Landscape Capital Management L.L.C. Purchases New Position in CarMax, Inc. $KMX

Key Points

• Landscape Capital Management acquired 154,677 CarMax shares worth approximately $8.2 million, representing 0.11% of the company and about 0.5% of the fund’s portfolio. Several other institutional investors also initiated positions in the second quarter.
• CarMax reported quarterly earnings of $1.31 per share, exceeding the $0.96 consensus estimate, while revenue reached $8.01 billion, up 6.2% year over year. Shares opened at $62.14, near their 12-month high of $63.00.
• Insiders purchased 13,900 shares worth approximately $735,574 in the latest quarter, while analyst sentiment remains cautious: CarMax has a consensus “Hold” rating and an average price target of $51.00.

Landscape Capital Management L.L.C. acquired a new stake in CarMax, Inc. (NYSE:KMX - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 154,677 shares of the company's stock, valued at approximately $8,181,000. CarMax makes up about 0.5% of Landscape Capital Management L.L.C.'s portfolio, making the stock its 23rd largest position. Landscape Capital Management L.L.C. owned 0.11% of CarMax as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also made changes to their positions in KMX. Rakuten Securities Inc. purchased a new stake in shares of CarMax in the 2nd quarter valued at about $90,000. Ieq Capital LLC purchased a new position in CarMax during the 2nd quarter worth approximately $16,430,000. Allworth Financial LP acquired a new position in CarMax during the second quarter worth approximately $522,000. B. Metzler seel. Sohn & Co. AG acquired a new position in CarMax during the second quarter worth approximately $1,909,000. Finally, Vise Technologies Inc. purchased a new stake in CarMax in the second quarter valued at approximately $280,000.

CarMax Trading Up 1.8%

Shares of KMX stock opened at $62.14 on Friday. CarMax, Inc. has a twelve month low of $30.26 and a twelve month high of $63.00. The company has a current ratio of 2.70, a quick ratio of 0.82 and a debt-to-equity ratio of 2.87. The business's 50 day moving average is $55.65 and its two-hundred day moving average is $46.98. The company has a market capitalization of $8.82 billion, a P/E ratio of 40.61, a price-to-earnings-growth ratio of 2.79 and a beta of 1.15.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly 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. The firm 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 company's revenue for the quarter was up 6.2% on a year-over-year basis. During the same period last year, the company earned $1.38 earnings per share. Equities analysts forecast that CarMax, Inc. will post 2.73 EPS for the current year.

Insider Transactions at CarMax

In other news, CEO Keith Barr purchased 9,400 shares of the business's stock in a transaction that occurred on Monday, June 22nd. The stock was purchased at an average cost of $53.01 per share, with a total value of $498,294.00. Following the completion of 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 position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Sona Chawla acquired 2,000 shares of CarMax stock in a transaction that occurred on Thursday, June 25th. The stock was purchased at an average price of $53.39 per share, with a total value of $106,780.00. Following the transaction, the director owned 21,702 shares of the company's stock, valued at $1,158,669.78. This trade represents a 10.15% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders bought 13,900 shares of company stock worth $735,574. Company insiders own 1.01% of the company's stock.

Analysts Set New Price Targets

Several research firms have recently weighed in on KMX. JPMorgan Chase & Co. raised CarMax from an "underweight" rating to a "neutral" rating and increased their price objective for the company from $38.00 to $60.00 in a report on Wednesday, July 29th. Barclays upgraded shares of CarMax from an "underweight" rating to an "equal weight" rating and upped their price target for the company from $37.00 to $61.00 in a research report on Tuesday, July 21st. Mizuho raised their price objective on shares of CarMax from $38.00 to $43.00 and gave the stock a "neutral" rating in a research report on Thursday, June 18th. Truist Financial lifted their price objective on shares of CarMax from $47.00 to $50.00 and gave the company a "hold" rating in a research note on Thursday, June 18th. Finally, Zacks Research raised shares of CarMax from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, fourteen have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, CarMax currently has a consensus rating of "Hold" and an average price target of $51.00.

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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