Wedge Capital Management L L P NC Grows Stock Position in CarMax, Inc. $KMX

Key Points

• Wedge Capital Management L L P NC significantly increased its stake in CarMax by 54.9% during the second quarter, acquiring 36,376 additional shares to reach a total of 102,632 shares valued at approximately $6.9 million.
• CarMax's stock saw various analyst upgrades and downgrades, with target prices adjusted between $72 and $84, with the stock currently holding a consensus rating of "Moderate Buy."
• CarMax recently reported earnings of $1.38 per share, surpassing analysts' expectations and indicating a 6.1% increase in revenue compared to the previous year, despite a slight miss on revenue estimates.

Wedge Capital Management L L P NC increased its holdings in CarMax, Inc. (NYSE:KMX - Free Report) by 54.9% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 102,632 shares of the company's stock after buying an additional 36,376 shares during the quarter. Wedge Capital Management L L P NC owned about 0.07% of CarMax worth $6,898,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. CX Institutional grew its stake in shares of CarMax by 16.9% during the 2nd quarter. CX Institutional now owns 3,676 shares of the company's stock worth $247,000 after purchasing an additional 532 shares during the period. Assenagon Asset Management S.A. lifted its position in shares of CarMax by 10.3% during the 2nd quarter. Assenagon Asset Management S.A. now owns 33,999 shares of the company's stock valued at $2,285,000 after buying an additional 3,171 shares in the last quarter. Triangle Securities Wealth Management lifted its holdings in CarMax by 2.0% in the 2nd quarter. Triangle Securities Wealth Management now owns 20,613 shares of the company's stock valued at $1,385,000 after purchasing an additional 395 shares in the last quarter. HF Advisory Group LLC lifted its holdings in CarMax by 10.2% in the 2nd quarter. HF Advisory Group LLC now owns 27,763 shares of the company's stock valued at $1,866,000 after purchasing an additional 2,580 shares in the last quarter. Finally, NorthCrest Asset Manangement LLC purchased a new position in CarMax in the 2nd quarter valued at $327,000.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Benchmark assumed coverage on CarMax in a report on Thursday, July 17th. They set a "buy" rating and a $75.00 price target on the stock. Evercore ISI reduced their price target on CarMax from $82.00 to $80.00 and set an "outperform" rating on the stock in a report on Tuesday, August 12th. Mizuho reduced their price target on CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a report on Thursday, July 3rd. Stephens reduced their price objective on shares of CarMax from $81.00 to $74.00 and set an "overweight" rating on the stock in a report on Monday, September 15th. Finally, Morgan Stanley initiated coverage on shares of CarMax in a report on Tuesday, July 1st. They issued an "overweight" rating and a $80.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $81.50.

Insiders Place Their Bets

In other CarMax news, EVP Jon G. Daniels sold 1,540 shares of the company's stock in a transaction that occurred on 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 transaction, the executive vice president owned 2,779 shares in the company, valued at $196,308.56. This represents a 35.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.70% of the stock is currently owned by corporate insiders.

CarMax Trading Down 0.8%

KMX traded down $0.49 during midday trading on Tuesday, hitting $57.62. The company's stock had a trading volume of 1,305,213 shares, compared to its average volume of 2,906,423. The company has a current ratio of 2.39, a quick ratio of 0.80 and a debt-to-equity ratio of 2.86. The firm has a market cap of $8.65 billion, a P/E ratio of 15.87, a PEG ratio of 0.95 and a beta of 1.35. The firm has a 50-day moving average price of $59.49 and a two-hundred day moving average price of $65.31. CarMax, Inc. has a 52-week low of $54.53 and a 52-week high of $91.25.

CarMax (NYSE:KMX - Get Free Report) last issued its earnings results on Friday, June 20th. The company reported $1.38 earnings per share (EPS) 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 business had revenue of $7.55 billion during the quarter, compared to analysts' expectations of $7.58 billion. During the same quarter in the previous year, the business earned $0.97 EPS. The company's revenue for the quarter was up 6.1% on a year-over-year basis. On average, research analysts anticipate that CarMax, Inc. will post 3.23 earnings per share for the current 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.