Rings Capital Management LLC Raises Stake in CarMax, Inc. $KMX

Key Points

• Rings Capital Management LLC increased its stake in CarMax, Inc. by 1.3%, now holding 508,500 shares, which represents 20.2% of its portfolio and is valued at approximately $39.6 million.
• Multiple institutional investors, including Mirae Asset Global Investments and GAMMA Investing, have also recently increased their holdings in CarMax during the first quarter.
• CarMax reported $1.38 EPS for the last quarter, exceeding analyst expectations, and forecasts a 3.23 EPS for the current year.

Rings Capital Management LLC boosted its holdings in CarMax, Inc. (NYSE:KMX - Free Report) by 1.3% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 508,500 shares of the company's stock after purchasing an additional 6,710 shares during the quarter. CarMax makes up about 20.2% of Rings Capital Management LLC's investment portfolio, making the stock its 2nd largest holding. Rings Capital Management LLC owned about 0.33% of CarMax worth $39,622,000 as of its most recent SEC filing.

A number of other hedge funds have also recently added to or reduced their stakes in KMX. Fuller & Thaler Asset Management Inc. boosted its holdings in CarMax by 626.1% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 903,024 shares of the company's stock worth $70,364,000 after purchasing an additional 778,652 shares during the period. GAMMA Investing LLC lifted its stake in CarMax by 8,675.6% in the first 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 during the last quarter. ThornTree Capital Partners LP bought a new stake in CarMax in the fourth quarter valued at $35,612,000. Nuveen LLC bought a new stake in CarMax in the first quarter valued at $33,872,000. Finally, Philadelphia Financial Management of San Francisco LLC bought a new stake in CarMax in the first quarter valued at $16,370,000.

CarMax Stock Performance

Shares of NYSE KMX traded up $0.04 during midday trading on Tuesday, reaching $61.42. 2,237,942 shares of the company traded hands, compared to its average volume of 2,476,621. CarMax, Inc. has a 52 week low of $54.53 and a 52 week high of $91.25. The stock has a 50-day moving average price of $61.00 and a 200 day moving average price of $66.74. The company has a debt-to-equity ratio of 2.86, a current ratio of 2.39 and a quick ratio of 0.80. The company has a market cap of $9.22 billion, a price-to-earnings ratio of 16.97, a PEG ratio of 1.00 and a beta of 1.35.

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, beating analysts' consensus estimates of $1.18 by $0.20. CarMax had a net margin of 2.09% and a return on equity of 9.11%. The business had revenue of $7.55 billion for 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 company's revenue was up 6.1% on a year-over-year basis. Sell-side analysts anticipate that CarMax, Inc. will post 3.23 earnings per share for the current fiscal year.

Insider Buying and Selling at CarMax

In other CarMax news, EVP Jon G. Daniels sold 1,540 shares of the business's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $70.64, for a total value of $108,785.60. Following 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 legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.70% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of research firms have issued reports on KMX. Truist Financial raised 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. Morgan Stanley began coverage on CarMax in a research note on Tuesday, July 1st. They issued an "overweight" rating and a $80.00 target price on the stock. JPMorgan Chase & Co. upgraded CarMax from an "underweight" rating to a "neutral" rating and cut their target price for the company from $65.00 to $58.00 in a research note on Wednesday, August 6th. Benchmark began coverage on CarMax in a research note on Thursday, July 17th. They issued a "buy" rating and a $75.00 target price on the stock. Finally, Stephens reiterated an "overweight" rating and issued a $81.00 target price on shares of CarMax in a research note on Tuesday, August 19th. One research 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 issued a Sell rating to the company's stock. According to MarketBeat, CarMax presently has an average rating of "Moderate Buy" and an average price target of $81.50.

CarMax Company Profile

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.