Farley Capital L.P. Makes New Investment in CarMax, Inc. $KMX

Farley Capital L.P. purchased a new position in shares of CarMax, Inc. (NYSE:KMX) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 20,257 shares of the company’s stock, valued at approximately $1,361,000. CarMax comprises about 1.1% of Farley Capital L.P.’s portfolio, making the stock its 10th largest position.

Other institutional investors also recently bought and sold shares of the company. Forum Financial Management LP increased its position in shares of CarMax by 15.0% in the 2nd quarter. Forum Financial Management LP now owns 5,338 shares of the company’s stock valued at $359,000 after acquiring an additional 697 shares during the period. Parcion Private Wealth LLC purchased a new position in CarMax during the second quarter valued at approximately $235,000. Brookstone Capital Management increased its holdings in shares of CarMax by 6.2% during the 2nd quarter. Brookstone Capital Management now owns 4,324 shares of the company’s stock valued at $291,000 after purchasing an additional 252 shares in the last quarter. D.A. Davidson & CO. raised its position in shares of CarMax by 5.4% in the second quarter. D.A. Davidson & CO. now owns 12,866 shares of the company’s stock worth $865,000 after acquiring an additional 663 shares during the period. Finally, Greenup Street Wealth Management LLC raised its holdings in CarMax by 2.0% in the 2nd quarter. Greenup Street Wealth Management LLC now owns 31,488 shares of the company’s stock worth $2,116,000 after purchasing an additional 631 shares during the period.

CarMax Stock Performance

Shares of KMX stock opened at $43.79 on Thursday. The company has a market cap of $6.43 billion, a P/E ratio of 12.84, a PEG ratio of 0.85 and a beta of 1.27. The firm has a fifty day moving average price of $53.68 and a 200 day moving average price of $61.13. The company has a current ratio of 2.46, a quick ratio of 1.06 and a debt-to-equity ratio of 2.87. CarMax, Inc. has a 12 month low of $42.34 and a 12 month high of $91.25.

CarMax (NYSE:KMX) last announced its quarterly earnings results on Thursday, September 25th. The company reported $0.64 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.03 by ($0.39). CarMax had a return on equity of 8.51% and a net margin of 1.98%.The business had revenue of $6.59 billion for the quarter, compared to analysts’ expectations of $7.07 billion. During the same period last year, the firm earned $0.85 earnings per share. The firm’s quarterly revenue was down 6.0% on a year-over-year basis. Sell-side analysts predict that CarMax, Inc. will post 3.23 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on KMX shares. Evercore ISI reissued an “in-line” rating and issued a $52.00 price target (down previously from $80.00) on shares of CarMax in a research note on Friday, September 26th. Zacks Research downgraded CarMax from a “hold” rating to a “strong sell” rating in a research report on Thursday, October 2nd. Truist Financial reduced their target price on shares of CarMax from $74.00 to $47.00 and set a “hold” rating on the stock in a research note on Friday, September 26th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of CarMax in a research note on Tuesday, October 14th. Finally, Mizuho lowered their price objective on shares of CarMax from $78.00 to $46.00 and set a “neutral” rating for the company in a research report on Thursday, October 16th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $51.75.

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.