CarMax, Inc. (NYSE:KMX) Stake Raised by Citigroup Inc.

Key Points

• Citigroup Inc. increased its holdings in CarMax, Inc. by 12% in Q1, now owning 618,273 shares worth approximately $48.18 million.
• CarMax reported a quarterly EPS of $1.38, exceeding the consensus estimate by $0.20, with a year-over-year revenue increase of 6.1% to $7.55 billion.
• Analysts have a consensus target price of $83.08 for CarMax, with many maintaining positive ratings despite recent stock fluctuations.

Citigroup Inc. lifted its position in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 12.0% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 618,273 shares of the company's stock after acquiring an additional 66,308 shares during the period. Citigroup Inc. owned about 0.40% of CarMax worth $48,176,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in KMX. Kovitz Investment Group Partners LLC raised its position in shares of CarMax by 348.0% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 6,595,067 shares of the company's stock valued at $539,213,000 after acquiring an additional 5,122,850 shares in the last quarter. AQR Capital Management LLC raised its position in shares of CarMax by 82.9% during the 4th quarter. AQR Capital Management LLC now owns 1,400,012 shares of the company's stock valued at $114,465,000 after acquiring an additional 634,390 shares in the last quarter. GAMMA Investing LLC raised its position in shares of CarMax by 8,675.6% during the 1st quarter. GAMMA Investing LLC now owns 515,830 shares of the company's stock valued at $40,193,000 after acquiring an additional 509,952 shares in the last quarter. ThornTree Capital Partners LP acquired a new stake in shares of CarMax during the 4th quarter valued at approximately $35,612,000. Finally, Raymond James Financial Inc. acquired a new stake in shares of CarMax during the 4th quarter valued at approximately $31,061,000.

Insider Activity at CarMax

In other news, EVP Jon G. Daniels sold 1,540 shares of the company's stock in a transaction 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 completion of the sale, the executive vice president directly owned 2,779 shares of the company's stock, valued at $196,308.56. This represents a 35.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 1.70% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on KMX. Royal Bank Of Canada upped 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 target on CarMax from $80.00 to $78.00 and set a "neutral" rating for the company in a research note on Thursday, July 3rd. Morgan Stanley initiated coverage on CarMax in a research note on Tuesday, July 1st. They issued an "overweight" rating and a $80.00 price target for the company. JPMorgan Chase & Co. raised CarMax from an "underweight" rating to a "neutral" rating and decreased their price target for the stock from $65.00 to $58.00 in a research note on Wednesday, August 6th. Finally, Wall Street Zen raised CarMax from a "sell" rating to a "hold" rating in a research note on Wednesday, May 7th. One research analyst has rated the stock with a sell rating, four have issued a hold rating, nine have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $82.75.

CarMax Price Performance

Shares of CarMax stock traded down $0.46 during trading on Thursday, hitting $58.16. The stock had a trading volume of 2,099,553 shares, compared to its average volume of 2,949,325. CarMax, Inc. has a fifty-two week low of $54.53 and a fifty-two week high of $91.25. The firm has a market cap of $8.73 billion, a P/E ratio of 16.07, a PEG ratio of 0.92 and a beta of 1.36. The company has a debt-to-equity ratio of 2.86, a current ratio of 2.39 and a quick ratio of 0.80. The business has a fifty day moving average of $63.55 and a two-hundred day moving average of $70.29.

CarMax (NYSE:KMX - Get Free Report) last announced its earnings results on Friday, June 20th. The company reported $1.38 EPS for the quarter, beating 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 business had revenue of $7.55 billion during the quarter, compared to the consensus estimate of $7.58 billion. During the same period in the prior year, the business posted $0.97 earnings per share. CarMax's revenue was up 6.1% compared to the same quarter last year. On average, sell-side analysts expect that CarMax, Inc. will post 3.23 earnings per share for the current fiscal year.

CarMax 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.