Diamond Hill Capital Management Inc. Decreases Stock Holdings in CarMax, Inc. $KMX

Diamond Hill Capital Management Inc. lowered its stake in shares of CarMax, Inc. (NYSE:KMX) by 12.9% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 4,210,038 shares of the company’s stock after selling 623,281 shares during the quarter. Diamond Hill Capital Management Inc.’s holdings in CarMax were worth $162,676,000 as of its most recent SEC filing.

Several other hedge funds have also recently modified their holdings of KMX. Arrowstreet Capital Limited Partnership increased its holdings in shares of CarMax by 73.7% during the third quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock valued at $158,074,000 after acquiring an additional 1,494,205 shares in the last quarter. Vulcan Value Partners LLC increased its holdings in shares of CarMax by 135.2% during the third quarter. Vulcan Value Partners LLC now owns 2,328,120 shares of the company’s stock valued at $104,569,000 after acquiring an additional 1,338,134 shares in the last quarter. Hawk Ridge Capital Management LP acquired a new position in shares of CarMax during the third quarter valued at about $43,702,000. Dimensional Fund Advisors LP increased its holdings in shares of CarMax by 33.2% during the third quarter. Dimensional Fund Advisors LP now owns 3,685,201 shares of the company’s stock valued at $165,358,000 after acquiring an additional 918,553 shares in the last quarter. Finally, Worldquant Millennium Advisors LLC increased its holdings in shares of CarMax by 222.2% during the second quarter. Worldquant Millennium Advisors LLC now owns 853,964 shares of the company’s stock valued at $57,395,000 after acquiring an additional 588,901 shares in the last quarter.

CarMax Price Performance

Shares of NYSE:KMX opened at $38.92 on Friday. CarMax, Inc. has a twelve month low of $30.26 and a twelve month high of $71.99. The company’s 50 day moving average is $40.63 and its 200 day moving average is $41.02. The company has a current ratio of 2.20, a quick ratio of 0.49 and a debt-to-equity ratio of 2.93. The company has a market cap of $5.52 billion, a PE ratio of 24.32, a price-to-earnings-growth ratio of 1.41 and a beta of 1.19.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Tuesday, April 14th. The company reported $0.34 earnings per share 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 company had revenue of $5.95 billion for the quarter, compared to the consensus estimate of $5.65 billion. During the same quarter in the prior year, the company earned $0.58 EPS. CarMax’s quarterly revenue was down 1.0% on a year-over-year basis. On average, sell-side analysts forecast that CarMax, Inc. will post 2.3 EPS for the current year.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on KMX shares. Barclays cut their price objective on shares of CarMax from $28.00 to $26.00 and set an “underweight” rating on the stock in a report on Thursday, April 16th. Wall Street Zen downgraded shares of CarMax from a “hold” rating to a “sell” rating in a report on Saturday, April 18th. Royal Bank Of Canada restated a “sector perform” rating and set a $41.00 price objective on shares of CarMax in a report on Wednesday, April 15th. Stephens upped their price objective on shares of CarMax from $39.00 to $43.00 and gave the company an “equal weight” rating in a report on Thursday, April 2nd. Finally, Evercore set a $45.00 price objective on shares of CarMax in a report on Friday, April 10th. One equities research analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, CarMax has an average rating of “Reduce” and an average price target of $41.21.

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.