GAMMA Investing LLC Grows Stake in CarMax, Inc. (NYSE:KMX)

GAMMA Investing LLC increased its holdings in CarMax, Inc. (NYSE:KMX) by 14.4% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 5,878 shares of the company’s stock after purchasing an additional 740 shares during the period. GAMMA Investing LLC’s holdings in CarMax were worth $481,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Quarry LP lifted its holdings in shares of CarMax by 78.6% in the second quarter. Quarry LP now owns 418 shares of the company’s stock worth $31,000 after buying an additional 184 shares in the last quarter. Catalyst Capital Advisors LLC bought a new stake in CarMax in the 3rd quarter valued at $32,000. True Wealth Design LLC lifted its stake in CarMax by 4,844.4% in the 3rd quarter. True Wealth Design LLC now owns 445 shares of the company’s stock worth $34,000 after purchasing an additional 436 shares in the last quarter. Studio Investment Management LLC boosted its holdings in shares of CarMax by 176.7% during the 2nd quarter. Studio Investment Management LLC now owns 523 shares of the company’s stock valued at $38,000 after purchasing an additional 334 shares during the last quarter. Finally, Larson Financial Group LLC boosted its holdings in shares of CarMax by 91.9% during the 3rd quarter. Larson Financial Group LLC now owns 737 shares of the company’s stock valued at $57,000 after purchasing an additional 353 shares during the last quarter.

CarMax Stock Performance

Shares of NYSE:KMX opened at $80.07 on Monday. The company has a current ratio of 2.25, a quick ratio of 0.68 and a debt-to-equity ratio of 2.93. CarMax, Inc. has a 12 month low of $65.83 and a 12 month high of $91.25. The company has a market capitalization of $12.40 billion, a price-to-earnings ratio of 30.10, a PEG ratio of 1.74 and a beta of 1.71. The firm’s 50-day moving average is $80.97 and its 200 day moving average is $78.63.

CarMax (NYSE:KMX) last released its earnings results on Thursday, December 19th. The company reported $0.81 EPS for the quarter, beating analysts’ consensus estimates of $0.62 by $0.19. CarMax had a return on equity of 6.83% and a net margin of 1.61%. The firm had revenue of $6.22 billion for the quarter, compared to analysts’ expectations of $6.05 billion. During the same quarter in the prior year, the firm posted $0.52 earnings per share. The company’s quarterly revenue was up 1.2% on a year-over-year basis. Research analysts predict that CarMax, Inc. will post 3.01 EPS for the current year.

Wall Street Analyst Weigh In

A number of research firms recently commented on KMX. Wedbush reiterated an “outperform” rating and issued a $95.00 target price on shares of CarMax in a research report on Wednesday, October 16th. Needham & Company LLC upped their price objective on CarMax from $90.00 to $98.00 and gave the stock a “buy” rating in a report on Friday, December 20th. Royal Bank of Canada raised their target price on shares of CarMax from $92.00 to $99.00 and gave the company an “overweight” rating in a report on Thursday, December 19th. Mizuho upped their price target on shares of CarMax from $72.00 to $80.00 and gave the company a “neutral” rating in a research note on Friday, December 20th. Finally, Stephens started coverage on shares of CarMax in a research note on Thursday, December 5th. They issued an “equal weight” rating and a $86.00 price objective for the company. Three investment analysts have rated the stock with a sell rating, six have given a hold rating and six have issued a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $85.17.

Insider Buying and Selling at CarMax

In other news, CEO William D. Nash sold 120,513 shares of the business’s stock in a transaction on Monday, December 23rd. The shares were sold at an average price of $83.24, for a total transaction of $10,031,502.12. Following the completion of the sale, the chief executive officer now directly owns 181,683 shares of the company’s stock, valued at approximately $15,123,292.92. The trade was a 39.88 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP James Lyski sold 57,986 shares of the firm’s stock in a transaction dated Thursday, January 2nd. The stock was sold at an average price of $81.35, for a total transaction of $4,717,161.10. Following the completion of the transaction, the executive vice president now directly owns 22,803 shares in the company, valued at $1,855,024.05. This represents a 71.77 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 228,744 shares of company stock valued at $18,990,227 in the last quarter. 1.66% of the stock is owned by insiders.

About CarMax

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.