Ruane Cunniff & Goldfarb L.P. Has $489,000 Stake in CarMax, Inc. $KMX

Key Points

• Ruane Cunniff & Goldfarb L.P. has reduced its stake in CarMax, Inc. by 77.2%, owning only 6,280 shares after selling 21,291 shares in the first quarter.
• CarMax reported earnings of $1.38 per share for the last quarter, exceeding analyst estimates of $1.18, while revenue reached $7.55 billion, slightly below expectations.
• Analysts currently rate CarMax with an average "Moderate Buy" recommendation, with target prices ranging from $74.00 to $92.00 per share.

Ruane Cunniff & Goldfarb L.P. trimmed its position in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 77.2% during the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 6,280 shares of the company's stock after selling 21,291 shares during the period. CarMax accounts for 0.0% of Ruane Cunniff & Goldfarb L.P.'s investment portfolio, making the stock its 26th biggest holding. Ruane Cunniff & Goldfarb L.P.'s holdings in CarMax were worth $489,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Janus Henderson Group PLC grew its position in CarMax by 0.6% during the 4th quarter. Janus Henderson Group PLC now owns 4,671,950 shares of the company's stock worth $381,978,000 after purchasing an additional 29,715 shares in the last quarter. Baird Financial Group Inc. grew its position in CarMax by 7.1% during the 1st quarter. Baird Financial Group Inc. now owns 3,093,632 shares of the company's stock worth $241,056,000 after purchasing an additional 206,106 shares in the last quarter. Invesco Ltd. grew its position in CarMax by 4.9% during the 1st quarter. Invesco Ltd. now owns 2,863,594 shares of the company's stock worth $223,131,000 after purchasing an additional 133,629 shares in the last quarter. Turtle Creek Asset Management Inc. grew its position in CarMax by 2.2% during the 4th quarter. Turtle Creek Asset Management Inc. now owns 2,590,071 shares of the company's stock worth $211,764,000 after purchasing an additional 56,906 shares in the last quarter. Finally, First Pacific Advisors LP grew its position in CarMax by 0.8% during the 1st quarter. First Pacific Advisors LP now owns 2,415,974 shares of the company's stock worth $188,253,000 after purchasing an additional 18,912 shares in the last quarter.

Analysts Set New Price Targets

Several research firms have recently commented on KMX. Morgan Stanley began coverage on shares of CarMax in a report on Tuesday, July 1st. They set an "overweight" rating and a $80.00 price target on the stock. Evercore ISI lowered their price target on shares of CarMax from $82.00 to $80.00 and set an "outperform" rating on the stock in a report on Tuesday, August 12th. Royal Bank Of Canada boosted their price target on shares of CarMax from $80.00 to $81.00 and gave the company an "outperform" rating in a report on Monday, June 23rd. Mizuho lowered their price target on shares of CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a report on Thursday, July 3rd. Finally, Needham & Company LLC restated a "buy" rating and set a $92.00 price target on shares of CarMax in a report on Monday, June 23rd. 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 given a Sell rating to the company. Based on data from MarketBeat, CarMax has a consensus rating of "Moderate Buy" and an average price target of $81.50.

CarMax Stock Up 0.1%

Shares of KMX stock traded up $0.04 on Tuesday, hitting $61.42. The company's stock had a trading volume of 2,237,942 shares, compared to its average volume of 2,476,621. 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 fifty-two week low of $54.53 and a fifty-two week high of $91.25. The firm's fifty day moving average price is $61.00 and its 200-day moving average price is $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.

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

Insiders Place Their Bets

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

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.