Philadelphia Financial Management of San Francisco LLC Makes New $16.37 Million Investment in CarMax, Inc. $KMX

Key Points

• Philadelphia Financial Management of San Francisco LLC purchased 210,082 shares of CarMax, Inc., valued at approximately $16.37 million, making it the firm's 9th largest position.
• Notable institutional investors, such as Fuller & Thaler and GAMMA Investing, significantly increased their stakes in CarMax, boosting their holdings by over 600% and 8,600% respectively in the first quarter.
• The average analyst rating for CarMax is "Moderate Buy", with a consensus target price of $81.50, despite fluctuations in price targets from various research firms.

Philadelphia Financial Management of San Francisco LLC bought a new stake in CarMax, Inc. (NYSE:KMX - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 210,082 shares of the company's stock, valued at approximately $16,370,000. CarMax comprises 3.2% of Philadelphia Financial Management of San Francisco LLC's investment portfolio, making the stock its 9th largest position. Philadelphia Financial Management of San Francisco LLC owned 0.14% of CarMax at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the company. Janus Henderson Group PLC increased its stake in CarMax by 0.6% in the 4th quarter. Janus Henderson Group PLC now owns 4,671,950 shares of the company's stock valued at $381,978,000 after purchasing an additional 29,715 shares in the last quarter. Baird Financial Group Inc. raised its position in shares of CarMax by 7.1% during the 1st quarter. Baird Financial Group Inc. now owns 3,093,632 shares of the company's stock worth $241,056,000 after purchasing an additional 206,106 shares during the last quarter. Invesco Ltd. raised its position in shares of CarMax by 4.9% during the 1st quarter. Invesco Ltd. now owns 2,863,594 shares of the company's stock worth $223,131,000 after purchasing an additional 133,629 shares during the last quarter. Turtle Creek Asset Management Inc. lifted its stake in CarMax by 2.2% in the 4th quarter. Turtle Creek Asset Management Inc. now owns 2,590,071 shares of the company's stock valued at $211,764,000 after buying an additional 56,906 shares in the last quarter. Finally, First Pacific Advisors LP grew its holdings in CarMax by 0.8% during the 1st quarter. First Pacific Advisors LP now owns 2,415,974 shares of the company's stock valued at $188,253,000 after buying an additional 18,912 shares during the last quarter.

Insider Activity

In related news, EVP Jon G. Daniels sold 1,540 shares of the firm's stock in a transaction 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 owned 2,779 shares in the company, valued at $196,308.56. This trade represents a 35.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 1.70% of the company's stock.

CarMax Stock Performance

KMX traded up $0.04 during midday trading on Tuesday, reaching $61.42. The company had a trading volume of 2,237,942 shares, compared to its average volume of 2,476,621. The stock has a market cap of $9.22 billion, a PE ratio of 16.97, a P/E/G ratio of 1.00 and a beta of 1.35. 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 business has a 50-day moving average price of $61.00 and a two-hundred day moving average price of $66.74. CarMax, Inc. has a 12-month low of $54.53 and a 12-month high of $91.25.

CarMax (NYSE:KMX - Get Free Report) last released its quarterly earnings results on Friday, June 20th. The company reported $1.38 earnings per share for the quarter, beating the consensus estimate of $1.18 by $0.20. The business 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 revenue for the quarter was up 6.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.97 earnings per share. On average, sell-side analysts expect that CarMax, Inc. will post 3.23 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of research firms have recently commented on KMX. Mizuho dropped their price objective on CarMax from $80.00 to $78.00 and set a "neutral" rating for the company in a report on Thursday, July 3rd. Royal Bank Of Canada lifted their price target on CarMax from $80.00 to $81.00 and gave the stock an "outperform" rating in a research note on Monday, June 23rd. Needham & Company LLC reiterated a "buy" rating and set a $92.00 price target on shares of CarMax in a report on Monday, June 23rd. Stephens reissued an "overweight" rating and issued a $81.00 price target on shares of CarMax in a report on Tuesday, August 19th. Finally, Morgan Stanley assumed coverage on shares of CarMax in a research note on Tuesday, July 1st. They issued an "overweight" rating and a $80.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target 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.