QVT Financial LP Increases Stock Position in CarMax, Inc. $KMX

QVT Financial LP raised its holdings in CarMax, Inc. (NYSE:KMX) by 557.1% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 230,000 shares of the company’s stock after purchasing an additional 195,000 shares during the period. CarMax accounts for approximately 0.8% of QVT Financial LP’s portfolio, making the stock its 17th largest holding. QVT Financial LP owned approximately 0.16% of CarMax worth $8,887,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently modified their holdings of the business. Norges Bank purchased a new stake in shares of CarMax in the fourth quarter valued at about $159,232,000. Dimensional Fund Advisors LP lifted its holdings in shares of CarMax by 8.2% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,985,895 shares of the company’s stock valued at $154,023,000 after purchasing an additional 300,694 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of CarMax by 73.7% in the third quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock valued at $158,074,000 after purchasing an additional 1,494,205 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of CarMax by 14.2% in the third quarter. Invesco Ltd. now owns 3,425,737 shares of the company’s stock valued at $153,713,000 after purchasing an additional 426,809 shares in the last quarter. Finally, Vulcan Value Partners LLC lifted its holdings in shares of CarMax by 25.8% in the fourth quarter. Vulcan Value Partners LLC now owns 2,928,832 shares of the company’s stock valued at $113,210,000 after purchasing an additional 600,712 shares in the last quarter.

CarMax Stock Performance

NYSE:KMX opened at $51.27 on Monday. CarMax, Inc. has a 1-year low of $30.26 and a 1-year high of $71.99. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.20 and a quick ratio of 0.49. The firm has a 50 day simple moving average of $41.83 and a 200-day simple moving average of $42.19. The firm has a market cap of $7.27 billion, a PE ratio of 32.04, a P/E/G ratio of 1.95 and a beta of 1.21.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Tuesday, April 14th. The company reported $0.34 EPS for the quarter, topping the consensus estimate of $0.22 by $0.12. CarMax had a net margin of 0.96% and a return on equity of 7.00%. The firm had revenue of $5.95 billion during the quarter, compared to analyst estimates of $5.65 billion. During the same quarter in the prior year, the business posted $0.58 earnings per share. CarMax’s revenue for the quarter was down 1.0% compared to the same quarter last year. On average, equities analysts expect that CarMax, Inc. will post 2.28 EPS for the current year.

Key CarMax News

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: CarMax posted better-than-expected quarterly results last month, reporting EPS of $0.34 versus the $0.22 consensus and revenue of $5.95 billion versus $5.65 billion expected, which supports the stock’s longer-term rebound.
• Positive Sentiment: Wall Street Zen upgraded CarMax to a “Hold” rating, which may help stabilize investor sentiment. Article Title
• Neutral Sentiment: A report questioned whether CarMax’s finance-accounting leadership shift reflects confidence in the company’s strategy, but the item does not indicate a major change in fundamentals. Article Title
• Negative Sentiment: Zacks Research lowered its EPS estimates for multiple upcoming periods, including FY2027, FY2028, FY2029, and several quarterly forecasts, signaling slower expected earnings momentum for CarMax.
• Negative Sentiment: The repeated downward revisions to future earnings expectations could weigh on valuation if investors become more cautious about CarMax’s growth trajectory.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the stock. Robert W. Baird boosted their price objective on shares of CarMax from $44.00 to $48.00 and gave the company an “outperform” rating in a research report on Wednesday, February 18th. Wall Street Zen raised shares of CarMax from a “sell” rating to a “hold” rating in a research report on Saturday. Bank of America assumed coverage on shares of CarMax in a research report on Wednesday, April 15th. They issued an “underperform” rating and a $40.00 price objective for the company. JPMorgan Chase & Co. boosted their price objective on shares of CarMax from $35.00 to $37.00 and gave the company an “underweight” rating in a research report on Thursday. Finally, Evercore set a $45.00 price objective on shares of CarMax in a research report on Friday, April 10th. One equities research analyst has rated the stock with a Buy rating, fourteen have given a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $41.73.

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.