Kinsale Capital Group Inc. Has $9.24 Million Stake in CarMax, Inc. $KMX

Kinsale Capital Group Inc. raised its stake in CarMax, Inc. (NYSE:KMX) by 18.8% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 174,637 shares of the company’s stock after acquiring an additional 27,644 shares during the quarter. Kinsale Capital Group Inc. owned approximately 0.12% of CarMax worth $9,237,000 as of its most recent SEC filing.

A number of other hedge funds also recently made changes to their positions in the stock. Bayforest Capital Ltd grew its holdings in shares of CarMax by 2,150.2% during the 2nd quarter. Bayforest Capital Ltd now owns 6,143 shares of the company’s stock valued at $325,000 after purchasing an additional 5,870 shares during the last quarter. PDS Planning Inc bought a new position in CarMax in the 2nd quarter valued at approximately $206,000. Janney Montgomery Scott LLC bought a new position in CarMax in the 2nd quarter valued at approximately $377,000. North Dakota State Investment Board acquired a new stake in CarMax in the second quarter valued at approximately $223,000. Finally, Gagnon Securities LLC boosted its position in CarMax by 5.1% in the second quarter. Gagnon Securities LLC now owns 325,410 shares of the company’s stock valued at $17,211,000 after buying an additional 15,711 shares in the last quarter.

Key Headlines Impacting CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Zacks upgraded CarMax from “Hold” to “Strong Buy.” The firm raised multiple EPS forecasts, including estimates for FY2028 to $3.11 from $2.96 and FY2029 to $3.90 from $3.21. It also increased quarterly projections for Q1 2028, Q2 2028, Q3 2028, Q4 2028 and Q1 2029, signaling improving expectations for the used-car retailer’s longer-term earnings power. Zacks upgrade and earnings estimates
• Neutral Sentiment: CarMax’s latest reported quarter provides fundamental support: revenue increased 6.2% year over year to $8.01 billion and earnings of $1.31 per share exceeded the $0.96 analyst consensus. However, earnings were below the $1.38 per share reported in the prior-year period, and the company’s current-year consensus EPS estimate remains $2.73.
• Negative Sentiment: One valuation analysis says CarMax stock looks stretched following a 53% five-year slump and subsequent recovery. With shares near their 52-week high and trading at roughly 39 times earnings, investors may be concerned that the current valuation already discounts much of the expected improvement. CarMax stock looks stretched after a 53% five-year slump
• Negative Sentiment: A separate analysis concludes that CarMax could be approximately 7% above fair value, citing the impact of a leadership change. This raises the risk that the stock’s recent gains have outpaced its underlying fundamentals and could limit further upside. CarMax could be 7% above fair value on leadership change

Insider Activity at CarMax

In related news, Director Peter J. Bensen bought 2,500 shares of the business’s stock in a transaction on Monday, June 22nd. The shares were purchased at an average cost of $52.20 per share, with a total value 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 represents a 11.21% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Sona Chawla purchased 2,000 shares of CarMax stock in a transaction on Thursday, June 25th. The stock was bought at an average price of $53.39 per share, for a total transaction of $106,780.00. Following the transaction, the director directly owned 21,702 shares in the company, valued at approximately $1,158,669.78. The trade was a 10.15% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders purchased 13,900 shares of company stock worth $735,574 over the last three months. Company insiders own 1.01% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms have weighed in on KMX. Truist Financial boosted their target price on shares of CarMax from $47.00 to $50.00 and gave the stock a “hold” rating in a research note on Thursday, June 18th. Weiss Ratings upgraded CarMax from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, July 20th. Royal Bank Of Canada raised their price objective on CarMax from $41.00 to $45.00 and gave the company a “sector perform” rating in a report on Thursday, June 18th. JPMorgan Chase & Co. upgraded CarMax from an “underweight” rating to a “neutral” rating and boosted their price objective for the stock 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 upped their target price for the stock from $37.00 to $61.00 in a report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, fourteen have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $51.00.

CarMax Trading Down 0.3%

KMX opened at $59.85 on Friday. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82. CarMax, Inc. has a fifty-two week low of $30.26 and a fifty-two week high of $62.56. The company’s 50 day moving average price is $54.63 and its two-hundred day moving average price is $46.50. The firm has a market capitalization of $8.49 billion, a price-to-earnings ratio of 39.12, a PEG ratio of 2.74 and a beta of 1.15.

CarMax (NYSE:KMX) last released its quarterly 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. The firm had revenue of $8.01 billion during the quarter, compared to the consensus estimate of $7.42 billion. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The company’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same quarter last year, the firm earned $1.38 earnings per share. As a group, research analysts predict that CarMax, Inc. will post 2.73 earnings per share for the current year.

CarMax Company 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.