Giverny Capital Inc. Sells 41,247 Shares of CarMax, Inc. $KMX

Key Points

• Giverny Capital Inc. has reduced its stake in CarMax, Inc. by 2.5%, selling 41,247 shares and now holding 1,641,622 shares, representing 4.7% of its investment portfolio.
• CarMax reported an earnings per share (EPS) of $1.38 for the last quarter, exceeding analyst expectations by $0.20, despite having revenue slightly below estimates at $7.55 billion.
• Analyst ratings on CarMax vary; while JPMorgan Chase has upgraded it to 'neutral,' Needham & Company maintains a 'buy' rating with a target price of $92.00, indicating positive market sentiment.

Giverny Capital Inc. lessened its stake in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 2.5% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,641,622 shares of the company's stock after selling 41,247 shares during the quarter. CarMax accounts for 4.7% of Giverny Capital Inc.'s investment portfolio, making the stock its 8th biggest position. Giverny Capital Inc. owned 1.08% of CarMax worth $127,915,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds also recently modified their holdings of the company. Zions Bancorporation National Association UT purchased a new position in CarMax in the 1st quarter worth approximately $27,000. Accent Capital Management LLC acquired a new position in shares of CarMax during the first quarter worth $34,000. Strengthening Families & Communities LLC boosted its stake in shares of CarMax by 93.1% in the first quarter. Strengthening Families & Communities LLC now owns 531 shares of the company's stock valued at $39,000 after purchasing an additional 256 shares during the period. Ameriflex Group Inc. acquired a new stake in CarMax during the 4th quarter valued at $53,000. Finally, Colonial Trust Co SC increased its stake in CarMax by 2,310.0% during the 4th quarter. Colonial Trust Co SC now owns 723 shares of the company's stock worth $59,000 after buying an additional 693 shares during the period.

Insider Activity

In related news, EVP Jon G. Daniels sold 1,540 shares of the business's stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $70.64, for a total transaction of $108,785.60. Following the sale, the executive vice president owned 2,779 shares of the company's stock, valued at $196,308.56. The trade was a 35.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.70% of the stock is owned by company insiders.

CarMax Stock Performance

Shares of NYSE KMX opened at $57.76 on Monday. CarMax, Inc. has a 12-month low of $54.53 and a 12-month high of $91.25. The company has a market cap of $8.67 billion, a PE ratio of 15.96, a P/E/G ratio of 0.94 and a beta of 1.36. The stock has a 50 day simple moving average of $63.25 and a 200-day simple moving average of $69.69. The company has a current ratio of 2.39, a quick ratio of 0.80 and a debt-to-equity ratio of 2.86.

CarMax (NYSE:KMX - Get Free Report) last announced its earnings results on Friday, June 20th. The company reported $1.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.18 by $0.20. The firm had revenue of $7.55 billion during the quarter, compared to analyst estimates of $7.58 billion. CarMax had a net margin of 2.09% and a return on equity of 9.11%. CarMax's revenue was up 6.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.97 EPS. On average, equities research analysts forecast that CarMax, Inc. will post 3.23 EPS for the current year.

Wall Street Analyst Weigh In

A number of brokerages recently commented on KMX. JPMorgan Chase & Co. raised CarMax from an "underweight" rating to a "neutral" rating and reduced their price target for the company from $65.00 to $58.00 in a report on Wednesday, August 6th. Evercore ISI decreased their price target on shares of CarMax from $82.00 to $80.00 and set an "outperform" rating for the company in a research report on Tuesday, August 12th. Wall Street Zen upgraded shares of CarMax from a "sell" rating to a "hold" rating in a research note on Wednesday, May 7th. Truist Financial increased their price objective on shares of CarMax from $72.00 to $74.00 and gave the company a "hold" rating in a research note on Monday, June 23rd. Finally, Needham & Company LLC reissued a "buy" rating and issued a $92.00 target price on shares of CarMax in a research report on Monday, June 23rd. One investment analyst has rated the stock with a sell rating, four have issued a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $82.75.

About CarMax

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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