VIRGINIA RETIREMENT SYSTEMS ET Al Makes New $1.55 Million Investment in CarMax, Inc. $KMX

Key Points

• Virginia Retirement Systems purchased 29,300 CarMax shares worth approximately $1.55 million during the second quarter, joining several other institutional investors that increased or initiated positions.
• CarMax reported quarterly earnings of $1.31 per share, exceeding the $0.96 consensus estimate, while revenue rose 6.2% year over year to $8.01 billion.
• Analyst sentiment remains mixed: recent upgrades and higher price targets contrast with a broader consensus “Hold” rating and an average price target of $51, below the stock’s reported $61.47 price.

VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in CarMax, Inc. (NYSE:KMX - Free Report) during the second quarter, according to the company in its most recent filing with the SEC. The firm purchased 29,300 shares of the company's stock, valued at approximately $1,550,000.

A number of other institutional investors have also recently added to or reduced their stakes in the company. California State Teachers Retirement System grew its holdings in shares of CarMax by 4,934.8% during the 2nd quarter. California State Teachers Retirement System now owns 8,253,061 shares of the company's stock worth $436,504,000 after purchasing an additional 8,089,141 shares during the period. iSAM Funds UK Ltd acquired a new stake in CarMax during the 2nd quarter valued at $222,000. Nykredit A S purchased a new stake in CarMax during the 2nd quarter worth $256,000. Moore Capital Management LP purchased a new stake in CarMax during the 2nd quarter worth $652,000. Finally, Two Sigma Securities LLC lifted its holdings in CarMax by 36.6% in the 2nd quarter. Two Sigma Securities LLC now owns 21,833 shares of the company's stock worth $1,155,000 after buying an additional 5,846 shares in the last quarter.

CarMax Stock Performance

Shares of KMX stock opened at $61.47 on Friday. The stock has a market capitalization of $8.72 billion, a price-to-earnings ratio of 40.18, a PEG ratio of 2.77 and a beta of 1.17. CarMax, Inc. has a one year low of $30.26 and a one year high of $65.28. The company's 50-day simple moving average is $58.70 and its 200-day simple moving average is $48.82. The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.82 and a current ratio of 2.70.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings data on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.35. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The firm had revenue of $8.01 billion during the quarter, compared to analyst estimates of $7.42 billion. During the same period in the previous year, the company earned $1.38 earnings per share. CarMax's quarterly revenue was up 6.2% on a year-over-year basis. Equities analysts anticipate that CarMax, Inc. will post 2.73 earnings per share for the current fiscal year.

Insider Transactions at CarMax

In other news, Director Sona Chawla purchased 2,000 shares of the stock in a transaction dated Thursday, June 25th. The stock was acquired at an average cost of $53.39 per share, for a total transaction of $106,780.00. Following the acquisition, the director owned 21,702 shares of the company's stock, valued at $1,158,669.78. The trade was a 10.15% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Peter Bensen purchased 2,500 shares of the company's stock in a transaction that occurred on Monday, June 22nd. The shares were purchased at an average cost of $52.20 per share, for a total transaction of $130,500.00. Following the completion of the transaction, the director owned 24,796 shares in the company, valued at approximately $1,294,351.20. This represents a 11.21% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders bought 13,900 shares of company stock worth $735,574. 1.01% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

KMX has been the subject of several recent analyst reports. Robert W. Baird raised their target price on CarMax from $48.00 to $55.00 and gave the company an "outperform" rating in a research note on Thursday, June 18th. Stephens upgraded CarMax from an "equal weight" rating to an "overweight" rating and set a $66.00 price objective for the company in a research note on Thursday, June 18th. Mizuho lifted their price objective on CarMax from $38.00 to $43.00 and gave the stock a "neutral" rating in a report on Thursday, June 18th. Barclays upgraded CarMax from an "underweight" rating to an "equal weight" rating and increased their target price for the company from $37.00 to $61.00 in a research note on Tuesday, July 21st. Finally, Bank of America raised their price target on shares of CarMax from $40.00 to $45.00 and gave the stock an "underperform" rating in a research report on Wednesday, June 17th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, fourteen have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $51.00.

CarMax Company Profile

CarMax, Inc is a specialty retailer of used vehicles and one of the largest automotive retailers in the United States. The company sells a broad selection of used cars, trucks and sport utility vehicles through its retail locations and online platform. CarMax also purchases vehicles from consumers and other sources, providing customers with a streamlined alternative to traditional private-party sales.

In addition to retail sales, CarMax operates wholesale vehicle auctions for vehicles that do not meet its retail standards or business requirements.

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