Hsbc Holdings PLC Sells 92,817 Shares of CarMax, Inc. $KMX

Key Points

• HSBC Holdings cut its CarMax stake by 79.5%, selling 92,817 shares and retaining 23,992 shares valued at approximately $1.26 million.
• CarMax exceeded quarterly expectations, reporting $1.31 in earnings per share and $8.01 billion in revenue, with revenue up 6.2% year over year.
• Analysts maintain a consensus “Hold” rating with a $51 target price, while CarMax insiders purchased 13,900 shares worth about $735,574 during the quarter.

Hsbc Holdings PLC decreased its holdings in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 79.5% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 23,992 shares of the company's stock after selling 92,817 shares during the quarter. Hsbc Holdings PLC's holdings in CarMax were worth $1,260,000 at the end of the most recent quarter.

Other institutional investors also recently modified their holdings of the company. SRS Investment Management LLC boosted its position in CarMax by 1,717.5% during the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company's stock valued at $217,845,000 after buying an additional 5,327,603 shares during the period. AQR Capital Management LLC boosted its holdings in CarMax by 151.8% during the 4th quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company's stock valued at $306,429,000 after acquiring an additional 4,780,903 shares during the period. Jupiter Topco LLC purchased a new stake in CarMax during the 2nd quarter valued at about $245,676,000. Primecap Management Co. CA bought a new position in CarMax during the 2nd quarter worth approximately $230,548,000. Finally, Norges Bank bought a new position in CarMax during the 4th quarter worth approximately $159,232,000.

CarMax Stock Performance

KMX stock opened at $61.47 on Friday. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82. CarMax, Inc. has a 1 year low of $30.26 and a 1 year high of $65.28. The company has a market cap of $8.72 billion, a P/E ratio of 40.18, a price-to-earnings-growth ratio of 2.81 and a beta of 1.17. The stock's fifty day moving average price is $58.70 and its 200-day moving average price is $48.82.

CarMax (NYSE:KMX - Get Free Report) last released its earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, beating 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 company had revenue of $8.01 billion for the quarter, compared to the consensus estimate of $7.42 billion. During the same period in the previous year, the business earned $1.38 earnings per share. CarMax's quarterly revenue was up 6.2% compared to the same quarter last year. On average, equities analysts forecast that CarMax, Inc. will post 2.73 earnings per share for the current year.

Analysts Set New Price Targets

A number of research firms have issued reports on KMX. Morgan Stanley boosted their price objective on shares of CarMax from $35.00 to $44.00 and gave the company an "equal weight" rating in a research report on Tuesday, June 23rd. Benchmark reissued a "hold" rating on shares of CarMax in a research note on Thursday, June 18th. Bank of America boosted their price target on CarMax from $40.00 to $45.00 and gave the company an "underperform" rating in a report on Wednesday, June 17th. Wall Street Zen raised CarMax from a "sell" rating to a "hold" rating in a research report on Saturday, June 13th. Finally, Stephens upgraded CarMax from an "equal weight" rating to an "overweight" rating and set a $66.00 price objective for the company in a report on Thursday, June 18th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, fourteen have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, CarMax presently has a consensus rating of "Hold" and a consensus target price of $51.00.

Insider Transactions at CarMax

In related news, CEO Keith Barr purchased 9,400 shares of CarMax stock in a transaction on Monday, June 22nd. The shares were bought at an average cost of $53.01 per share, for a total transaction of $498,294.00. Following the acquisition, the chief executive officer owned 33,375 shares in the company, valued at approximately $1,769,208.75. The trade was a 39.21% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Sona Chawla acquired 2,000 shares of the company's stock in a transaction on Thursday, June 25th. The shares were bought at an average cost of $53.39 per share, with a total value of $106,780.00. Following the acquisition, the director directly owned 21,702 shares in the company, valued at approximately $1,158,669.78. The trade was a 10.15% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have purchased 13,900 shares of company stock valued at $735,574. 1.01% of the stock is currently owned by corporate insiders.

CarMax Company Profile

CarMax, Inc is a specialty retailer of used vehicles and one of the largest automotive retailers in the United States. The company sells a broad selection of used cars, trucks and sport utility vehicles through its retail locations and online platform. CarMax also purchases vehicles from consumers and other sources, providing customers with a streamlined alternative to traditional private-party sales.

In addition to retail sales, CarMax operates wholesale vehicle auctions for vehicles that do not meet its retail standards or business requirements.

Want to see what other hedge funds are holding KMX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for CarMax, Inc. (NYSE:KMX - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.