CarMax, Inc. $KMX Shares Bought by Pallas Capital Advisors LLC

Key Points

• Pallas Capital Advisors LLC significantly increased its holdings in CarMax, Inc. by 254.8% during Q2, acquiring an additional 27,805 shares, bringing its total ownership to 38,716 shares valued at $2,602,000.
• Multiple institutional investors, including New England Research & Management Inc. and MassMutual Private Wealth & Trust FSB, have also adjusted their stakes in CarMax, highlighting growing institutional interest in the company.
• CarMax's stock has been rated "Moderate Buy" with an average target price of $80.92, despite recent adjustments by analysts lowering price targets after the company recently reported a 6.1% increase in revenue year-over-year.

Pallas Capital Advisors LLC grew its stake in CarMax, Inc. (NYSE:KMX - Free Report) by 254.8% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 38,716 shares of the company's stock after acquiring an additional 27,805 shares during the quarter. Pallas Capital Advisors LLC's holdings in CarMax were worth $2,602,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also made changes to their positions in the company. Mirae Asset Global Investments Co. Ltd. increased its holdings in shares of CarMax by 13.0% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 20,678 shares of the company's stock valued at $1,571,000 after acquiring an additional 2,375 shares during the period. Teacher Retirement System of Texas purchased a new position in shares of CarMax in the 1st quarter valued at $1,753,000. Sequoia Financial Advisors LLC increased its holdings in shares of CarMax by 5.5% in the 1st quarter. Sequoia Financial Advisors LLC now owns 3,367 shares of the company's stock valued at $262,000 after acquiring an additional 176 shares during the period. Asset Management One Co. Ltd. increased its holdings in shares of CarMax by 3.5% in the 1st quarter. Asset Management One Co. Ltd. now owns 60,653 shares of the company's stock valued at $4,726,000 after acquiring an additional 2,078 shares during the period. Finally, GAMMA Investing LLC increased its holdings in shares of CarMax by 12.6% in the 1st quarter. GAMMA Investing LLC now owns 6,620 shares of the company's stock valued at $516,000 after acquiring an additional 742 shares during the period.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on KMX shares. JPMorgan Chase & Co. lifted their price target on CarMax from $58.00 to $65.00 and gave the company a "neutral" rating in a report on Thursday. Evercore ISI lowered their price target on CarMax from $82.00 to $80.00 and set an "outperform" rating for the company in a research report on Tuesday, August 12th. Mizuho lowered their price target on CarMax from $80.00 to $78.00 and set a "neutral" rating for the company in a research report on Thursday, July 3rd. Morgan Stanley began coverage on CarMax in a report on Tuesday, July 1st. They issued an "overweight" rating and a $80.00 price objective for the company. Finally, Stephens decreased their price objective on CarMax from $81.00 to $74.00 and set an "overweight" rating for the company in a report on Monday, September 15th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $81.50.

Insiders Place Their Bets

In related news, EVP Jon G. Daniels sold 1,540 shares of the stock in a transaction that occurred on Wednesday, July 2nd. The stock was 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 directly owned 2,779 shares in the company, valued at approximately $196,308.56. This represents a 35.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 1.70% of the company's stock.

CarMax Trading Down 2.6%

Shares of KMX stock traded down $1.58 on Friday, hitting $58.42. 5,808,787 shares of the stock traded hands, compared to its average volume of 2,424,319. The firm's 50-day moving average price is $59.63 and its two-hundred day moving average price is $65.61. The company has a debt-to-equity ratio of 2.86, a quick ratio of 0.80 and a current ratio of 2.39. The stock has a market capitalization of $8.77 billion, a PE ratio of 16.14, a PEG ratio of 0.98 and a beta of 1.35. CarMax, Inc. has a twelve month low of $54.53 and a twelve month high of $91.25.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings data 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. The company had revenue of $7.55 billion during the quarter, compared to analyst estimates of $7.58 billion. CarMax had a return on equity of 9.11% and a net margin of 2.09%.The firm's revenue for the quarter was up 6.1% compared to the same quarter last year. During the same period in the prior year, the business posted $0.97 earnings per share. As a group, analysts anticipate that CarMax, Inc. will post 3.23 EPS for the current year.

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.