Vulcan Value Partners LLC Sells 1,292,238 Shares of CarMax, Inc. $KMX

Key Points

• Vulcan Value Partners cut its CarMax stake by 58.6%, selling 1.29 million shares in the second quarter and retaining 912,638 shares valued at approximately $48.3 million.
• CarMax shares fell 4.3% to $60.58, despite the company reporting quarterly EPS of $1.31—well above the $0.96 consensus—and revenue of $8.01 billion, up 6.2% year over year.
• Insiders continued buying shares, with company directors and other insiders purchasing 13,900 shares worth $735,574 over the past 90 days. Analysts’ consensus rating remains “Hold,” with an average price target of $51.

Vulcan Value Partners LLC reduced its position in CarMax, Inc. (NYSE:KMX - Free Report) by 58.6% in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 912,638 shares of the company's stock after selling 1,292,238 shares during the quarter. CarMax accounts for about 1.5% of Vulcan Value Partners LLC's holdings, making the stock its 16th largest holding. Vulcan Value Partners LLC owned approximately 0.64% of CarMax worth $48,269,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of CarMax by 0.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,389 shares of the company's stock worth $2,446,000 after acquiring an additional 173 shares in the last quarter. Jones Financial Companies Lllp boosted its stake in shares of CarMax by 3.1% in the 1st quarter. Jones Financial Companies Lllp now owns 5,372 shares of the company's stock valued at $419,000 after purchasing an additional 161 shares in the last quarter. Empowered Funds LLC grew its holdings in shares of CarMax by 12.5% during the 1st quarter. Empowered Funds LLC now owns 5,273 shares of the company's stock valued at $411,000 after purchasing an additional 585 shares during the last quarter. Intech Investment Management LLC raised its position in CarMax by 61.7% in the 1st quarter. Intech Investment Management LLC now owns 19,143 shares of the company's stock worth $1,492,000 after purchasing an additional 7,307 shares during the period. Finally, Acadian Asset Management LLC purchased a new position in CarMax in the 1st quarter worth $727,000.

Insider Buying and Selling at CarMax

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

CarMax Trading Down 4.3%

KMX traded down $2.71 during midday trading on Tuesday, reaching $60.58. 1,976,197 shares of the company's stock traded hands, compared to its average volume of 3,144,565. CarMax, Inc. has a 52 week low of $30.26 and a 52 week high of $65.28. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82. The firm has a fifty day moving average of $57.98 and a two-hundred day moving average of $48.40. The stock has a market capitalization of $8.60 billion, a price-to-earnings ratio of 39.59, a P/E/G ratio of 2.90 and a beta of 1.17.

CarMax (NYSE:KMX - Get Free Report) last posted its earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share (EPS) 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 for the quarter, compared to analysts' expectations of $7.42 billion. During the same period in the previous year, the firm earned $1.38 earnings per share. The business's revenue was up 6.2% compared to the same quarter last year. On average, equities analysts anticipate that CarMax, Inc. will post 2.73 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Bank of America upped their price target on shares of CarMax from $40.00 to $45.00 and gave the company an "underperform" rating in a research report on Wednesday, June 17th. Royal Bank Of Canada increased their target price on CarMax from $41.00 to $45.00 and gave the company a "sector perform" rating in a report on Thursday, June 18th. Zacks Research raised CarMax from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 11th. JPMorgan Chase & Co. upgraded CarMax from an "underweight" rating to a "neutral" rating and boosted their price objective for the company from $38.00 to $60.00 in a research report on Wednesday, July 29th. Finally, Barclays raised CarMax from an "underweight" rating to an "equal weight" rating and increased their price objective for the company from $37.00 to $61.00 in a research note on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, fourteen have given a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $51.00.

CarMax Profile

CarMax NYSE: KMX is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company's inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax's retail locations or browse the company's online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.

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