Primecap Management Co. CA Has $371.62 Million Stake in CarMax, Inc. (NYSE:KMX)

Key Points

• Primecap Management Co. CA reduced its stake in CarMax, Inc. by 6.1%, holding approximately 4.77 million shares valued at $371.62 million after selling 311,150 shares in the first quarter.
• Multiple investment firms adjusted their positions in CarMax, with Accent Capital Management and Ameriflex Group buying new stakes and Colonial Trust Co SC increasing its holdings by 2,310%.
• CarMax reported a quarterly earnings beat with an EPS of $1.38, while the stock's 1-year low was $54.53 compared to a high of $91.25, and analysts have a consensus rating of "Moderate Buy".

Primecap Management Co. CA lessened its holdings in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 6.1% during the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 4,769,306 shares of the company's stock after selling 311,150 shares during the period. Primecap Management Co. CA owned 3.12% of CarMax worth $371,624,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Accent Capital Management LLC bought a new position in CarMax in the first quarter valued at about $34,000. Ameriflex Group Inc. bought a new position in shares of CarMax in the 4th quarter valued at about $53,000. Colonial Trust Co SC grew its position in shares of CarMax by 2,310.0% during the 4th quarter. Colonial Trust Co SC now owns 723 shares of the company's stock worth $59,000 after buying an additional 693 shares during the period. Blue Trust Inc. raised its stake in shares of CarMax by 49.2% during the first quarter. Blue Trust Inc. now owns 898 shares of the company's stock worth $70,000 after buying an additional 296 shares during the last quarter. Finally, Parallel Advisors LLC raised its stake in shares of CarMax by 38.4% during the first quarter. Parallel Advisors LLC now owns 937 shares of the company's stock worth $73,000 after buying an additional 260 shares during the last quarter.

Insider Activity

In related news, EVP Jon G. Daniels sold 1,540 shares of the 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 transaction, the executive vice president 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 document filed with the SEC, which can be accessed through this hyperlink. 1.70% of the stock is owned by company insiders.

CarMax Stock Down 0.6%

KMX stock traded down $0.31 during trading hours on Friday, reaching $54.94. 1,738,068 shares of the stock were exchanged, compared to its average volume of 3,093,608. The company has a market cap of $8.24 billion, a price-to-earnings ratio of 15.18, a PEG ratio of 0.90 and a beta of 1.36. The firm's 50-day moving average is $64.06 and its 200-day moving average is $70.79. CarMax, Inc. has a 12 month low of $54.53 and a 12 month high of $91.25. 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 (NYSE:KMX - Get Free Report) last announced its earnings results on Friday, June 20th. The company reported $1.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.18 by $0.20. The business had revenue of $7.55 billion for 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%. CarMax's revenue for the quarter was up 6.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.97 EPS. On average, equities research analysts expect that CarMax, Inc. will post 3.23 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on KMX. Evercore ISI reduced their price objective on shares of CarMax from $85.00 to $84.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 28th. Robert W. Baird cut their price target on CarMax from $95.00 to $90.00 and set an "outperform" rating on the stock in a research note on Friday, April 11th. Mizuho decreased their price objective on CarMax from $80.00 to $78.00 and set a "neutral" rating for the company in a research note on Thursday, July 3rd. Truist Financial increased their target price on CarMax from $72.00 to $74.00 and gave the company a "hold" rating in a research note on Monday, June 23rd. Finally, Cfra Research upgraded CarMax to a "strong-buy" rating in a report on Thursday, April 10th. One analyst has rated the stock with a sell rating, four have assigned a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $83.08.

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.