valued at about $677,000. Equitable Trust Co. increased its stake in CarMax by 52.3% during the second quarter. Equitable Trust Co. now owns 12,009 shares of the company's stock worth $807,000 after acquiring an additional 4,122 shares during the last quarter. TD Asset Management Inc lifted its stake in shares of CarMax by 6.7% in the 2nd quarter. TD Asset Management Inc now owns 44,142 shares of the company's stock valued at $2,967,000 after purchasing an additional 2,761 shares during the last quarter. NorthRock Partners LLC purchased a new position in shares of CarMax during the 2nd quarter worth $374,000. Finally, MGO One Seven LLC increased its position in shares of CarMax by 5.5% during the 2nd quarter. MGO One Seven LLC now owns 8,918 shares of the company's stock worth $599,000 after purchasing an additional 466 shares during the last quarter.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on KMX shares. Stephens lowered shares of CarMax from an "overweight" rating to an "equal weight" rating and lowered their target price for the stock from $53.00 to $42.00 in a research note on Tuesday, October 7th. Mizuho cut their target price on CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a research report on Thursday, July 3rd. Zacks Research cut CarMax from a "hold" rating to a "strong sell" rating in a research note on Thursday, October 2nd. Morgan Stanley cut their price target on shares of CarMax from $80.00 to $56.00 and set an "overweight" rating on the stock in a research note on Wednesday, October 1st. Finally, Benchmark reduced their target price on shares of CarMax from $75.00 to $60.00 and set a "buy" rating on the stock in a report on Tuesday, October 7th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, CarMax presently has a consensus rating of "Hold" and an average price target of $54.42.

CarMax Stock Up 0.7%

KMX stock opened at $44.00 on Wednesday. The company's 50 day moving average price is $55.19 and its 200 day moving average price is $62.45. The firm has a market capitalization of $6.46 billion, a price-to-earnings ratio of 12.90, a PEG ratio of 0.83 and a beta of 1.27. CarMax, Inc. has a fifty-two week low of $42.75 and a fifty-two week 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 posted its quarterly earnings results on Thursday, September 25th. The company reported $0.64 EPS for the quarter, missing the consensus estimate of $1.03 by ($0.39). CarMax had a return on equity of 8.51% and a net margin of 1.98%.The firm had revenue of $6.59 billion for the quarter, compared to analyst estimates of $7.07 billion. During the same quarter last year, the firm earned $0.85 EPS. The company's revenue was down 6.0% on a year-over-year basis. On average, equities research analysts anticipate that CarMax, Inc. will post 3.23 EPS for the current fiscal year.

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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