Ariel Investments LLC Lowers Position in CarMax, Inc. $KMX

Key Points

• Ariel Investments LLC reduced its stake in CarMax, Inc. by 9.9%, selling 61,594 shares during the first quarter, now holding a total of 559,149 shares valued at approximately $43.57 million.
• Several institutions adjusted their positions in CarMax, with Strengthening Families & Communities LLC increasing its stake by 93.1%, and other firms such as Zions Bancorporation and Accent Capital also entering new positions.
• Analysts have mixed reviews on CarMax, with a consensus rating of "Moderate Buy" and an average target price of $81.50, while recent earnings showed a 6.1% year-over-year revenue increase.

Ariel Investments LLC lowered its position in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 9.9% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 559,149 shares of the company's stock after selling 61,594 shares during the period. Ariel Investments LLC owned about 0.37% of CarMax worth $43,569,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of the company. Amundi grew its position in CarMax by 16.4% during the 1st quarter. Amundi now owns 420,114 shares of the company's stock worth $32,122,000 after acquiring an additional 59,247 shares during the last quarter. Adage Capital Partners GP L.L.C. grew its position in shares of CarMax by 37.1% in the 1st quarter. Adage Capital Partners GP L.L.C. now owns 269,116 shares of the company's stock valued at $20,970,000 after buying an additional 72,816 shares during the last quarter. Federation des caisses Desjardins du Quebec grew its position in shares of CarMax by 145.9% in the 1st quarter. Federation des caisses Desjardins du Quebec now owns 28,510 shares of the company's stock valued at $2,222,000 after buying an additional 16,916 shares during the last quarter. Maverick Capital Ltd. bought a new stake in shares of CarMax in the 1st quarter valued at about $6,159,000. Finally, Focus Partners Advisor Solutions LLC grew its position in shares of CarMax by 163.7% in the 1st quarter. Focus Partners Advisor Solutions LLC now owns 6,671 shares of the company's stock valued at $520,000 after buying an additional 4,141 shares during the last quarter.

Analyst Ratings Changes

A number of research firms have commented on KMX. Evercore ISI reduced their price target on CarMax from $82.00 to $80.00 and set an "outperform" rating on the stock in a research report on Tuesday, August 12th. Mizuho reduced their price target on CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a research report on Thursday, July 3rd. Royal Bank Of Canada upped their price target on CarMax from $80.00 to $81.00 and gave the company an "outperform" rating in a research report on Monday, June 23rd. Truist Financial upped their price target on CarMax from $72.00 to $74.00 and gave the company a "hold" rating in a research report on Monday, June 23rd. Finally, JPMorgan Chase & Co. raised 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 research note on Wednesday, August 6th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, CarMax currently has an average rating of "Moderate Buy" and an average price target of $81.50.

CarMax Stock Down 0.3%

KMX stock traded down $0.20 during trading on Friday, reaching $60.75. 2,367,303 shares of the stock were exchanged, compared to its average volume of 2,422,317. The firm's 50 day moving average is $61.30 and its 200 day moving average is $67.06. The firm has a market cap of $9.12 billion, a P/E ratio of 16.78, a price-to-earnings-growth ratio of 0.99 and a beta of 1.35. The company has a current ratio of 2.39, a quick ratio of 0.80 and a debt-to-equity ratio of 2.86. CarMax, Inc. has a twelve month low of $54.53 and a twelve month high of $91.25.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings results on Friday, June 20th. The company reported $1.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.18 by $0.20. The business had revenue of $7.55 billion for 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%.The company's quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.97 earnings per share. As a group, research analysts forecast that CarMax, Inc. will post 3.23 EPS for the current year.

Insider Transactions at CarMax

In other CarMax news, EVP Jon G. Daniels sold 1,540 shares of the stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $70.64, for a total value 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 1.70% of the company's stock.

CarMax Company 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.