CarMax, Inc. (NYSE:KMX) Shares Sold by Vulcan Value Partners LLC

Key Points

• Vulcan Value Partners LLC has reduced its stake in CarMax, Inc. by 8.2%, now holding approximately 1.8% of the company’s portfolio.
• Wall Street analysts have mixed opinions on CarMax, with an average rating of "Moderate Buy" and a price target of $83.67.
• CarMax recently reported $1.38 EPS for the quarter, exceeding estimates by $0.20, despite revenue being slightly below expectations.

Vulcan Value Partners LLC reduced its holdings in CarMax, Inc. (NYSE:KMX - Free Report) by 8.2% in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 1,218,127 shares of the company's stock after selling 108,910 shares during the period. CarMax makes up 1.8% of Vulcan Value Partners LLC's portfolio, making the stock its 19th largest holding. Vulcan Value Partners LLC owned approximately 0.80% of CarMax worth $95,004,000 as of its most recent SEC filing.

Several other hedge funds have also recently made changes to their positions in KMX. Thrivent Financial for Lutherans raised its position in CarMax by 36.1% in the 4th quarter. Thrivent Financial for Lutherans now owns 8,728 shares of the company's stock worth $714,000 after purchasing an additional 2,315 shares during the period. Pictet Asset Management Holding SA grew its stake in shares of CarMax by 13.1% during the fourth quarter. Pictet Asset Management Holding SA now owns 96,297 shares of the company's stock valued at $7,873,000 after buying an additional 11,169 shares during the last quarter. Orion Portfolio Solutions LLC raised its holdings in shares of CarMax by 4.0% in the fourth quarter. Orion Portfolio Solutions LLC now owns 18,987 shares of the company's stock worth $1,552,000 after buying an additional 731 shares during the period. Allstate Corp purchased a new stake in shares of CarMax in the fourth quarter worth approximately $379,000. Finally, Arrowstreet Capital Limited Partnership bought a new stake in shares of CarMax during the 4th quarter worth approximately $18,710,000.

CarMax Stock Down 1.1%

CarMax stock traded down $0.63 during mid-day trading on Friday, reaching $55.98. 3,828,338 shares of the company were exchanged, compared to its average volume of 2,868,409. The company has a debt-to-equity ratio of 2.86, a quick ratio of 0.80 and a current ratio of 2.39. The firm has a market cap of $8.40 billion, a P/E ratio of 15.46, a PEG ratio of 0.91 and a beta of 1.36. The business has a fifty day moving average of $64.82 and a 200 day moving average of $71.56. CarMax, Inc. has a 12-month low of $55.37 and a 12-month high of $91.25.

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, topping analysts' consensus estimates 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 prior year, the business posted $0.97 EPS. The firm's quarterly revenue was up 6.1% on a year-over-year basis. Research analysts anticipate that CarMax, Inc. will post 3.23 earnings per share for the current fiscal year.

Insider Activity at CarMax

In other news, EVP Jon G. Daniels sold 1,540 shares of CarMax stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $70.64, for a total value of $108,785.60. Following the transaction, the executive vice president owned 2,779 shares of the company's stock, valued at $196,308.56. The trade was a 35.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 1.70% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have commented on the company. Truist Financial upped their price objective on CarMax from $72.00 to $74.00 and gave the company a "hold" rating in a research report on Monday, June 23rd. Benchmark assumed coverage on shares of CarMax in a research note on Thursday, July 17th. They set a "buy" rating and a $75.00 target price for the company. Mizuho reduced their price target on shares of CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a research note on Thursday, July 3rd. Needham & Company LLC reiterated a "buy" rating and set a $92.00 price objective on shares of CarMax in a report on Monday, June 23rd. Finally, Morgan Stanley assumed coverage on shares of CarMax in a research note on Tuesday, July 1st. They issued an "overweight" rating and a $80.00 target price on the stock. Two investment analysts have rated the stock with a sell rating, three have given a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $83.67.

CarMax 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.