Maverick Capital Ltd. Buys Shares of 79,042 CarMax, Inc. $KMX

Key Points

• Maverick Capital Ltd. has acquired a new stake in CarMax, purchasing 79,042 shares valued at approximately $6.16 million, representing about 0.05% ownership in the company.
• Several other institutional investors have also significantly increased their stakes in CarMax, with notable increases from Fuller & Thaler Asset Management (up 626.1%) and GAMMA Investing (up 8,675.6%) during the same timeframe.
• CarMax recently reported earnings per share of $1.38, surpassing expectations, and has an average target price of $81.50 among analysts, reflecting a general outlook of growth despite a 1.3% stock decline.

Maverick Capital Ltd. purchased a new stake in shares of CarMax, Inc. (NYSE:KMX - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund purchased 79,042 shares of the company's stock, valued at approximately $6,159,000. Maverick Capital Ltd. owned approximately 0.05% of CarMax as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of KMX. Fuller & Thaler Asset Management Inc. lifted its position in CarMax by 626.1% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 903,024 shares of the company's stock valued at $70,364,000 after buying an additional 778,652 shares in the last quarter. GAMMA Investing LLC lifted its position in CarMax by 8,675.6% during the first quarter. GAMMA Investing LLC now owns 515,830 shares of the company's stock valued at $40,193,000 after buying an additional 509,952 shares in the last quarter. ThornTree Capital Partners LP acquired a new position in shares of CarMax during the fourth quarter worth $35,612,000. Nuveen LLC acquired a new position in shares of CarMax during the first quarter worth $33,872,000. Finally, Wellington Management Group LLP lifted its position in shares of CarMax by 34.2% during the first quarter. Wellington Management Group LLP now owns 815,461 shares of the company's stock worth $63,541,000 after purchasing an additional 207,665 shares in the last quarter.

CarMax Stock Down 0.3%

KMX traded down $0.20 during trading on Friday, hitting $60.75. The company had a trading volume of 2,367,303 shares, compared to its average volume of 2,422,317. The company has a market cap of $9.12 billion, a PE ratio of 16.78, a P/E/G ratio of 0.99 and a beta of 1.35. The business has a 50-day moving average of $61.30 and a 200-day moving average of $67.20. The company has a debt-to-equity ratio of 2.86, a current ratio of 2.39 and a quick ratio of 0.80. CarMax, Inc. has a 1-year low of $54.53 and a 1-year high of $91.25.

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

Insiders Place Their Bets

In other CarMax news, EVP Jon G. Daniels sold 1,540 shares of the business's stock in a transaction on Wednesday, July 2nd. The shares were sold at an average price of $70.64, for a total transaction of $108,785.60. Following the completion of the sale, the executive vice president owned 2,779 shares in the company, valued at $196,308.56. The trade was a 35.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.70% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on KMX shares. Morgan Stanley started coverage on shares of CarMax in a research report on Tuesday, July 1st. They set an "overweight" rating and a $80.00 target price on the stock. Needham & Company LLC reissued a "buy" rating and set a $92.00 target price on shares of CarMax in a research report on Monday, June 23rd. Truist Financial boosted their target price on shares of CarMax from $72.00 to $74.00 and gave the stock a "hold" rating in a research report on Monday, June 23rd. Benchmark started coverage on shares of CarMax in a research report on Thursday, July 17th. They set a "buy" rating and a $75.00 target price on the stock. Finally, Evercore ISI reduced their target price on shares of CarMax from $82.00 to $80.00 and set an "outperform" rating on the stock in a research report on Tuesday, August 12th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $81.50.

About CarMax

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.