Delta Global Management LP Acquires New Position in CarMax, Inc. $KMX

Key Points

• Delta Global Management LP initiated a new position in CarMax during the first quarter, buying 52,536 shares worth about $2.18 million.
• CarMax recently reported stronger-than-expected quarterly results, with EPS of $1.31 versus $0.96 expected and revenue of $8.01 billion, up 6.2% year over year.
• Insider buying was notable, as Director Peter J. Bensen and CEO Keith Barr both purchased shares in June, while several analysts recently raised price targets and mixed ratings leave the stock with an average "Reduce" rating.

Delta Global Management LP bought a new position in CarMax, Inc. (NYSE:KMX - Free Report) in the first quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 52,536 shares of the company's stock, valued at approximately $2,184,000.

Several other hedge funds and other institutional investors have also bought and sold shares of KMX. Huntington National Bank grew its position in CarMax by 62.4% during the fourth quarter. Huntington National Bank now owns 690 shares of the company's stock valued at $27,000 after acquiring an additional 265 shares during the last quarter. CYBER HORNET ETFs LLC bought a new stake in shares of CarMax in the 2nd quarter worth approximately $28,000. MUFG Securities EMEA plc bought a new stake in shares of CarMax in the 2nd quarter worth approximately $30,000. Advisory Services Network LLC bought a new stake in shares of CarMax in the 3rd quarter worth approximately $32,000. Finally, Commonwealth Retirement Investments LLC purchased a new stake in shares of CarMax in the 4th quarter valued at $33,000.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Royal Bank Of Canada increased their target price on shares of CarMax from $41.00 to $45.00 and gave the company a "sector perform" rating in a report on Thursday, June 18th. Robert W. Baird boosted their price target on shares of CarMax from $48.00 to $55.00 and gave the stock an "outperform" rating in a research note on Thursday, June 18th. Evercore set a $45.00 price target on shares of CarMax in a research report on Friday, April 10th. Argus raised CarMax to a "hold" rating in a research note on Thursday, April 16th. Finally, Stephens upgraded CarMax from an "equal weight" rating to an "overweight" rating and set a $66.00 price objective on the stock in a report on Thursday, June 18th. Two analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Reduce" and an average target price of $49.33.

CarMax Stock Performance

NYSE:KMX opened at $58.31 on Friday. The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.82 and a current ratio of 2.70. CarMax, Inc. has a fifty-two week low of $30.26 and a fifty-two week high of $62.56. The firm has a market cap of $8.27 billion, a PE ratio of 38.11, a price-to-earnings-growth ratio of 1.88 and a beta of 1.17. The business has a 50 day moving average price of $49.69 and a 200-day moving average price of $45.18.

CarMax (NYSE:KMX - Get Free Report) last issued its earnings results on Wednesday, June 17th. The company reported $1.31 EPS for the quarter, topping the consensus estimate of $0.96 by $0.35. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The company had revenue of $8.01 billion for the quarter, compared to the consensus estimate of $7.42 billion. During the same period in the previous year, the firm earned $1.38 earnings per share. The firm's revenue for the quarter was up 6.2% on a year-over-year basis. Equities research analysts predict that CarMax, Inc. will post 2.7 earnings per share for the current year.

Insider Buying and Selling at CarMax

In other news, Director Peter J. Bensen acquired 2,500 shares of the stock in a transaction dated Monday, June 22nd. The stock was purchased at an average cost of $52.20 per share, with a total value of $130,500.00. Following the completion of the purchase, the director owned 24,796 shares in the company, valued at approximately $1,294,351.20. The trade was a 11.21% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Keith Barr bought 9,400 shares of the company's stock in a transaction dated Monday, June 22nd. The shares were purchased at an average price of $53.01 per share, with a total value of $498,294.00. Following the completion of the acquisition, the chief executive officer owned 33,375 shares of the company's stock, valued at $1,769,208.75. This trade represents a 39.21% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought 13,900 shares of company stock valued at $735,574 in the last quarter. Company insiders own 1.01% of the company's stock.

CarMax Company Profile

CarMax NYSE: KMX is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company's inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax's retail locations or browse the company's online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.

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