Framtiden Holdings Management Co LLC purchased a new stake in shares of CarMax, Inc. (NYSE:KMX – Free Report) in the 4th quarter, HoldingsChannel.com reports. The firm purchased 540,000 shares of the company’s stock, valued at approximately $20,866,000. CarMax comprises approximately 22.6% of Framtiden Holdings Management Co LLC’s holdings, making the stock its largest holding.
Several other institutional investors have also recently made changes to their positions in the company. SRS Investment Management LLC raised its holdings in CarMax by 1,717.5% in the 4th quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock worth $217,845,000 after purchasing an additional 5,327,603 shares during the period. AQR Capital Management LLC increased its stake in shares of CarMax by 151.8% during the fourth quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock worth $306,429,000 after purchasing an additional 4,780,903 shares in the last quarter. Norges Bank acquired a new position in shares of CarMax during the 4th quarter worth about $159,232,000. Arrowstreet Capital Limited Partnership lifted its stake in CarMax by 73.7% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock valued at $158,074,000 after buying an additional 1,494,205 shares in the last quarter. Finally, Vulcan Value Partners LLC lifted its stake in CarMax by 135.2% in the 3rd quarter. Vulcan Value Partners LLC now owns 2,328,120 shares of the company’s stock valued at $104,569,000 after buying an additional 1,338,134 shares in the last quarter.
Wall Street Analyst Weigh In
KMX has been the subject of several research reports. Benchmark reiterated a “hold” rating on shares of CarMax in a research note on Thursday. Evercore set a $45.00 target price on CarMax in a research report on Friday, April 10th. Robert W. Baird lifted their price target on CarMax from $48.00 to $55.00 and gave the stock an “outperform” rating in a research note on Thursday. Mizuho boosted their price target on CarMax from $38.00 to $43.00 and gave the stock a “neutral” rating in a research report on Thursday. Finally, UBS Group assumed coverage on CarMax in a research note on Wednesday, May 27th. They issued a “neutral” rating and a $42.00 price objective for the company. Two analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus target price of $46.13.
CarMax Stock Performance
KMX opened at $53.54 on Friday. CarMax, Inc. has a twelve month low of $30.26 and a twelve month high of $71.99. The firm has a market capitalization of $7.59 billion, a PE ratio of 34.99, a PEG ratio of 1.79 and a beta of 1.21. The company has a current ratio of 2.70, a quick ratio of 0.49 and a debt-to-equity ratio of 2.87. The firm’s 50-day moving average price is $42.56 and its 200 day moving average price is $42.56.
CarMax (NYSE:KMX – Get Free Report) last released its earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, topping analysts’ consensus estimates of $0.96 by $0.35. The business had revenue of $8.01 billion for the quarter, compared to analyst estimates of $7.42 billion. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The business’s revenue was up 6.2% on a year-over-year basis. During the same period last year, the company posted $1.38 EPS. As a group, sell-side analysts expect that CarMax, Inc. will post 2.31 EPS for the current fiscal year.
Key Stories Impacting CarMax
Here are the key news stories impacting CarMax this week:
- Positive Sentiment: CarMax reported fiscal Q1 adjusted EPS of $1.31 and revenue of $8.01 billion, both above analyst estimates, with revenue up 6.2% year over year. CarMax Reports First Quarter Fiscal 2027 Results
- Positive Sentiment: Several analysts turned more constructive after the report, including Stephens upgrading the stock to overweight and raising its price target to $66, while Mizuho and JPMorgan also lifted targets. CarMax Analysts Boost Their Forecasts After Upbeat Q1 Results
- Positive Sentiment: Investors reacted favorably to signs that CarMax is gaining traction on its turnaround plan, with higher wholesale demand and improved sales momentum helping support the rebound in the stock. Reuters article
- Neutral Sentiment: Management emphasized that the recovery will take time, and some analysts said they still want more evidence that profitability can improve consistently before becoming fully bullish. CNBC article
- Negative Sentiment: Profitability remains under pressure, with gross profit per vehicle and net income down year over year as CarMax used pricing actions to drive sales, which keeps margin concerns in focus. Wall Street Journal article
- Negative Sentiment: Despite the upbeat earnings report, some investors remain cautious because CarMax still faces margin compression, credit-risk concerns, and a lengthy turnaround timeline under new CEO Keith Barr. Motley Fool article
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.
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