Kentucky Retirement Systems Acquires New Stake in CarMax, Inc. $KMX

Key Points

• Kentucky Retirement Systems acquired 18,440 CarMax shares in the first quarter, valued at approximately $767,000. Several other institutional investors also initiated or increased positions.
• CarMax reported quarterly EPS of $1.31, beating the $0.96 consensus estimate, while revenue reached $8.01 billion and rose 6.2% year over year.
• Despite the earnings beat and recent insider buying, analysts maintain a broadly cautious view: the stock carries a consensus “Reduce” rating and a $51 target price, below its reported $57.33 market price.

Kentucky Retirement Systems acquired a new stake in shares of CarMax, Inc. (NYSE:KMX - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 18,440 shares of the company's stock, valued at approximately $767,000.

A number of other large investors have also bought and sold shares of the company. CYBER HORNET ETFs LLC purchased a new position in shares of CarMax during the 2nd quarter valued at $28,000. MUFG Securities EMEA plc bought a new position in shares of CarMax during the 2nd quarter worth $30,000. Huntington National Bank increased its holdings in CarMax by 62.4% in the 4th quarter. Huntington National Bank now owns 690 shares of the company's stock worth $27,000 after acquiring an additional 265 shares during the last quarter. Advisory Services Network LLC purchased a new stake in CarMax in the 3rd quarter worth about $32,000. Finally, Commonwealth Retirement Investments LLC bought a new stake in CarMax in the 4th quarter valued at about $33,000.

CarMax Stock Performance

NYSE:KMX opened at $57.33 on Friday. The business's fifty day moving average is $51.74 and its 200 day moving average is $45.73. The firm has a market cap of $8.14 billion, a price-to-earnings ratio of 37.47, a PEG ratio of 2.72 and a beta of 1.17. The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.82 and a current ratio of 2.70. CarMax, Inc. has a 52-week low of $30.26 and a 52-week high of $62.56.

CarMax (NYSE:KMX - Get Free Report) last issued its earnings results on Wednesday, June 17th. The company reported $1.31 EPS for the quarter, topping the consensus estimate of $0.96 by $0.35. The business had revenue of $8.01 billion during the quarter, compared to the consensus estimate of $7.42 billion. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The firm's revenue was up 6.2% compared to the same quarter last year. During the same quarter last year, the company earned $1.38 EPS. Research analysts predict that CarMax, Inc. will post 2.7 EPS for the current year.

Insider Activity

In other news, Director Peter J. Bensen purchased 2,500 shares of the stock in a transaction dated Monday, June 22nd. The shares were purchased at an average cost of $52.20 per share, with a total value of $130,500.00. Following the completion of the acquisition, 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 transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Sona Chawla purchased 2,000 shares of the stock in a transaction dated Thursday, June 25th. The stock was purchased at an average cost of $53.39 per share, for a total transaction of $106,780.00. Following the completion of the acquisition, the director owned 21,702 shares of the company's stock, valued at approximately $1,158,669.78. This represents a 10.15% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased a total of 13,900 shares of company stock worth $735,574 over the last ninety days. Company insiders own 1.01% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have commented on KMX. Evercore set a $45.00 price objective on shares of CarMax in a report on Friday, April 10th. Argus upgraded shares of CarMax to a "hold" rating in a research note on Thursday, April 16th. Bank of America boosted their price target on shares of CarMax from $40.00 to $45.00 and gave the company an "underperform" rating in a research report on Wednesday, June 17th. UBS Group set a $60.00 price target on shares of CarMax in a research report on Wednesday. Finally, Benchmark restated a "hold" rating on shares of CarMax in a research note on Thursday, June 18th. Two investment analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and a consensus target price of $51.00.

CarMax Company Profile

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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