Connor Clark & Lunn Investment Management Ltd. Sells 69,544 Shares of CarMax, Inc. (NYSE:KMX)

Key Points

• Connor Clark & Lunn Investment Management Ltd. reduced its holdings in CarMax by 16.1% during the first quarter, owning approximately 0.24% of the company after selling 69,544 shares.
• Multiple hedge funds have shown interest in CarMax, with Kovitz Investment Group Partners increasing its position by 348.0% during the fourth quarter.
• CarMax reported an EPS of $1.38 for the last quarter, exceeding analysts' expectations, with a revenue of $7.55 billion, a 6.1% growth year-over-year.

Connor Clark & Lunn Investment Management Ltd. lessened its holdings in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 16.1% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 361,531 shares of the company's stock after selling 69,544 shares during the quarter. Connor Clark & Lunn Investment Management Ltd. owned approximately 0.24% of CarMax worth $28,170,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors also recently made changes to their positions in KMX. Kovitz Investment Group Partners LLC grew its stake in CarMax by 348.0% in the fourth quarter. Kovitz Investment Group Partners LLC now owns 6,595,067 shares of the company's stock worth $539,213,000 after purchasing an additional 5,122,850 shares during the period. AQR Capital Management LLC grew its stake in shares of CarMax by 82.9% in the fourth quarter. AQR Capital Management LLC now owns 1,400,012 shares of the company's stock worth $114,465,000 after acquiring an additional 634,390 shares during the last quarter. GAMMA Investing LLC grew its stake in shares of CarMax by 8,675.6% in the first quarter. GAMMA Investing LLC now owns 515,830 shares of the company's stock worth $40,193,000 after acquiring an additional 509,952 shares during the last quarter. ThornTree Capital Partners LP purchased a new stake in shares of CarMax in the fourth quarter worth $35,612,000. Finally, Raymond James Financial Inc. purchased a new stake in shares of CarMax in the fourth quarter worth $31,061,000.

CarMax Stock Performance

KMX stock traded up $0.70 during trading on Tuesday, reaching $56.64. The stock had a trading volume of 2,284,195 shares, compared to its average volume of 3,005,976. The stock's 50 day moving average is $63.70 and its two-hundred day moving average is $70.38. 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, Inc. has a 52 week low of $54.53 and a 52 week high of $91.25. The firm has a market cap of $8.50 billion, a PE ratio of 15.65, a PEG ratio of 0.91 and a beta of 1.36.

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

Insider Activity at CarMax

In other news, EVP Jon G. Daniels sold 1,540 shares of the firm's stock in a transaction dated Wednesday, July 2nd. The stock was sold at an average price of $70.64, for a total value of $108,785.60. Following the transaction, the executive vice president owned 2,779 shares of the company's stock, valued at $196,308.56. This trade represents a 35.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.70% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on KMX shares. Evercore ISI cut their target price on CarMax from $82.00 to $80.00 and set an "outperform" rating on the stock in a research note on Tuesday. Benchmark started coverage on CarMax in a research note on Thursday, July 17th. They issued a "buy" rating and a $75.00 target price on the stock. JPMorgan Chase & Co. raised CarMax from an "underweight" rating to a "neutral" rating and cut their target price for the stock from $65.00 to $58.00 in a research note on Wednesday, August 6th. Wall Street Zen raised CarMax from a "sell" rating to a "hold" rating in a research report on Wednesday, May 7th. Finally, Wedbush reaffirmed an "outperform" rating and set a $90.00 price objective on shares of CarMax in a research report on Wednesday, June 18th. One investment analyst has rated the stock with a sell rating, four have issued a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, CarMax currently has an average rating of "Moderate Buy" and a consensus target price of $82.75.

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.