CarMax, Inc. $KMX Stock: Sterling Capital Management LLC Increases Holdings

Key Points

• Sterling Capital Management increased its CarMax stake by 528.6% in the third quarter, bringing its holdings to 26,758 shares valued at approximately $1.48 million. Several other institutional investors also initiated or expanded positions.
• Analyst sentiment remains mixed, with CarMax receiving an overall “Hold” rating and an average price target of $57.85. Recent targets ranged from $48 to $74, including an “Overweight” rating from Stephens and a “Strong Sell” rating from BNP Paribas Exane.
• CarMax reported quarterly earnings of $1.16 per share, beating estimates of $0.73, while revenue rose 19.5% year over year to $7.88 billion. The stock opened at $52.49, with a 52-week range of $30.26 to $65.28.

Sterling Capital Management LLC increased its stake in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 528.6% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 26,758 shares of the company's stock after acquiring an additional 22,501 shares during the quarter. Sterling Capital Management LLC's holdings in CarMax were worth $1,475,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also bought and sold shares of KMX. MBL Wealth LLC acquired a new stake in CarMax in the 3rd quarter worth $449,000. Compass Wealth Management LLC bought a new position in shares of CarMax during the 3rd quarter worth about $61,000. Root Financial Partners LLC bought a new position in shares of CarMax during the 3rd quarter worth about $130,000. Reyes Financial Architecture Inc. acquired a new position in shares of CarMax during the third quarter valued at about $53,000. Finally, IFP Advisors Inc raised its position in shares of CarMax by 9.8% during the third quarter. IFP Advisors Inc now owns 2,348 shares of the company's stock valued at $129,000 after buying an additional 210 shares during the last quarter.

Analyst Ratings Changes

A number of research firms recently weighed in on KMX. UBS Group set a $65.00 target price on CarMax in a research report on Thursday, October 15th. BNP Paribas Exane reaffirmed a "strong sell" rating and issued a $48.00 price target (up from $33.00) on shares of CarMax in a report on Wednesday, September 30th. Truist Financial raised their price objective on CarMax from $50.00 to $60.00 and gave the stock a "hold" rating in a research report on Wednesday, September 30th. Morgan Stanley lifted their price objective on CarMax from $47.00 to $53.00 and gave the stock an "equal weight" rating in a report on Wednesday, September 30th. Finally, Stephens lifted their price objective on CarMax from $66.00 to $74.00 and gave the stock an "overweight" rating in a report on Friday, September 25th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $57.85.

CarMax Stock Performance

NYSE KMX opened at $52.49 on Tuesday. The stock has a market cap of $7.45 billion, a P/E ratio of 25.60, a PEG ratio of 1.42 and a beta of 1.23. The company's 50-day simple moving average is $57.41 and its 200 day simple moving average is $49.26. CarMax, Inc. has a twelve month low of $30.26 and a twelve month 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 quarterly earnings results on Tuesday, September 29th. The company reported $1.16 EPS for the quarter, topping analysts' consensus estimates of $0.73 by $0.43. CarMax had a net margin of 1.06% and a return on equity of 7.76%. The firm had revenue of $7.88 billion during the quarter, compared to analysts' expectations of $7.09 billion. During the same quarter last year, the company earned $0.64 earnings per share. The company's revenue for the quarter was up 19.5% compared to the same quarter last year. As a group, research analysts forecast that CarMax, Inc. will post 3.15 earnings per share for the current fiscal year.

CarMax Company Profile

CarMax, Inc is a specialty retailer of used vehicles and operates one of the largest used-car sales networks in the United States. The company sells a broad selection of pre-owned cars, trucks and SUVs through its retail stores and online platform, offering customers tools for vehicle search, appraisal, financing and purchase.

CarMax also operates a vehicle appraisal and acquisition business, buying vehicles from consumers and other sources for resale through its retail or wholesale channels.

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