Gagnon Securities LLC Increases Stock Position in CarMax, Inc. $KMX

Key Points

• Gagnon Securities LLC increased its stake in CarMax, Inc. by 3.9% during the second quarter, owning 163,417 shares valued at approximately $10.98 million, which makes it the firm's 18th largest holding.
• Several analysts downgraded their price targets for CarMax, with Morgan Stanley reducing theirs from $80.00 to $56.00, and Truist Financial lowering it from $74.00 to $47.00.
• CarMax reported quarterly earnings of $0.64 per share, missing the consensus estimate of $1.03, alongside a 6% year-over-year decline in revenue, totaling $6.59 billion.

Gagnon Securities LLC raised its holdings in CarMax, Inc. (NYSE:KMX - Free Report) by 3.9% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 163,417 shares of the company's stock after purchasing an additional 6,067 shares during the period. CarMax accounts for approximately 2.2% of Gagnon Securities LLC's portfolio, making the stock its 18th largest holding. Gagnon Securities LLC owned approximately 0.11% of CarMax worth $10,983,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of the company. DAVENPORT & Co LLC lifted its stake in shares of CarMax by 5.6% during the second quarter. DAVENPORT & Co LLC now owns 1,346,265 shares of the company's stock valued at $90,213,000 after buying an additional 71,787 shares during the period. OLD National Bancorp IN lifted its stake in shares of CarMax by 1.9% during the second quarter. OLD National Bancorp IN now owns 197,045 shares of the company's stock valued at $13,243,000 after buying an additional 3,629 shares during the period. Franklin Street Advisors Inc. NC lifted its stake in shares of CarMax by 12.9% during the second quarter. Franklin Street Advisors Inc. NC now owns 4,418 shares of the company's stock valued at $297,000 after buying an additional 504 shares during the period. Ascent Group LLC lifted its stake in shares of CarMax by 10.4% during the second quarter. Ascent Group LLC now owns 56,384 shares of the company's stock valued at $3,790,000 after buying an additional 5,290 shares during the period. Finally, Hilltop National Bank purchased a new position in shares of CarMax during the second quarter valued at approximately $169,000.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the stock. Morgan Stanley reduced their price objective on shares of CarMax from $80.00 to $56.00 and set an "overweight" rating on the stock in a research note on Wednesday, October 1st. Truist Financial reduced their price objective on shares of CarMax from $74.00 to $47.00 and set a "hold" rating on the stock in a research note on Friday, September 26th. Royal Bank Of Canada reduced their price objective on shares of CarMax from $81.00 to $59.00 and set an "outperform" rating on the stock in a research note on Friday, September 26th. Evercore ISI reaffirmed an "in-line" rating and set a $52.00 price target (down previously from $80.00) on shares of CarMax in a research report on Friday, September 26th. Finally, BNP Paribas Exane dropped their price target on shares of CarMax from $52.00 to $35.00 and set an "underperform" rating for the company in a research report on Friday, September 26th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $54.42.

CarMax Price Performance

CarMax stock opened at $44.89 on Wednesday. CarMax, Inc. has a 52-week low of $42.75 and a 52-week high of $91.25. The firm has a fifty day moving average of $56.43 and a 200-day moving average of $63.54. The firm has a market capitalization of $6.59 billion, a P/E ratio of 13.16, a PEG ratio of 0.88 and a beta of 1.27. The company has a quick ratio of 1.06, a current ratio of 2.46 and a debt-to-equity ratio of 2.87.

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

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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