Concentric Capital Strategies LP Takes $1.99 Million Position in CarMax, Inc. $KMX

Key Points

• Concentric Capital Strategies LP has invested approximately $1.99 million in CarMax, purchasing 25,538 shares during the first quarter.
• Several institutional investors have also increased their stakes in CarMax, indicating a growing institutional interest in the stock despite recent changes in analyst price targets.
• CarMax reported an EPS of $1.38 for the quarter, surpassing estimates by $0.20, while revenues increased by 6.1% year-over-year.

Concentric Capital Strategies LP bought a new stake in shares of CarMax, Inc. (NYSE:KMX - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 25,538 shares of the company's stock, valued at approximately $1,990,000.

Other large investors have also recently made changes to their positions in the company. Zions Bancorporation National Association UT bought a new position in shares of CarMax during the 1st quarter worth $27,000. Accent Capital Management LLC bought a new position in shares of CarMax during the 1st quarter worth $34,000. Strengthening Families & Communities LLC grew its stake in shares of CarMax by 93.1% during the 1st quarter. Strengthening Families & Communities LLC now owns 531 shares of the company's stock worth $39,000 after acquiring an additional 256 shares during the period. Ameriflex Group Inc. bought a new position in shares of CarMax during the 4th quarter worth $53,000. Finally, Quarry LP grew its stake in shares of CarMax by 50.5% during the 1st quarter. Quarry LP now owns 694 shares of the company's stock worth $54,000 after acquiring an additional 233 shares during the period.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on KMX. Needham & Company LLC reiterated a "buy" rating and set a $92.00 price target on shares of CarMax in a research note on Monday, June 23rd. JPMorgan Chase & Co. upgraded CarMax from an "underweight" rating to a "neutral" rating and cut their price target for the stock from $65.00 to $58.00 in a research note on Wednesday, August 6th. Morgan Stanley began coverage on CarMax in a research note on Tuesday, July 1st. They set an "overweight" rating and a $80.00 price target for the company. Mizuho cut 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. Finally, Wedbush reiterated an "outperform" rating and set a $84.00 price target on shares of CarMax in a research note on Tuesday, August 19th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $81.50.

CarMax Price Performance

NYSE KMX traded down $0.22 during trading hours on Tuesday, hitting $61.16. The company had a trading volume of 1,090,315 shares, compared to its average volume of 2,909,008. CarMax, Inc. has a 52 week low of $54.53 and a 52 week high of $91.25. The firm has a 50 day simple moving average of $61.18 and a 200 day simple moving average of $66.78. The company has a debt-to-equity ratio of 2.86, a quick ratio of 0.80 and a current ratio of 2.39. The firm has a market capitalization of $9.18 billion, a price-to-earnings ratio of 16.90, a PEG ratio of 0.99 and a beta of 1.35.

CarMax (NYSE:KMX - Get Free Report) last issued its earnings results 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 business had revenue of $7.55 billion during the quarter, compared to the consensus estimate of $7.58 billion. During the same quarter last year, the company earned $0.97 EPS. The firm's revenue was up 6.1% compared to the same quarter last year. Equities research analysts expect that CarMax, Inc. will post 3.23 earnings per share for the current year.

Insider Activity

In other news, EVP Jon G. Daniels sold 1,540 shares of CarMax stock in a transaction dated 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 owned 2,779 shares in the company, valued at approximately $196,308.56. This trade represents a 35.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 1.70% of the company's stock.

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.