Welch & Forbes LLC Lowers Stock Holdings in CarMax, Inc. $KMX

Key Points

• Welch & Forbes LLC trimmed its CarMax stake by 4.4% in Q1, selling 19,740 shares and ending with 426,833 shares worth about $17.75 million.
• CarMax insiders have been buying stock recently: directors Peter J. Bensen and Sona Chawla both made purchases in late June, and insiders bought 13,900 shares worth about $735,574 over the past 90 days.
• CarMax reported better-than-expected quarterly results, with EPS of $1.31 versus estimates of $0.96 and revenue of $8.01 billion, while analysts currently have an overall “Reduce” rating and an average price target of $47.73.

Welch & Forbes LLC lessened its holdings in CarMax, Inc. (NYSE:KMX - Free Report) by 4.4% in the first quarter, according to its most recent filing with the SEC. The institutional investor owned 426,833 shares of the company's stock after selling 19,740 shares during the period. Welch & Forbes LLC owned 0.30% of CarMax worth $17,748,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of KMX. CYBER HORNET ETFs LLC bought a new stake in CarMax during the 2nd quarter valued at approximately $28,000. MUFG Securities EMEA plc purchased a new stake in CarMax during the 2nd quarter valued at approximately $30,000. Huntington National Bank raised its position in shares of CarMax by 62.4% during the fourth quarter. Huntington National Bank now owns 690 shares of the company's stock valued at $27,000 after buying an additional 265 shares during the last quarter. Advisory Services Network LLC bought a new stake in shares of CarMax during the third quarter valued at approximately $32,000. Finally, Commonwealth Retirement Investments LLC purchased a new position in shares of CarMax in the fourth quarter worth $33,000.

Insider Activity

In related news, Director Peter J. Bensen purchased 2,500 shares of the firm's stock in a transaction that occurred on Monday, June 22nd. The shares were bought at an average price 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 approximately $1,294,351.20. This represents a 11.21% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Sona Chawla purchased 2,000 shares of the stock in a transaction that occurred on Thursday, June 25th. The stock was bought at an average price 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 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 disclosure for this purchase is available in the SEC filing. Insiders purchased 13,900 shares of company stock valued at $735,574 in the last ninety days. Insiders own 1.01% of the company's stock.

CarMax Price Performance

Shares of CarMax stock traded up $2.55 during trading hours on Friday, reaching $53.56. The company's stock had a trading volume of 2,287,836 shares, compared to its average volume of 3,722,328. The firm has a 50 day moving average price of $45.95 and a 200-day moving average price of $43.90. 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 stock has a market cap of $7.60 billion, a P/E ratio of 35.00, a P/E/G ratio of 1.74 and a beta of 1.17. CarMax, Inc. has a one year low of $30.26 and a one year high of $66.40.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings results on Wednesday, June 17th. The company reported $1.31 EPS for the quarter, beating analysts' consensus estimates of $0.96 by $0.35. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The firm had revenue of $8.01 billion during the quarter, compared to the consensus estimate of $7.42 billion. During the same quarter last year, the firm earned $1.38 EPS. The firm's revenue for the quarter was up 6.2% compared to the same quarter last year. On average, analysts predict that CarMax, Inc. will post 2.7 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Argus upgraded shares of CarMax to a "hold" rating in a research report on Thursday, April 16th. Stephens upgraded shares of CarMax from an "equal weight" rating to an "overweight" rating and set a $66.00 price target on the stock in a research note on Thursday, June 18th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of CarMax in a report on Monday, July 6th. UBS Group boosted their target price on CarMax from $42.00 to $57.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 23rd. Finally, Morgan Stanley raised their price target on CarMax from $35.00 to $44.00 and gave the company an "equal weight" rating in a report on Tuesday, June 23rd. Two equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $47.73.

About CarMax

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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