CarMax, Inc. $KMX Stock Holdings Raised by Bank of America Corp DE

Key Points

• Bank of America increased its CarMax stake by 61.7% in the first quarter, adding 643,834 shares to own 1.69 million shares worth approximately $70.2 million. Several other major institutional investors also significantly expanded their positions.
• CarMax reported quarterly earnings of $1.31 per share, beating estimates of $0.96, while revenue rose 6.2% year over year to $8.01 billion. The stock opened at $59.03, near its 12-month high of $62.56.
• Analyst sentiment remains cautious, with an average rating of “Reduce” and a $51 target price, despite Stephens upgrading the stock to “overweight.” CarMax insiders also purchased 13,900 shares worth about $735,574 over the past 90 days.

Bank of America Corp DE grew its stake in CarMax, Inc. (NYSE:KMX - Free Report) by 61.7% during the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 1,687,359 shares of the company's stock after purchasing an additional 643,834 shares during the quarter. Bank of America Corp DE owned approximately 1.19% of CarMax worth $70,160,000 as of its most recent filing with the SEC.

Several other large investors have also modified their holdings of KMX. SRS Investment Management LLC raised its stake in CarMax by 1,717.5% during the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company's stock worth $217,845,000 after acquiring an additional 5,327,603 shares during the period. AQR Capital Management LLC boosted its stake in CarMax by 151.8% in the fourth quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company's stock valued at $306,429,000 after acquiring an additional 4,780,903 shares during the period. Norges Bank acquired a new position in shares of CarMax during the fourth quarter valued at $159,232,000. Arrowstreet Capital Limited Partnership increased its holdings in shares of CarMax by 73.7% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company's stock worth $158,074,000 after acquiring an additional 1,494,205 shares during the period. Finally, Renaissance Technologies LLC increased its holdings in shares of CarMax by 1,467.5% in the 4th quarter. Renaissance Technologies LLC now owns 1,149,000 shares of the company's stock worth $44,397,000 after acquiring an additional 1,075,700 shares during the period.

CarMax Price Performance

NYSE KMX opened at $59.03 on Tuesday. CarMax, Inc. has a 12 month low of $30.26 and a 12 month high of $62.56. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82. The firm has a market capitalization of $8.38 billion, a PE ratio of 38.58, a P/E/G ratio of 2.66 and a beta of 1.15. The company's 50 day simple moving average is $53.57 and its 200 day simple moving average is $46.16.

CarMax (NYSE:KMX - Get Free Report) last released its earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, topping analysts' consensus estimates of $0.96 by $0.35. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The firm had revenue of $8.01 billion during the quarter, compared to the consensus estimate of $7.42 billion. During the same period in the prior year, the firm posted $1.38 earnings per share. The firm's revenue for the quarter was up 6.2% compared to the same quarter last year. As a group, equities research analysts forecast that CarMax, Inc. will post 2.73 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the stock. Stephens raised shares of CarMax from an "equal weight" rating to an "overweight" rating and set a $66.00 target price for the company in a research note on Thursday, June 18th. Argus upgraded shares of CarMax to a "hold" rating in a research note on Thursday, April 16th. Morgan Stanley lifted their price target on CarMax from $35.00 to $44.00 and gave the company an "equal weight" rating in a report on Tuesday, June 23rd. Wall Street Zen raised CarMax from a "sell" rating to a "hold" rating in a report on Saturday, June 13th. Finally, Bank of America boosted their price objective on CarMax from $40.00 to $45.00 and gave the stock an "underperform" rating in a research report on Wednesday, June 17th. Two investment analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Reduce" and an average target price of $51.00.

Insider Activity at CarMax

In other CarMax news, CEO Keith Barr purchased 9,400 shares of the company's stock in a transaction on Monday, June 22nd. The shares were purchased at an average cost of $53.01 per share, for a total transaction of $498,294.00. Following the completion of the transaction, the chief executive officer owned 33,375 shares in the company, valued at $1,769,208.75. The trade was a 39.21% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Sona Chawla purchased 2,000 shares of the business's stock in a transaction on Thursday, June 25th. The stock was acquired at an average cost of $53.39 per share, with a total value of $106,780.00. Following the completion of the acquisition, the director directly owned 21,702 shares in the company, valued at $1,158,669.78. The trade was a 10.15% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought 13,900 shares of company stock valued at $735,574 over the last 90 days. 1.01% of the stock is currently owned by corporate insiders.

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.

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