Farley Capital L.P. Takes Position in CarMax, Inc. $KMX

Key Points

• Farley Capital L.P. has acquired a new stake in CarMax, Inc., purchasing 20,257 shares valued at approximately $1.36 million, making it the 10th largest position in their portfolio.
• CarMax reported earnings of $0.64 per share for the recent quarter, missing the analysts' expectations of $1.03, with revenue down 6.0% year-over-year.
• A range of analysts have recently downgraded their ratings on CarMax, including Seaport Res Ptn downgrading it from "strong-buy" to "hold" and Robert W. Baird lowering their target price from $90 to $60.

Farley Capital L.P. acquired a new stake in shares of CarMax, Inc. (NYSE:KMX - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 20,257 shares of the company's stock, valued at approximately $1,361,000. CarMax comprises approximately 1.1% of Farley Capital L.P.'s investment portfolio, making the stock its 10th largest position.

A number of other large investors have also added to or reduced their stakes in the stock. Forum Financial Management LP lifted its holdings in shares of CarMax by 15.0% during the 2nd quarter. Forum Financial Management LP now owns 5,338 shares of the company's stock valued at $359,000 after buying an additional 697 shares during the period. Parcion Private Wealth LLC purchased a new stake in CarMax during the second quarter valued at $235,000. Brookstone Capital Management lifted its holdings in CarMax by 6.2% in the second quarter. Brookstone Capital Management now owns 4,324 shares of the company's stock valued at $291,000 after acquiring an additional 252 shares during the period. D.A. Davidson & CO. boosted its position in CarMax by 5.4% in the second quarter. D.A. Davidson & CO. now owns 12,866 shares of the company's stock worth $865,000 after purchasing an additional 663 shares during the last quarter. Finally, Greenup Street Wealth Management LLC grew its stake in shares of CarMax by 2.0% during the 2nd quarter. Greenup Street Wealth Management LLC now owns 31,488 shares of the company's stock valued at $2,116,000 after purchasing an additional 631 shares during the period.

CarMax Stock Performance

KMX stock opened at $43.79 on Thursday. CarMax, Inc. has a one year low of $42.34 and a one year high of $91.25. The firm has a market cap of $6.43 billion, a price-to-earnings ratio of 12.84, a PEG ratio of 0.85 and a beta of 1.27. The company has a debt-to-equity ratio of 2.87, a quick ratio of 1.06 and a current ratio of 2.46. The firm has a 50-day simple moving average of $53.68 and a two-hundred day simple moving average of $61.13.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings data on Thursday, September 25th. The company reported $0.64 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.03 by ($0.39). CarMax had a return on equity of 8.51% and a net margin of 1.98%.The firm had revenue of $6.59 billion during the quarter, compared to analysts' expectations of $7.07 billion. During the same period in the previous year, the firm earned $0.85 EPS. The firm's quarterly revenue was down 6.0% on a year-over-year basis. On average, equities analysts forecast that CarMax, Inc. will post 3.23 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

KMX has been the subject of a number of research reports. Seaport Res Ptn cut shares of CarMax from a "strong-buy" rating to a "hold" rating in a report on Sunday, September 28th. Needham & Company LLC reduced their price objective on CarMax from $92.00 to $60.00 and set a "buy" rating for the company in a research note on Friday, September 26th. Oppenheimer reiterated a "market perform" rating on shares of CarMax in a research report on Friday, September 26th. Wall Street Zen downgraded CarMax from a "hold" rating to a "sell" rating in a research note on Friday, October 3rd. Finally, Robert W. Baird lowered their target price on shares of CarMax from $90.00 to $60.00 and set an "outperform" rating on the stock in a research note on Friday, September 26th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, eight have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $51.75.

CarMax Company 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.

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