CarMax, Inc. $KMX Stock Acquired by Kinsale Capital Group Inc.

Key Points

• Kinsale Capital increased its CarMax stake by 25.9% in the third quarter, adding 45,290 shares to hold 219,927 shares valued at about $12.1 million.
• CarMax reported quarterly earnings of $1.16 per share, beating the $0.73 consensus estimate; revenue of $7.88 billion also topped expectations and rose 19.5% year over year.
• Analyst sentiment remains mostly cautious: CarMax has an average “Hold” rating and a $58 average price target, with 12 of 17 analysts rating the stock Hold.

Kinsale Capital Group Inc. increased its stake in CarMax, Inc. (NYSE:KMX - Free Report) by 25.9% in the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 219,927 shares of the company's stock after purchasing an additional 45,290 shares during the quarter. CarMax accounts for 1.6% of Kinsale Capital Group Inc.'s investment portfolio, making the stock its 24th largest position. Kinsale Capital Group Inc. owned approximately 0.15% of CarMax worth $12,120,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also made changes to their positions in the stock. IFP Advisors Inc grew its position in CarMax by 9.8% during the third quarter. IFP Advisors Inc now owns 2,348 shares of the company's stock worth $129,000 after buying an additional 210 shares during the period. Sequoia Financial Advisors LLC lifted its position in shares of CarMax by 5.1% during the 1st quarter. Sequoia Financial Advisors LLC now owns 6,460 shares of the company's stock valued at $269,000 after acquiring an additional 311 shares during the period. Basecamp Wealth Advisors LLC lifted its position in shares of CarMax by 105.8% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company's stock valued at $26,000 after acquiring an additional 327 shares during the period. Verus Financial Partners Inc. lifted its position in shares of CarMax by 7.0% during the 3rd quarter. Verus Financial Partners Inc. now owns 5,026 shares of the company's stock valued at $277,000 after acquiring an additional 330 shares during the period. Finally, Pinnacle Wealth Planning Services Inc. boosted its stake in shares of CarMax by 15.3% during the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,888 shares of the company's stock worth $159,000 after acquiring an additional 384 shares in the last quarter.

CarMax Stock Up 5.3%

KMX opened at $54.21 on Tuesday. The firm has a market cap of $7.69 billion, a P/E ratio of 26.45, a PEG ratio of 1.52 and a beta of 1.22. The business's fifty day simple moving average is $56.00 and its 200 day simple moving average is $49.65. CarMax, Inc. has a 52 week low of $31.81 and a 52 week high of $65.28. The company has a quick ratio of 0.57, a current ratio of 2.33 and a debt-to-equity ratio of 2.66.

CarMax (NYSE:KMX - Get Free Report) last announced its earnings results on Tuesday, September 29th. The company reported $1.16 earnings per share for the quarter, beating the consensus estimate of $0.73 by $0.43. The firm had revenue of $7.88 billion during the quarter, compared to the consensus estimate of $7.09 billion. CarMax had a net margin of 1.06% and a return on equity of 7.76%. The firm's revenue for the quarter was up 19.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.64 EPS. As a group, equities research analysts anticipate that CarMax, Inc. will post 3.23 EPS for the current fiscal year.

Wall Street Analyst Weigh In

KMX has been the topic of a number of research reports. Barclays upped their price target on CarMax from $61.00 to $67.00 and gave the stock an "equal weight" rating in a report on Wednesday, September 30th. Truist Financial raised their price objective on CarMax from $50.00 to $60.00 and gave the company a "hold" rating in a research note on Wednesday, September 30th. JPMorgan Chase & Co. reduced their price objective on CarMax from $70.00 to $65.00 and set a "neutral" rating for the company in a report on Wednesday, November 4th. Morgan Stanley boosted their target price on CarMax from $47.00 to $53.00 and gave the stock an "equal weight" rating in a research report on Wednesday, September 30th. Finally, Wall Street Zen lowered CarMax from a "buy" rating to a "hold" rating in a report on Saturday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $58.00.

CarMax Company Profile

CarMax, Inc is a U.S. used-vehicle retailer headquartered in Richmond, Virginia. The company sells used cars, trucks and SUVs through a network of retail stores and online platforms, where customers can browse vehicles and complete parts of the buying process digitally.

In addition to retail sales, CarMax buys vehicles from consumers and operates wholesale auctions for vehicles that are not sold through its retail stores. Its related services include vehicle financing through CarMax Auto Finance and optional vehicle protection products.

CarMax opened its first store in Richmond in 1993 and has since expanded its operations across the United States.

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