CarMax, Inc. $KMX Stake Lifted by ThornTree Capital Partners LP

Key Points

• ThornTree Capital Partners LP increased its stake in CarMax, Inc. by 7.9%, now owning 470,068 shares valued at approximately $36.6 million, making it the fund's 3rd largest position.
• CarMax reported earnings of $1.38 per share for the most recent quarter, exceeding analysts' expectations of $1.18 but falling short of revenue projections with $7.55 billion reported.
• Analysts have mixed ratings on CarMax stock, with a consensus price target of $81.50, as various firms adjusted their ratings and price objectives for the stock.

ThornTree Capital Partners LP boosted its holdings in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 7.9% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The firm owned 470,068 shares of the company's stock after buying an additional 34,500 shares during the period. CarMax makes up about 8.1% of ThornTree Capital Partners LP's holdings, making the stock its 3rd largest holding. ThornTree Capital Partners LP owned 0.31% of CarMax worth $36,628,000 at the end of the most recent quarter.

Other large investors also recently added to or reduced their stakes in the company. Fuller & Thaler Asset Management Inc. lifted its stake in CarMax by 626.1% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 903,024 shares of the company's stock worth $70,364,000 after purchasing an additional 778,652 shares during the last quarter. GAMMA Investing LLC lifted its stake in CarMax by 8,675.6% during the first quarter. GAMMA Investing LLC now owns 515,830 shares of the company's stock worth $40,193,000 after purchasing an additional 509,952 shares during the last quarter. Nuveen LLC bought a new stake in CarMax during the first quarter worth about $33,872,000. Philadelphia Financial Management of San Francisco LLC bought a new stake in CarMax during the first quarter worth about $16,370,000. Finally, Wellington Management Group LLP lifted its stake in CarMax by 34.2% during the first quarter. Wellington Management Group LLP now owns 815,461 shares of the company's stock worth $63,541,000 after purchasing an additional 207,665 shares during the last quarter.

Insider Buying and Selling

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

CarMax Trading Up 0.1%

KMX traded up $0.04 during midday trading on Tuesday, reaching $61.42. 2,237,942 shares of the company's stock traded hands, compared to its average volume of 2,476,621. The firm has a fifty day moving average of $61.00 and a two-hundred day moving average of $66.74. The stock has a market capitalization of $9.22 billion, a price-to-earnings ratio of 16.97, a P/E/G ratio of 1.00 and a beta of 1.35. The company has a debt-to-equity ratio of 2.86, a current ratio of 2.39 and a quick ratio of 0.80. CarMax, Inc. has a 52 week low of $54.53 and a 52 week high of $91.25.

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

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on KMX shares. Needham & Company LLC reaffirmed a "buy" rating and set a $92.00 price target on shares of CarMax in a research note on Monday, June 23rd. Royal Bank Of Canada boosted their target price on CarMax from $80.00 to $81.00 and gave the company an "outperform" rating in a research note on Monday, June 23rd. Stephens reissued an "overweight" rating and issued a $81.00 target price on shares of CarMax in a research note on Tuesday, August 19th. JPMorgan Chase & Co. raised CarMax from an "underweight" rating to a "neutral" rating and lowered their target price for the company from $65.00 to $58.00 in a research note on Wednesday, August 6th. Finally, Mizuho lowered their target price on CarMax from $80.00 to $78.00 and set a "neutral" rating for the company in a research note on Thursday, July 3rd. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus 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.