CarMax, Inc. $KMX Shares Sold by Vanguard Group Inc.

Key Points

• Vanguard Group Inc. trimmed its stake in CarMax by 10.8% in Q4, selling 1,822,249 shares and retaining 15,076,900 shares (about 10.63% of the company) valued at roughly $582.6 million.
• Analysts are mixed but cautious: the consensus rating is "Reduce" with a $41.21 price target (1 Buy, 13 Hold, 5 Sell reported), and several firms have adjusted price targets and ratings recently.
• CarMax beat the latest quarter's EPS and revenue estimates ($0.34 vs. $0.22 and $5.95B vs. $5.65B) despite revenue down 1% year-over-year, and the stock trades in the mid-$30s with a market cap of about $5.23 billion and a 52-week range of $30.26–$71.99.

Vanguard Group Inc. trimmed its position in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 10.8% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 15,076,900 shares of the company's stock after selling 1,822,249 shares during the period. Vanguard Group Inc. owned approximately 10.63% of CarMax worth $582,571,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. Dimensional Fund Advisors LP increased its holdings in CarMax by 33.2% in the 3rd quarter. Dimensional Fund Advisors LP now owns 3,685,201 shares of the company's stock valued at $165,358,000 after purchasing an additional 918,553 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its position in CarMax by 73.7% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company's stock valued at $158,074,000 after buying an additional 1,494,205 shares during the last quarter. Invesco Ltd. boosted its position in CarMax by 14.2% in the 3rd quarter. Invesco Ltd. now owns 3,425,737 shares of the company's stock valued at $153,713,000 after buying an additional 426,809 shares during the last quarter. Turtle Creek Asset Management Inc. boosted its position in CarMax by 0.6% in the 3rd quarter. Turtle Creek Asset Management Inc. now owns 2,707,477 shares of the company's stock valued at $121,484,000 after buying an additional 16,627 shares during the last quarter. Finally, Vulcan Value Partners LLC boosted its position in CarMax by 135.2% in the 3rd quarter. Vulcan Value Partners LLC now owns 2,328,120 shares of the company's stock valued at $104,569,000 after buying an additional 1,338,134 shares during the last quarter.

Analyst Upgrades and Downgrades

KMX has been the subject of a number of analyst reports. Wall Street Zen cut shares of CarMax from a "hold" rating to a "sell" rating in a research report on Saturday, April 18th. JPMorgan Chase & Co. upped their price objective on shares of CarMax from $28.00 to $35.00 and gave the company an "underweight" rating in a research report on Wednesday, April 15th. Evercore set a $45.00 price objective on shares of CarMax in a research report on Friday, April 10th. Stephens increased their price target on shares of CarMax from $39.00 to $43.00 and gave the stock an "equal weight" rating in a research report on Thursday, April 2nd. Finally, Argus raised shares of CarMax to a "hold" rating in a research report on Thursday, April 16th. One investment analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and five have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus price target of $41.21.

CarMax Stock Performance

Shares of NYSE KMX opened at $36.87 on Tuesday. The company has a quick ratio of 0.49, a current ratio of 2.20 and a debt-to-equity ratio of 2.93. The firm's 50-day moving average price is $41.77 and its two-hundred day moving average price is $41.51. CarMax, Inc. has a 52-week low of $30.26 and a 52-week high of $71.99. The stock has a market capitalization of $5.23 billion, a P/E ratio of 23.05, a P/E/G ratio of 1.43 and a beta of 1.19.

CarMax (NYSE:KMX - Get Free Report) last issued its earnings results on Tuesday, April 14th. The company reported $0.34 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.22 by $0.12. CarMax had a net margin of 0.96% and a return on equity of 7.00%. The firm had revenue of $5.95 billion for the quarter, compared to analysts' expectations of $5.65 billion. During the same quarter last year, the company posted $0.58 earnings per share. CarMax's revenue was down 1.0% on a year-over-year basis. As a group, sell-side analysts forecast that CarMax, Inc. will post 2.34 earnings per share for the current year.

CarMax Profile

CarMax NYSE: KMX is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company's inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax's retail locations or browse the company's online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.

Want to see what other hedge funds are holding KMX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for CarMax, Inc. (NYSE:KMX - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.