Edgestream Partners L.P. Invests $4.75 Million in CarMax, Inc. $KMX

Key Points

• Edgestream Partners L.P. acquired 114,365 CarMax shares valued at approximately $4.75 million, representing 0.08% of the company. Several other funds also recently initiated or increased positions.
• CarMax reported quarterly earnings of $1.31 per share, exceeding estimates of $0.96, while revenue rose 6.2% year over year to $8.01 billion. The stock opened at $57.33, with a market capitalization of approximately $8.14 billion.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and a $51 target price, although Stephens upgraded the stock to “overweight.” CarMax insiders also purchased 13,900 shares worth about $735,574 over the past 90 days.

Edgestream Partners L.P. bought a new stake in shares of CarMax, Inc. (NYSE:KMX - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 114,365 shares of the company's stock, valued at approximately $4,755,000. Edgestream Partners L.P. owned 0.08% of CarMax at the end of the most recent quarter.

A number of other hedge funds have also recently made changes to their positions in the stock. Huntington National Bank lifted its holdings in CarMax by 62.4% during the 4th quarter. Huntington National Bank now owns 690 shares of the company's stock valued at $27,000 after buying an additional 265 shares in the last quarter. CYBER HORNET ETFs LLC purchased a new stake in CarMax in the 2nd quarter valued at about $28,000. MUFG Securities EMEA plc bought a new position in CarMax in the 2nd quarter worth about $30,000. Advisory Services Network LLC bought a new position in CarMax in the 3rd quarter worth about $32,000. Finally, Commonwealth Retirement Investments LLC bought a new position in CarMax in the 4th quarter worth about $33,000.

CarMax Trading Down 2.3%

NYSE:KMX opened at $57.33 on Friday. CarMax, Inc. has a one year low of $30.26 and a one year high of $62.56. The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.82 and a current ratio of 2.70. The firm has a market cap of $8.14 billion, a P/E ratio of 37.47, a P/E/G ratio of 2.72 and a beta of 1.17. The firm has a 50-day simple moving average of $51.74 and a 200-day simple moving average of $45.73.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share 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 firm had revenue of $8.01 billion during the quarter, compared to analysts' expectations of $7.42 billion. During the same quarter in the prior year, the company earned $1.38 EPS. The company's revenue was up 6.2% compared to the same quarter last year. Equities analysts anticipate that CarMax, Inc. will post 2.7 EPS for the current fiscal year.

Analyst Ratings Changes

Several analysts have recently weighed in on KMX shares. Weiss Ratings raised shares of CarMax from a "sell (d)" rating to a "sell (d+)" rating in a research note on Monday, July 20th. Truist Financial increased their price objective on CarMax from $47.00 to $50.00 and gave the stock a "hold" rating in a research note on Thursday, June 18th. Mizuho raised their price objective on CarMax from $38.00 to $43.00 and gave the stock a "neutral" rating in a report on Thursday, June 18th. UBS Group set a $60.00 price objective on CarMax in a report on Wednesday. Finally, Stephens raised CarMax from an "equal weight" rating to an "overweight" rating and set a $66.00 target price for the company in a research report on Thursday, June 18th. Two investment analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $51.00.

Insider Buying and Selling

In related news, Director Peter J. Bensen bought 2,500 shares of the company's stock in a transaction on Monday, June 22nd. The shares were acquired at an average price of $52.20 per share, with a total value of $130,500.00. Following the transaction, the director owned 24,796 shares of the company's stock, valued at $1,294,351.20. The trade was a 11.21% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Keith Barr purchased 9,400 shares of the business's stock in a transaction dated Monday, June 22nd. The stock was bought at an average price of $53.01 per share, for a total transaction of $498,294.00. Following the completion of the acquisition, the chief executive officer directly owned 33,375 shares in the company, valued at approximately $1,769,208.75. This trade represents a 39.21% increase in their position. The SEC filing for this purchase provides additional information. Insiders acquired 13,900 shares of company stock valued at $735,574 over the last 90 days. Corporate insiders own 1.01% of the company's stock.

About CarMax

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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