Fifth Third Bancorp Buys 38,647 Shares of CarMax, Inc. $KMX

Key Points

• Fifth Third Bancorp sharply increased its CarMax stake in the first quarter, adding 38,647 shares and lifting its holdings by 1,196.9% to 41,876 shares worth about $1.74 million.
• CarMax reported stronger-than-expected quarterly results, posting EPS of $1.31 versus the $0.96 estimate and revenue of $8.01 billion versus $7.42 billion expected. Revenue also rose 6.2% from a year earlier.
• Insider buying and analyst sentiment have been mixed: CEO Keith Barr and Director Sona Chawla both bought shares, while analysts currently have an average rating of “Reduce” with a $49.33 price target.

Fifth Third Bancorp raised its stake in CarMax, Inc. (NYSE:KMX - Free Report) by 1,196.9% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 41,876 shares of the company's stock after buying an additional 38,647 shares during the period. Fifth Third Bancorp's holdings in CarMax were worth $1,741,000 at the end of the most recent quarter.

A number of other hedge funds have also recently made changes to their positions in the company. AQR Capital Management LLC grew its stake in shares of CarMax by 151.8% in the fourth quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company's stock worth $306,429,000 after purchasing an additional 4,780,903 shares during the last quarter. SRS Investment Management LLC boosted its position in shares of CarMax by 1,717.5% during the 4th quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company's stock worth $217,845,000 after purchasing an additional 5,327,603 shares in the last quarter. Norges Bank acquired a new stake in CarMax in the fourth quarter valued at approximately $159,232,000. Dimensional Fund Advisors LP grew its position in CarMax by 8.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 3,985,895 shares of the company's stock valued at $154,023,000 after purchasing an additional 300,694 shares during the period. Finally, Arrowstreet Capital Limited Partnership grew its holdings in shares of CarMax by 73.7% during the third quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company's stock valued at $158,074,000 after buying an additional 1,494,205 shares during the last quarter.

CarMax Stock Performance

CarMax stock opened at $57.47 on Thursday. CarMax, Inc. has a 1-year low of $30.26 and a 1-year high of $63.74. The company has a current ratio of 2.70, a quick ratio of 0.82 and a debt-to-equity ratio of 2.87. The firm has a 50-day moving average of $48.86 and a 200-day moving average of $44.95. The firm has a market cap of $8.16 billion, a P/E ratio of 37.56, a P/E/G ratio of 1.86 and a beta of 1.17.

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

Insider Transactions at CarMax

In other news, CEO Keith Barr bought 9,400 shares of the 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 purchase, the chief executive officer directly owned 33,375 shares in the company, valued at $1,769,208.75. This trade represents a 39.21% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Sona Chawla bought 2,000 shares of the company's stock in a transaction dated Thursday, June 25th. The shares were acquired at an average price of $53.39 per share, for a total transaction of $106,780.00. Following the acquisition, the director owned 21,702 shares in the company, valued at approximately $1,158,669.78. This represents a 10.15% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders bought 13,900 shares of company stock valued at $735,574. Corporate insiders own 1.01% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Weiss Ratings raised CarMax from a "sell (d)" rating to a "sell (d+)" rating in a research report on Monday. Barclays upgraded CarMax from an "underweight" rating to an "equal weight" rating and boosted their target price for the company from $37.00 to $61.00 in a research note on Tuesday. Bank of America raised their price objective on shares of CarMax from $40.00 to $45.00 and gave the stock an "underperform" rating in a report on Wednesday, June 17th. UBS Group upped their price target on CarMax from $42.00 to $57.00 and gave the company a "neutral" rating in a research report on Tuesday, June 23rd. Finally, Wall Street Zen upgraded CarMax from a "sell" rating to a "hold" rating in a research report on Saturday, June 13th. Two analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $49.33.

CarMax 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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