In a recent move by the eminent Sheaff Brock Investment Advisors LLC, a new stake has been purchased in CarMax, Inc. (NYSE:KMX) during the 1st quarter of this year. This substantial investment indicates the trust bestowed upon CarMax and highlights its potential for growth in the used vehicle retail sector. The institutional investor procured 3,205 shares of CarMax’s stock during this acquisition process, which is valued at approximately $206,000.
CarMax, Inc., along with its subsidiaries, operates as one of the leading used vehicle retailers in the United States. With operations divided into two distinct segments – CarMax Sales Operations and CarMax Auto Finance – the company provides customers with an extensive range of makes and models of used vehicles. These offerings encompass various categories such as domestic, imported, luxury vehicles, as well as hybrid and electric vehicles. Moreover, CarMax provides customers with extended protection plans at the time of purchase. Additionally, it engages in wholesaling vehicles that are roughly a decade old and have traveled over 100,000 miles.
Market analysts have also provided their insights on CarMax’s performance and future prospects. Several equities analysts have shared their expert opinions on KMX shares in recent times regarding their price targets and overall evaluations of the stock’s potential. In a notable research report published by Robert W. Baird on April 12th this year, they upped their price target on shares of CarMax from $65.00 to $80.00—an encouraging sign for investors seeking capital appreciation.
Another influential financial institution contributing its opinion is JPMorgan Chase & Co., which had initially set a price target for CarMax at $55.00 but then increased it to $60.00 on June 26th of this year.
Royal Bank of Canada also positively reassessed CarMax with their upward revision of the stock’s price target from $70.00 to $90.00 on June 26th, further demonstrating the positive sentiment towards the company.
Evercore ISI, known for its expertise in investment research, followed suit by increasing their target price on CarMax shares from $76.00 to $83.00 in a research report published on the same day.
The final addition to this chorus of expert opinions is Truist Financial who raised their price target from $64.00 to an impressive $82.00 on June 26th.
These cumulative evaluations provide insight into various perspectives and reflect CarMax’s current standing among renowned financial institutions. While three analysts have issued a sell rating and six others have given it a hold rating, four analysts hold a buy rating for the stock. Based on data from Bloomberg, it can be inferred that the stock currently has a consensus rating of “Hold” with a consensus estimated price target of around $76.00.
As of July 20, 2023, CarMax continues to make its mark as one of the leading used vehicle retailers in the United States owing to its wide range of offerings and strong financial backing from institutional investors like Sheaff Brock Investment Advisors LLC. The company’s commitment to customer satisfaction combined with positive market evaluations exhibits promising prospects for future growth and reinforces investor confidence in CarMax’s long-term potential within the auto retail industry.
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CarMax Sees Hedge Fund Activity and Strong Financial Performance, Cementing Its Position as a Top Investment in the Used Car Market
CarMax, Inc, a leading retailer of used vehicles in the United States, has recently seen a number of hedge funds either increase or decrease their stakes in the company. This activity reflects the ongoing interest and investment in the automotive industry, particularly in the used car market.
One noteworthy addition to CarMax’s shareholders is Diamond Hill Capital Management Inc., which recently acquired a new stake in the company during the fourth quarter of 2022. The value of this stake amounts to an impressive $327.96 million, indicating a strong belief in CarMax’s potential for future growth.
Similarly, Norges Bank also entered the scene during the same quarter with a new position valued at approximately $99.73 million. This significant investment from one of the largest sovereign wealth funds globally further emphasizes CarMax’s appeal as a lucrative investment opportunity.
Additionally, Wellington Management Group LLP increased its position in CarMax by 29.4% during the first quarter of 2023. With an additional 805,438 shares purchased, Wellington now holds approximately 3.5 million shares worth $342.4 million.
Renaissance Technologies LLC also joined the ranks of CarMax shareholders by increasing its holdings by an astonishing 562.7% during the fourth quarter of last year. The firm now owns nearly 900,000 shares worth $54.03 million.
Lastly, Fiduciary Management Inc. WI raised its position in CarMax by 27.2% during the same period and now holds more than 3 million shares valued at $200.45 million.
These recent moves by prominent hedge funds underscore their confidence in CarMax’s prospects and reaffirm its status as an attractive investment avenue among industry insiders.
In other news related to CarMax, some key members of its top management have been involved in stock transactions recently. Chief Marketing Officer James Lyski sold 67,345 shares on July 12th at an average price of $84.27, resulting in a total transaction value of $5.68 million. Meanwhile, on July 3rd, CEO William D. Nash sold 170,646 shares at an average price of $82.57, amounting to a total transaction value of $14.09 million.
These transactions highlight the profit-taking activities undertaken by certain executives while also indicating their belief in the current state and future prospects of CarMax’s stock.
CarMax operates in two segments: CarMax Sales Operations and CarMax Auto Finance. It offers a wide range of used vehicles to customers across various makes and models, including domestic, imported, luxury, and hybrid/electric vehicles. The company also provides extended protection plans and sells older vehicles with significant mileage through wholesale auctions.
On Thursday, CarMax shares opened at $85.19. The company boasts a current ratio of 2.54 and a quick ratio of 0.61, reflecting its solid financial position and ability to meet short-term obligations efficiently. CarMax also maintains a favorable debt-to-equity ratio of 3.12.
With a market capitalization of $13.48 billion, CarMax has demonstrated resilience in the face of economic challenges and market fluctuations over the past year. This achievement is reflected in its stock’s performance, which reached a 1-year high of $106.24.
In terms of financial performance, CarMax reported impressive earnings per share (EPS) results for its most recent quarter ended June 23rd, exceeding analysts’ expectations significantly. The company posted an EPS of $1.44 compared to the consensus estimate of $0.79 per share—a remarkable beat by $0.65.
CarMax’s net margin stood at 1.64%, showcasing its ability to generate profits despite challenging market conditions during the same period last year when it posted EPS of $1.56.
Furthermore, the company reported revenue of $7.69 billion for the quarter, surpassing the consensus estimate of $7.49 billion. Although this figure represented a decline compared to the same quarter last year, CarMax’s performance demonstrated its resilience in the face of adversity.
Analysts forecast that CarMax will achieve an EPS of 2.98 for the current fiscal year, further contributing to the positive sentiment surrounding the company’s future growth prospects.
In conclusion, CarMax continues to attract attention from prominent hedge funds and investors who recognize its potential within the used car market. With recent notable additions and adjustments to their holdings, as well as impressive financial performance, CarMax presents itself as a compelling investment opportunity for those seeking exposure to the automobile industry.
