Kettle Hill Capital Management LLC Takes $3.51 Million Position in CarMax, Inc. $KMX

Key Points

• Kettle Hill Capital Management LLC acquired 45,040 shares of CarMax, Inc., valued at approximately $3.51 million, which represents about 1.0% of its total holdings.
• CarMax recently reported an earnings per share (EPS) of $1.38 for the quarter, surpassing analyst expectations of $1.18, while its revenue increased by 6.1% year-over-year.
• Several institutional investors have recently modified their stakes in CarMax, with Zions Bancorporation and Accent Capital Management each purchasing new positions valued at approximately $27,000 and $34,000, respectively.

Kettle Hill Capital Management LLC bought a new position in shares of CarMax, Inc. (NYSE:KMX - Free Report) during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund bought 45,040 shares of the company's stock, valued at approximately $3,510,000. CarMax makes up approximately 1.0% of Kettle Hill Capital Management LLC's portfolio, making the stock its 25th largest position.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Gotham Asset Management LLC boosted its stake in shares of CarMax by 34.8% in the first quarter. Gotham Asset Management LLC now owns 160,292 shares of the company's stock valued at $12,490,000 after buying an additional 41,385 shares during the period. DoubleLine ETF Adviser LP acquired a new stake in CarMax in the first quarter valued at $306,000. Concentric Capital Strategies LP bought a new stake in CarMax during the first quarter valued at $1,990,000. AQR Capital Management LLC boosted its position in shares of CarMax by 7.8% during the 1st quarter. AQR Capital Management LLC now owns 1,509,344 shares of the company's stock worth $115,887,000 after purchasing an additional 109,332 shares in the last quarter. Finally, Amundi boosted its stake in CarMax by 16.4% during the 1st quarter. Amundi now owns 420,114 shares of the company's stock valued at $32,122,000 after purchasing an additional 59,247 shares during the last quarter.

CarMax Stock Performance

KMX traded up $0.04 during mid-day trading on Tuesday, reaching $61.42. 2,210,954 shares of the company traded hands, compared to its average volume of 2,915,992. The company has a quick ratio of 0.80, a current ratio of 2.39 and a debt-to-equity ratio of 2.86. The stock has a market capitalization of $9.22 billion, a P/E ratio of 16.97, a P/E/G ratio of 0.99 and a beta of 1.35. CarMax, Inc. has a 52-week low of $54.53 and a 52-week high of $91.25. The company's fifty day moving average price is $61.18 and its 200-day moving average price is $66.78.

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

Insider Buying and Selling

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 shares were sold at an average price of $70.64, for a total value of $108,785.60. Following the completion of the transaction, 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 filing with the SEC, which is available at the SEC website. 1.70% of the stock is owned by company insiders.

Analyst Ratings Changes

Several brokerages have recently issued reports on KMX. Mizuho decreased their price target on shares of CarMax from $80.00 to $78.00 and set a "neutral" rating for the company in a research note on Thursday, July 3rd. Royal Bank Of Canada raised their price objective on CarMax from $80.00 to $81.00 and gave the company an "outperform" rating in a research note on Monday, June 23rd. Wedbush reiterated an "outperform" rating and issued a $84.00 price objective on shares of CarMax in a report on Tuesday, August 19th. Stephens reiterated an "overweight" rating and issued a $81.00 price objective on shares of CarMax in a report on Tuesday, August 19th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $92.00 price objective on shares of CarMax in a research report on Monday, June 23rd. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, CarMax presently has an average rating of "Moderate Buy" and a consensus price target of $81.50.

CarMax Company Profile

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.