Check Capital Management Inc. CA Sells 10,708 Shares of CarMax, Inc. $KMX

Key Points

• Check Capital Management Inc. decreased its stake in CarMax, Inc. by 1.8%, selling 10,708 shares, and now holds approximately 598,979 shares, valued at about $40.26 million.
• CarMax reported a quarterly earnings per share of $0.64, missing analysts' expectations of $1.03, with revenue of $6.59 billion, down 6% year-over-year.
• Recent analyst reports have resulted in lowered price targets for CarMax, including JPMorgan's reduction from $65.00 to $50.00, indicating a cautious outlook on the stock.

Check Capital Management Inc. CA reduced its stake in CarMax, Inc. (NYSE:KMX - Free Report) by 1.8% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 598,979 shares of the company's stock after selling 10,708 shares during the period. CarMax makes up about 1.4% of Check Capital Management Inc. CA's holdings, making the stock its 10th largest holding. Check Capital Management Inc. CA owned about 0.40% of CarMax worth $40,257,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also modified their holdings of the company. Fuller & Thaler Asset Management Inc. raised its stake in CarMax by 626.1% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 903,024 shares of the company's stock valued at $70,364,000 after buying an additional 778,652 shares in the last quarter. Nuveen LLC acquired a new stake in shares of CarMax during the first quarter worth about $33,872,000. Philadelphia Financial Management of San Francisco LLC acquired a new stake in shares of CarMax during the first quarter worth about $16,370,000. Wellington Management Group LLP increased its position in shares of CarMax by 34.2% during the first quarter. Wellington Management Group LLP now owns 815,461 shares of the company's stock worth $63,541,000 after purchasing an additional 207,665 shares in the last quarter. Finally, Baird Financial Group Inc. increased its position in shares of CarMax by 7.1% during the first quarter. Baird Financial Group Inc. now owns 3,093,632 shares of the company's stock worth $241,056,000 after purchasing an additional 206,106 shares in the last quarter.

CarMax Price Performance

Shares of KMX opened at $43.09 on Friday. CarMax, Inc. has a twelve month low of $42.75 and a twelve month high of $91.25. The stock's 50 day moving average is $55.65 and its two-hundred day moving average is $62.91. The firm has a market capitalization of $6.33 billion, a PE ratio of 12.64, a P/E/G ratio of 0.82 and a beta of 1.27. The company has a current ratio of 2.46, a quick ratio of 1.06 and a debt-to-equity ratio of 2.87.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings data on Thursday, September 25th. The company reported $0.64 earnings per share for the quarter, missing analysts' consensus estimates of $1.03 by ($0.39). CarMax had a net margin of 1.98% and a return on equity of 8.51%. The business had revenue of $6.59 billion during the quarter, compared to analysts' expectations of $7.07 billion. During the same period in the prior year, the firm posted $0.85 EPS. CarMax's revenue for the quarter was down 6.0% compared to the same quarter last year. Research analysts anticipate that CarMax, Inc. will post 3.23 earnings per share for the current year.

Analysts Set New Price Targets

A number of research firms recently issued reports on KMX. JPMorgan Chase & Co. lowered their price target on CarMax from $65.00 to $50.00 and set a "neutral" rating on the stock in a report on Friday, September 26th. Zacks Research lowered CarMax from a "hold" rating to a "strong sell" rating in a report on Thursday, October 2nd. Evercore ISI reissued an "in-line" rating and set a $52.00 price target (down previously from $80.00) on shares of CarMax in a report on Friday, September 26th. Seaport Res Ptn lowered CarMax from a "strong-buy" rating to a "hold" rating in a report on Sunday, September 28th. Finally, Stephens lowered CarMax from an "overweight" rating to an "equal weight" rating and lowered their price target for the stock from $53.00 to $42.00 in a report on Tuesday, October 7th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, eight have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, CarMax presently has a consensus rating of "Hold" and an average target price of $54.42.

About CarMax

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.

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