MGO One Seven LLC Grows Stake in CarMax, Inc. $KMX

Key Points

• MGO One Seven LLC increased its stake in CarMax by 363% in the fourth quarter, ending with 49,212 shares valued at about $1.9 million.
• CarMax reported better-than-expected quarterly earnings, posting $0.34 EPS versus the $0.22 estimate, while revenue came in at $5.95 billion and was slightly below last year’s level.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating and an average price target of $41.21, though a few firms recently raised targets or reiterated mixed ratings.

MGO One Seven LLC grew its stake in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 363.0% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 49,212 shares of the company's stock after purchasing an additional 38,583 shares during the quarter. MGO One Seven LLC's holdings in CarMax were worth $1,902,000 at the end of the most recent quarter.

A number of other large investors have also modified their holdings of KMX. CYBER HORNET ETFs LLC acquired a new position in CarMax during the 2nd quarter worth approximately $28,000. MUFG Securities EMEA plc acquired a new stake in CarMax in the second quarter valued at approximately $30,000. Center for Financial Planning Inc. acquired a new stake in CarMax in the third quarter valued at approximately $31,000. Advisory Services Network LLC purchased a new stake in shares of CarMax during the third quarter valued at approximately $32,000. Finally, True Wealth Design LLC lifted its position in shares of CarMax by 54.3% during the fourth quarter. True Wealth Design LLC now owns 907 shares of the company's stock worth $35,000 after purchasing an additional 319 shares in the last quarter.

CarMax Trading Up 0.0%

NYSE KMX opened at $40.35 on Monday. The company has a market capitalization of $5.72 billion, a price-to-earnings ratio of 25.22, a price-to-earnings-growth ratio of 1.53 and a beta of 1.19. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.20 and a quick ratio of 0.49. CarMax, Inc. has a 12 month low of $30.26 and a 12 month high of $71.99. The company's fifty day moving average price is $41.50 and its two-hundred day moving average price is $41.41.

CarMax (NYSE:KMX - Get Free Report) last released its earnings results on Tuesday, April 14th. The company reported $0.34 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.12. CarMax had a net margin of 0.96% and a return on equity of 7.00%. The company had revenue of $5.95 billion during the quarter, compared to the consensus estimate of $5.65 billion. During the same quarter in the previous year, the firm earned $0.58 EPS. The company's revenue was down 1.0% on a year-over-year basis. As a group, research analysts predict that CarMax, Inc. will post 2.3 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on KMX shares. Stephens raised their price target on shares of CarMax from $39.00 to $43.00 and gave the company an "equal weight" rating in a report on Thursday, April 2nd. Bank of America began coverage on shares of CarMax in a report on Wednesday, April 15th. They issued an "underperform" rating and a $40.00 price objective on the stock. Royal Bank Of Canada restated a "sector perform" rating and set a $41.00 target price on shares of CarMax in a research note on Wednesday, April 15th. Robert W. Baird lifted their target price on CarMax from $44.00 to $48.00 and gave the stock an "outperform" rating in a research report on Wednesday, February 18th. Finally, JPMorgan Chase & Co. boosted their price target on CarMax from $28.00 to $35.00 and gave the stock an "underweight" rating in a research note on Wednesday, April 15th. One research analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $41.21.

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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