Raymond James Financial Inc. Raises Holdings in CarMax, Inc. $KMX

Key Points

• Raymond James Financial Inc. has increased its stake in CarMax, Inc. by 2.2%, owning a total of 388,257 shares valued at approximately $30.25 million as of the latest SEC filing.
• Other hedge funds also significantly increased their holdings in CarMax, with AQR Capital Management boosting its stake by 82.9% and GAMMA Investing increasing its by 8,675.6% during recent quarters.
• CarMax reported $1.38 EPS for the last quarter, surpassing analysts' expectations, but its revenue of $7.55 billion fell slightly short of forecasts.

Raymond James Financial Inc. increased its position in shares of CarMax, Inc. (NYSE:KMX - Free Report) by 2.2% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 388,257 shares of the company's stock after purchasing an additional 8,358 shares during the period. Raymond James Financial Inc. owned 0.25% of CarMax worth $30,253,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. AQR Capital Management LLC boosted its stake in shares of CarMax by 82.9% during the 4th quarter. AQR Capital Management LLC now owns 1,400,012 shares of the company's stock worth $114,465,000 after purchasing an additional 634,390 shares during the period. GAMMA Investing LLC lifted its holdings in CarMax by 8,675.6% during the 1st quarter. GAMMA Investing LLC now owns 515,830 shares of the company's stock valued at $40,193,000 after buying an additional 509,952 shares in the last quarter. ThornTree Capital Partners LP bought a new stake in CarMax during the 4th quarter valued at about $35,612,000. Nuveen LLC bought a new stake in CarMax during the 1st quarter valued at about $33,872,000. Finally, Freestone Grove Partners LP bought a new stake in CarMax during the 4th quarter valued at about $20,504,000.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on KMX. Stephens reiterated an "overweight" rating and set a $81.00 price objective on shares of CarMax in a report on Tuesday, August 19th. Evercore ISI lowered their price target on shares of CarMax from $82.00 to $80.00 and set an "outperform" rating on the stock in a report on Tuesday, August 12th. Mizuho cut their price target on shares of CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a report on Thursday, July 3rd. Royal Bank Of Canada upped their price objective on CarMax from $80.00 to $81.00 and gave the stock an "outperform" rating in a research report on Monday, June 23rd. Finally, Truist Financial upped their price objective on CarMax from $72.00 to $74.00 and gave the stock a "hold" rating in a research report on Monday, June 23rd. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $81.50.

CarMax Price Performance

Shares of KMX traded down $0.60 during trading hours on Friday, hitting $61.57. 896,756 shares of the stock were exchanged, compared to its average volume of 2,910,468. The company has a debt-to-equity ratio of 2.86, a quick ratio of 0.80 and a current ratio of 2.39. CarMax, Inc. has a 12-month low of $54.53 and a 12-month high of $91.25. The company has a market cap of $9.24 billion, a price-to-earnings ratio of 17.01, a price-to-earnings-growth ratio of 1.01 and a beta of 1.36. The stock's 50-day moving average price is $62.14 and its two-hundred day moving average price is $68.33.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings results on Friday, June 20th. The company reported $1.38 EPS for the quarter, topping the consensus estimate of $1.18 by $0.20. CarMax had a return on equity of 9.11% and a net margin of 2.09%.The firm had revenue of $7.55 billion during the quarter, compared to analysts' expectations of $7.58 billion. During the same period in the previous year, the business earned $0.97 earnings per share. The firm's revenue for the quarter was up 6.1% on a year-over-year basis. Research analysts expect that CarMax, Inc. will post 3.23 earnings per share for the current year.

Insider Activity at CarMax

In related news, EVP Jon G. Daniels sold 1,540 shares of the business's stock in a transaction that occurred on Wednesday, July 2nd. The stock was sold at an average price of $70.64, for a total transaction of $108,785.60. Following the completion of the sale, the executive vice president directly owned 2,779 shares in the company, valued at approximately $196,308.56. The trade was a 35.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.70% of the company's stock.

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.