Ieq Capital LLC Makes New Investment in CarMax, Inc. $KMX

Key Points

• Ieq Capital LLC purchased 310,642 CarMax shares during the second quarter, valued at approximately $16.43 million and representing 0.22% of the company.
• CarMax reported quarterly EPS of $1.31, beating estimates of $0.96, while revenue reached $8.01 billion, up 6.2% year over year.
• Despite recent analyst upgrades and insider purchases, Wall Street’s overall view remains cautious: CarMax has an average “Hold” rating and a $51 price target, below the stock’s reported $62.14 price.

Ieq Capital LLC bought a new stake in CarMax, Inc. (NYSE:KMX - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund bought 310,642 shares of the company's stock, valued at approximately $16,430,000. Ieq Capital LLC owned 0.22% of CarMax as of its most recent SEC filing.

Several other large investors have also modified their holdings of the business. Bessemer Group Inc. lifted its position in CarMax by 28.1% in the first quarter. Bessemer Group Inc. now owns 156,121 shares of the company's stock valued at $6,491,000 after buying an additional 34,211 shares during the last quarter. Bank of America Corp DE boosted its stake in CarMax by 61.7% during the first quarter. Bank of America Corp DE now owns 1,687,359 shares of the company's stock worth $70,160,000 after buying an additional 643,834 shares during the period. Convergence Investment Partners LLC acquired a new stake in shares of CarMax during the first quarter valued at about $1,688,000. BML Capital Management LLC acquired a new stake in shares of CarMax during the fourth quarter valued at about $5,989,000. Finally, Louisiana State Employees Retirement System acquired a new stake in shares of CarMax during the first quarter valued at about $2,615,000.

CarMax Price Performance

KMX stock opened at $62.14 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. The firm has a market capitalization of $8.82 billion, a P/E ratio of 40.61, a P/E/G ratio of 2.84 and a beta of 1.15. The business's 50-day moving average is $55.65 and its two-hundred day moving average is $46.98. CarMax, Inc. has a 1 year low of $30.26 and a 1 year high of $63.00.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings data 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. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The business had revenue of $8.01 billion during the quarter, compared to analysts' expectations of $7.42 billion. During the same quarter last year, the business posted $1.38 EPS. The business's quarterly revenue was up 6.2% compared to the same quarter last year. Analysts anticipate that CarMax, Inc. will post 2.73 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on KMX shares. Barclays upgraded shares of CarMax from an "underweight" rating to an "equal weight" rating and upped their price objective for the stock from $37.00 to $61.00 in a report on Tuesday, July 21st. Royal Bank Of Canada lifted their target price on shares of CarMax from $41.00 to $45.00 and gave the company a "sector perform" rating in a report on Thursday, June 18th. Truist Financial boosted their target price on CarMax from $47.00 to $50.00 and gave the company a "hold" rating in a research report on Thursday, June 18th. Zacks Research upgraded CarMax from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 11th. Finally, JPMorgan Chase & Co. upgraded CarMax from an "underweight" rating to a "neutral" rating and raised their price target for the stock from $38.00 to $60.00 in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, fourteen have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, CarMax currently has an average rating of "Hold" and an average target price of $51.00.

Insider Activity at CarMax

In other news, Director Sona Chawla purchased 2,000 shares of the stock in a transaction on Thursday, June 25th. The stock was bought at an average price of $53.39 per share, for a total transaction of $106,780.00. Following the acquisition, the director directly owned 21,702 shares of the company's stock, valued at approximately $1,158,669.78. The trade was a 10.15% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Peter J. Bensen acquired 2,500 shares of the company's stock in a transaction on Monday, June 22nd. The stock was purchased at an average cost of $52.20 per share, for a total transaction of $130,500.00. Following the completion of the transaction, the director owned 24,796 shares in the company, valued at approximately $1,294,351.20. The trade was a 11.21% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought a total of 13,900 shares of company stock valued at $735,574 over the last 90 days. 1.01% of the stock is owned by corporate insiders.

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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