Schwerin Boyle Capital Management Inc. Lowers Stock Position in CarMax, Inc. $KMX

Key Points

• Schwerin Boyle Capital Management Inc. has reduced its stake in CarMax, Inc. by 2.1%, now owning approximately $32.42 million in shares, making up 3.3% of its total holdings.
• CarMax reported better than expected earnings per share of $1.38, outpacing the $1.18 consensus estimate, despite revenue slightly missing forecasts at $7.55 billion.
• Several institutional investors, including First Trust Advisors and Northern Trust Corp, have increased their positions in CarMax, indicating growing investor interest in the company.

Schwerin Boyle Capital Management Inc. lessened its position in CarMax, Inc. (NYSE:KMX - Free Report) by 2.1% in the first quarter, according to its most recent disclosure with the SEC. The firm owned 416,069 shares of the company's stock after selling 9,136 shares during the period. CarMax makes up about 3.3% of Schwerin Boyle Capital Management Inc.'s holdings, making the stock its 9th largest position. Schwerin Boyle Capital Management Inc. owned 0.27% of CarMax worth $32,420,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Zions Bancorporation National Association UT bought a new position in shares of CarMax in the first quarter valued at approximately $27,000. Accent Capital Management LLC bought a new position in shares of CarMax in the first quarter valued at approximately $34,000. Strengthening Families & Communities LLC lifted its holdings in shares of CarMax by 93.1% in the first quarter. Strengthening Families & Communities LLC now owns 531 shares of the company's stock valued at $39,000 after purchasing an additional 256 shares in the last quarter. Ameriflex Group Inc. bought a new position in shares of CarMax in the fourth quarter valued at approximately $53,000. Finally, Colonial Trust Co SC lifted its holdings in shares of CarMax by 2,310.0% in the fourth quarter. Colonial Trust Co SC now owns 723 shares of the company's stock valued at $59,000 after purchasing an additional 693 shares in the last quarter.

Insider Activity at CarMax

In other news, EVP Jon G. Daniels sold 1,540 shares of the business's stock in a transaction dated 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 sale, the executive vice president owned 2,779 shares of the company's stock, valued at approximately $196,308.56. The trade was a 35.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 1.70% of the company's stock.

Analyst Ratings Changes

KMX has been the topic of a number of recent analyst reports. Needham & Company LLC reissued a "buy" rating and set a $92.00 price target on shares of CarMax in a research report on Monday, June 23rd. Wall Street Zen upgraded CarMax from a "sell" rating to a "hold" rating in a research note on Wednesday, May 7th. Royal Bank Of Canada increased their price target on CarMax from $80.00 to $81.00 and gave the company an "outperform" rating in a research report on Monday, June 23rd. Benchmark began coverage on CarMax in a research report on Thursday, July 17th. They issued a "buy" rating and a $75.00 price objective on the stock. Finally, Mizuho reduced 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. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, CarMax currently has an average rating of "Moderate Buy" and a consensus price target of $81.50.

CarMax Stock Performance

CarMax stock traded up $0.03 during midday trading on Thursday, reaching $62.10. The stock had a trading volume of 3,370,608 shares, compared to its average volume of 2,711,653. CarMax, Inc. has a 12 month low of $54.53 and a 12 month high of $91.25. The firm's 50-day moving average price is $62.18 and its 200 day moving average price is $68.49. The firm has a market capitalization of $9.32 billion, a PE ratio of 17.15, a P/E/G ratio of 1.01 and a beta of 1.36. The company has a quick ratio of 0.80, a current ratio of 2.39 and a debt-to-equity ratio of 2.86.

CarMax (NYSE:KMX - Get Free Report) last posted its quarterly earnings results on Friday, June 20th. The company reported $1.38 EPS for the quarter, topping analysts' consensus estimates of $1.18 by $0.20. The firm 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 business's revenue for the quarter was up 6.1% on a year-over-year basis. During the same period last year, the company earned $0.97 earnings per share. As a group, research analysts predict that CarMax, Inc. will post 3.23 earnings per share for the current fiscal year.

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.