True North Advisors LLC Purchases 8,117 Shares of CarMax, Inc. (NYSE:KMX)

Key Points

• True North Advisors LLC increased its holdings in CarMax, Inc. by 16.7%, bringing their total shares to 56,779, which now represent about 0.8% of their investment portfolio.
• CarMax reported a quarterly earnings per share of $1.38, exceeding analysts' expectations, although revenue was slightly below estimates, at $7.55 billion.
• Analysts have mixed opinions on CarMax, with price targets ranging from a low of $75.00 to a high of $92.00, suggesting a generally optimistic outlook with a consensus rating of "Moderate Buy."

True North Advisors LLC raised its position in CarMax, Inc. (NYSE:KMX - Free Report) by 16.7% during the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 56,779 shares of the company's stock after acquiring an additional 8,117 shares during the quarter. CarMax makes up 0.8% of True North Advisors LLC's portfolio, making the stock its 26th biggest holding. True North Advisors LLC's holdings in CarMax were worth $4,424,000 at the end of the most recent quarter.

A number of other institutional investors also recently bought and sold shares of the company. Sequoia Financial Advisors LLC lifted its holdings in CarMax by 5.5% in the first quarter. Sequoia Financial Advisors LLC now owns 3,367 shares of the company's stock valued at $262,000 after acquiring an additional 176 shares during the period. Nicolet Advisory Services LLC lifted its holdings in CarMax by 6.3% in the first quarter. Nicolet Advisory Services LLC now owns 3,576 shares of the company's stock valued at $279,000 after acquiring an additional 212 shares during the period. Parallel Advisors LLC lifted its holdings in CarMax by 38.4% in the first quarter. Parallel Advisors LLC now owns 937 shares of the company's stock valued at $73,000 after acquiring an additional 260 shares during the period. Empirical Finance LLC lifted its holdings in CarMax by 5.0% in the first quarter. Empirical Finance LLC now owns 5,697 shares of the company's stock valued at $444,000 after acquiring an additional 271 shares during the period. Finally, Blue Trust Inc. lifted its holdings in CarMax by 49.2% in the first quarter. Blue Trust Inc. now owns 898 shares of the company's stock valued at $70,000 after acquiring an additional 296 shares during the period.

CarMax Price Performance

KMX traded down $0.31 on Friday, hitting $54.94. 1,738,068 shares of the company's stock traded hands, compared to its average volume of 3,028,973. The company's 50 day simple moving average is $64.06 and its 200-day simple moving average is $70.66. The firm has a market cap of $8.24 billion, a price-to-earnings ratio of 15.18, a P/E/G ratio of 0.89 and a beta of 1.36. CarMax, Inc. has a one year low of $54.53 and a one year high of $91.25. The company has a current ratio of 2.39, a quick ratio of 0.80 and a debt-to-equity ratio of 2.86.

CarMax (NYSE:KMX - Get Free Report) last issued its earnings results on Friday, June 20th. The company reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.18 by $0.20. The company had revenue of $7.55 billion for the quarter, compared to the consensus estimate of $7.58 billion. CarMax had a return on equity of 9.11% and a net margin of 2.09%. The firm's quarterly revenue was up 6.1% on a year-over-year basis. During the same quarter last year, the company earned $0.97 EPS. As a group, research analysts anticipate that CarMax, Inc. will post 3.23 EPS for the current year.

Insider Transactions at CarMax

In related news, EVP Jon G. Daniels sold 1,540 shares of CarMax stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $70.64, for a total transaction of $108,785.60. Following the sale, the executive vice president owned 2,779 shares of the company's stock, valued at approximately $196,308.56. This trade represents a 35.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 1.70% of the company's stock.

Wall Street Analysts Forecast Growth

KMX has been the topic of several recent research reports. Morgan Stanley initiated coverage on CarMax in a research note on Tuesday, July 1st. They issued an "overweight" rating and a $80.00 price objective on the stock. Royal Bank Of Canada raised their price objective on CarMax from $80.00 to $81.00 and gave the stock an "outperform" rating in a research note on Monday, June 23rd. Mizuho decreased their price objective on CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a research note on Thursday, July 3rd. Wall Street Zen raised CarMax from a "sell" rating to a "hold" rating in a research note on Wednesday, May 7th. Finally, JPMorgan Chase & Co. raised CarMax from an "underweight" rating to a "neutral" rating and decreased their price objective for the stock from $65.00 to $58.00 in a research note on Wednesday. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating, nine have given a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $83.08.

CarMax Company Profile

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.