Pacer Advisors Inc. Acquires Shares of 1,169,654 CarMax, Inc. $KMX

Key Points

• Pacer Advisors acquired 1.17 million CarMax shares worth approximately $48.6 million, giving it an estimated 0.82% stake. Several other institutional investors also increased their holdings or initiated positions.
• Analyst sentiment remains cautious despite recent upgrades: CarMax has a consensus “Reduce” rating and a $51 average price target, with most analysts maintaining Hold ratings.
• CarMax reported quarterly earnings of $1.31 per share, exceeding estimates of $0.96, while revenue rose 6.2% year over year to $8.01 billion. The stock opened at $58.42 and has traded between $30.26 and $62.56 over the past year.

Pacer Advisors Inc. bought a new position in CarMax, Inc. (NYSE:KMX - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 1,169,654 shares of the company's stock, valued at approximately $48,634,000. Pacer Advisors Inc. owned about 0.82% of CarMax at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of KMX. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in CarMax by 0.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,389 shares of the company's stock valued at $2,446,000 after buying an additional 173 shares during the last quarter. Jones Financial Companies Lllp raised its position in shares of CarMax by 3.1% during the first quarter. Jones Financial Companies Lllp now owns 5,372 shares of the company's stock worth $419,000 after acquiring an additional 161 shares during the last quarter. Empowered Funds LLC lifted its stake in shares of CarMax by 12.5% during the first quarter. Empowered Funds LLC now owns 5,273 shares of the company's stock valued at $411,000 after acquiring an additional 585 shares during the period. Intech Investment Management LLC lifted its stake in shares of CarMax by 61.7% during the first quarter. Intech Investment Management LLC now owns 19,143 shares of the company's stock valued at $1,492,000 after acquiring an additional 7,307 shares during the period. Finally, Acadian Asset Management LLC bought a new position in CarMax in the first quarter valued at about $727,000.

Analyst Upgrades and Downgrades

KMX has been the subject of a number of research reports. Barclays upgraded CarMax from an "underweight" rating to an "equal weight" rating and lifted their price objective for the stock from $37.00 to $61.00 in a research report on Tuesday, July 21st. JPMorgan Chase & Co. upgraded shares of CarMax from an "underweight" rating to a "neutral" rating and upped their target price for the company from $38.00 to $60.00 in a research report on Wednesday, July 29th. Robert W. Baird raised their target price on shares of CarMax from $48.00 to $55.00 and gave the company an "outperform" rating in a research note on Thursday, June 18th. Mizuho lifted their price target 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. Finally, Royal Bank Of Canada boosted their price target on shares of CarMax from $41.00 to $45.00 and gave the stock a "sector perform" rating in a research note on Thursday, June 18th. Two analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $51.00.

Insider Activity at CarMax

In other news, Director Peter J. Bensen purchased 2,500 shares of the business's stock in a transaction that occurred on Monday, June 22nd. The shares were acquired at an average cost of $52.20 per share, for a total transaction of $130,500.00. Following the transaction, the director directly owned 24,796 shares of the company's stock, valued at approximately $1,294,351.20. The trade was a 11.21% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. Also, CEO Keith Barr acquired 9,400 shares of CarMax stock in a transaction that occurred on Monday, June 22nd. The shares were purchased at an average cost of $53.01 per share, for a total transaction of $498,294.00. Following the purchase, the chief executive officer directly owned 33,375 shares in the company, valued at $1,769,208.75. The trade was a 39.21% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have bought 13,900 shares of company stock worth $735,574 in the last ninety days. Company insiders own 1.01% of the company's stock.

CarMax Trading Up 2.0%

NYSE KMX opened at $58.42 on Tuesday. The stock has a 50-day simple moving average of $52.10 and a 200 day simple moving average of $45.82. The company has a market capitalization of $8.29 billion, a PE ratio of 38.18, a P/E/G ratio of 2.62 and a beta of 1.17. The company has a current ratio of 2.70, a quick ratio of 0.82 and a debt-to-equity ratio of 2.87. CarMax, Inc. has a 12 month low of $30.26 and a 12 month high of $62.56.

CarMax (NYSE:KMX - Get Free Report) last released its earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.35. The firm had revenue of $8.01 billion for the quarter, compared to analyst estimates of $7.42 billion. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The company's quarterly revenue was up 6.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.38 earnings per share. Research analysts forecast that CarMax, Inc. will post 2.73 EPS for the current year.

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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