CarMax, Inc. $KMX Stock Position Boosted by Silver Heights Capital Management Inc

Key Points

• Silver Heights Capital Management boosted its CarMax stake by 39.5% in Q3 to 926,167 shares (an additional 262,478 shares), making KMX its third-largest holding and representing about 0.63% of the company (~$41.56M).
• CarMax reported Q results showing an EPS beat of $0.43 vs. $0.31 consensus and revenue of $5.79B (down 6.9% YoY), indicating mixed operational performance despite beating estimates.
• Analyst sentiment is muted with a MarketBeat consensus rating of "Reduce" and a $39.21 target; the stock trades around $42.46 with a market cap of ~$6.02B and a P/E of 14.01.

Silver Heights Capital Management Inc grew its position in CarMax, Inc. (NYSE:KMX - Free Report) by 39.5% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 926,167 shares of the company's stock after buying an additional 262,478 shares during the quarter. CarMax accounts for 18.6% of Silver Heights Capital Management Inc's holdings, making the stock its 3rd largest holding. Silver Heights Capital Management Inc owned about 0.63% of CarMax worth $41,557,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of CarMax by 0.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,389 shares of the company's stock worth $2,446,000 after purchasing an additional 173 shares during the last quarter. Jones Financial Companies Lllp grew its stake in shares of CarMax by 3.1% during the first quarter. Jones Financial Companies Lllp now owns 5,372 shares of the company's stock worth $419,000 after acquiring an additional 161 shares during the last quarter. Empowered Funds LLC grew its position in CarMax by 12.5% during the 1st quarter. Empowered Funds LLC now owns 5,273 shares of the company's stock worth $411,000 after purchasing an additional 585 shares during the last quarter. Intech Investment Management LLC lifted its stake in shares of CarMax by 61.7% during the first quarter. Intech Investment Management LLC now owns 19,143 shares of the company's stock worth $1,492,000 after buying an additional 7,307 shares during the period. Finally, Acadian Asset Management LLC acquired a new stake in CarMax during the 1st quarter worth about $727,000.

CarMax Price Performance

Shares of KMX opened at $42.46 on Tuesday. CarMax, Inc. has a 1-year low of $30.26 and a 1-year high of $82.79. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.99 and a quick ratio of 0.51. The firm has a 50-day simple moving average of $44.16 and a two-hundred day simple moving average of $44.99. The stock has a market cap of $6.02 billion, a PE ratio of 14.01, a P/E/G ratio of 0.99 and a beta of 1.35.

CarMax (NYSE:KMX - Get Free Report) last posted its earnings results on Thursday, December 18th. The company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.31 by $0.12. CarMax had a return on equity of 7.72% and a net margin of 1.77%.The firm had revenue of $5.79 billion for the quarter, compared to analyst estimates of $5.66 billion. During the same quarter in the prior year, the company earned $0.81 EPS. CarMax's revenue was down 6.9% on a year-over-year basis. As a group, analysts forecast that CarMax, Inc. will post 3.23 EPS for the current year.

Wall Street Analyst Weigh In

Several research firms have recently commented on KMX. Barclays upped their price objective on shares of CarMax from $24.00 to $28.00 and gave the company an "underweight" rating in a report on Wednesday, January 21st. JPMorgan Chase & Co. lowered their target price on shares of CarMax from $30.00 to $28.00 and set an "underweight" rating on the stock in a research note on Friday, December 19th. Morgan Stanley set a $35.00 target price on CarMax in a research note on Monday, December 8th. Benchmark reissued a "hold" rating on shares of CarMax in a research note on Tuesday, December 16th. Finally, Mizuho lowered their price target on CarMax from $46.00 to $36.00 and set a "neutral" rating on the stock in a research note on Friday, December 19th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have issued a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $39.21.

About CarMax

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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