Hsbc Holdings PLC Purchases 89,961 Shares of CarMax, Inc. $KMX

Key Points

• HSBC Holdings PLC increased its CarMax stake by 335.1% in the first quarter, buying 89,961 additional shares and bringing its total to 116,809 shares worth about $4.83 million.
• CarMax posted stronger-than-expected quarterly results, with earnings of $1.31 per share versus the $0.96 consensus estimate and revenue of $8.01 billion, up 6.2% year over year.
• Insider buying was notable, as Director Peter J. Bensen and CEO Keith Barr both purchased shares in June, while analysts currently have a cautious outlook with a consensus rating of “Reduce.”

Hsbc Holdings PLC grew its position in CarMax, Inc. (NYSE:KMX - Free Report) by 335.1% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 116,809 shares of the company's stock after buying an additional 89,961 shares during the period. Hsbc Holdings PLC owned 0.08% of CarMax worth $4,830,000 at the end of the most recent reporting period.

Several other large investors have also made changes to their positions in KMX. Jones Financial Companies Lllp raised its holdings in CarMax by 3.1% during the 1st quarter. Jones Financial Companies Lllp now owns 5,372 shares of the company's stock worth $419,000 after purchasing an additional 161 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of CarMax by 0.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,389 shares of the company's stock valued at $2,446,000 after purchasing an additional 173 shares during the last quarter. Blue Trust Inc. grew its position in shares of CarMax by 20.0% during the 4th quarter. Blue Trust Inc. now owns 1,424 shares of the company's stock worth $55,000 after buying an additional 237 shares during the period. Huntington National Bank raised its stake in shares of CarMax by 62.4% during the fourth quarter. Huntington National Bank now owns 690 shares of the company's stock worth $27,000 after buying an additional 265 shares during the last quarter. Finally, Ossiam raised its stake in shares of CarMax by 19.5% during the second quarter. Ossiam now owns 1,713 shares of the company's stock worth $115,000 after buying an additional 280 shares during the last quarter.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on KMX shares. Robert W. Baird raised their price objective on shares of CarMax from $48.00 to $55.00 and gave the company an "outperform" rating in a research note on Thursday, June 18th. JPMorgan Chase & Co. increased their price target on CarMax from $37.00 to $38.00 and gave the company an "underweight" rating in a research note on Thursday, June 18th. Argus upgraded CarMax to a "hold" rating in a research report on Thursday, April 16th. Wall Street Zen raised CarMax from a "sell" rating to a "hold" rating in a research note on Saturday, June 13th. Finally, Benchmark reissued a "hold" rating on shares of CarMax in a research note on Thursday, June 18th. Two equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Reduce" and a consensus target price of $49.33.

CarMax Price Performance

Shares of KMX stock opened at $58.31 on Friday. The company has a quick ratio of 0.82, a current ratio of 2.70 and a debt-to-equity ratio of 2.87. CarMax, Inc. has a 12-month low of $30.26 and a 12-month high of $62.56. The firm has a fifty day moving average of $49.69 and a 200-day moving average of $45.18. The firm has a market capitalization of $8.27 billion, a price-to-earnings ratio of 38.11, a price-to-earnings-growth ratio of 1.88 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 for the quarter, topping the consensus estimate of $0.96 by $0.35. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The firm had revenue of $8.01 billion for the quarter, compared to analyst estimates of $7.42 billion. During the same period in the previous year, the company posted $1.38 earnings per share. The company's revenue for the quarter was up 6.2% on a year-over-year basis. On average, equities research analysts forecast that CarMax, Inc. will post 2.7 earnings per share for the current year.

Insider Activity

In related news, Director Peter J. Bensen purchased 2,500 shares of the business's stock in a transaction on Monday, June 22nd. The shares were purchased at an average price of $52.20 per share, with a total value of $130,500.00. Following the completion of the purchase, the director owned 24,796 shares in the company, valued at $1,294,351.20. This represents a 11.21% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Keith Barr purchased 9,400 shares of CarMax stock in a transaction dated Monday, June 22nd. The stock was bought at an average price of $53.01 per share, with a total value of $498,294.00. Following the acquisition, the chief executive officer directly owned 33,375 shares of the company's stock, valued at approximately $1,769,208.75. This trade represents a 39.21% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have acquired 13,900 shares of company stock worth $735,574 in the last 90 days. Corporate insiders own 1.01% of the company's stock.

About CarMax

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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