Engineers Gate Manager LP Makes New $3.53 Million Investment in CarMax, Inc. $KMX

Key Points

• Engineers Gate Manager LP bought 66,766 CarMax shares worth approximately $3.53 million during the second quarter. Several other institutional investors also increased their positions or initiated new stakes.
• CarMax reported quarterly earnings of $1.31 per share, beating estimates of $0.96, while revenue reached $8.01 billion and rose 6.2% year over year.
• CarMax shares opened at $61.47, near their 52-week high of $65.28. Despite recent insider purchases, analysts maintain a consensus “Hold” rating with an average price target of $51.00.

Engineers Gate Manager LP purchased a new stake in CarMax, Inc. (NYSE:KMX - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 66,766 shares of the company's stock, valued at approximately $3,531,000.

Other hedge funds have also modified their holdings of the company. Baird Financial Group Inc. increased its stake in shares of CarMax by 4.5% during the 2nd quarter. Baird Financial Group Inc. now owns 3,207,134 shares of the company's stock worth $169,625,000 after purchasing an additional 138,682 shares in the last quarter. Nykredit A S purchased a new stake in CarMax in the 2nd quarter valued at approximately $256,000. Corient Private Wealth LP grew its holdings in CarMax by 19.2% during the 2nd quarter. Corient Private Wealth LP now owns 67,136 shares of the company's stock valued at $3,551,000 after buying an additional 10,811 shares during the last quarter. Amundi grew its holdings in CarMax by 38.4% during the 2nd quarter. Amundi now owns 41,425 shares of the company's stock valued at $2,191,000 after buying an additional 11,484 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in CarMax during the second quarter worth $1,550,000.

CarMax Stock Performance

CarMax stock opened at $61.47 on Monday. The firm has a market capitalization of $8.72 billion, a P/E ratio of 40.18, a PEG ratio of 2.81 and a beta of 1.17. The stock has a fifty day moving average price of $58.70 and a 200 day moving average price of $48.86. CarMax, Inc. has a 52 week low of $30.26 and a 52 week high of $65.28. The company has a current ratio of 2.70, a quick ratio of 0.82 and a debt-to-equity ratio of 2.87.

CarMax (NYSE:KMX - Get Free Report) last released its 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. The firm had revenue of $8.01 billion for the quarter, compared to the consensus estimate of $7.42 billion. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The firm's revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period in the prior year, the business posted $1.38 earnings per share. Equities research analysts anticipate that CarMax, Inc. will post 2.73 earnings per share for the current year.

Insider Transactions at CarMax

In related news, Director Peter J. Bensen purchased 2,500 shares of the firm's stock in a transaction on Monday, June 22nd. The shares were bought at an average price of $52.20 per share, for a total transaction of $130,500.00. Following the acquisition, the director directly owned 24,796 shares in the company, valued at $1,294,351.20. This trade represents a 11.21% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available at this link. Also, CEO Keith Barr bought 9,400 shares of CarMax stock in a transaction that occurred on Monday, June 22nd. The stock was purchased at an average price of $53.01 per share, for a total transaction of $498,294.00. Following the acquisition, the chief executive officer directly owned 33,375 shares of the company's stock, valued at $1,769,208.75. The trade was a 39.21% increase in their position. The SEC filing for this purchase provides additional information. Insiders have purchased a total of 13,900 shares of company stock worth $735,574 in the last three months. Company insiders own 1.01% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on KMX. Wall Street Zen raised CarMax from a "sell" rating to a "hold" rating in a report on Saturday, June 13th. Truist Financial lifted their price objective on CarMax from $47.00 to $50.00 and gave the stock a "hold" rating in a research report on Thursday, June 18th. Bank of America lifted their price objective on CarMax from $40.00 to $45.00 and gave the stock an "underperform" rating in a research report on Wednesday, June 17th. UBS Group set a $60.00 target price on shares of CarMax in a report on Wednesday, July 29th. Finally, Royal Bank Of Canada raised their price target on shares of CarMax from $41.00 to $45.00 and gave the stock a "sector perform" rating in a research note on Thursday, June 18th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, fourteen have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, CarMax currently has a consensus rating of "Hold" and a consensus price target of $51.00.

CarMax Company Profile

CarMax, Inc is a specialty retailer of used vehicles and one of the largest automotive retailers in the United States. The company sells a broad selection of used cars, trucks and sport utility vehicles through its retail locations and online platform. CarMax also purchases vehicles from consumers and other sources, providing customers with a streamlined alternative to traditional private-party sales.

In addition to retail sales, CarMax operates wholesale vehicle auctions for vehicles that do not meet its retail standards or business requirements.

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