Invenomic Capital Management LP Makes New Investment in CarMax, Inc. $KMX

Invenomic Capital Management LP bought a new stake in shares of CarMax, Inc. (NYSE:KMX) in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 78,349 shares of the company’s stock, valued at approximately $3,516,000.

A number of other hedge funds have also recently modified their holdings of the business. CYBER HORNET ETFs LLC bought a new stake in shares of CarMax during the second quarter worth $28,000. MUFG Securities EMEA plc bought a new position in shares of CarMax in the second quarter worth about $30,000. Center for Financial Planning Inc. purchased a new position in CarMax in the 3rd quarter worth about $31,000. Strengthening Families & Communities LLC increased its stake in CarMax by 220.0% in the 3rd quarter. Strengthening Families & Communities LLC now owns 880 shares of the company’s stock worth $39,000 after buying an additional 605 shares during the period. Finally, Smartleaf Asset Management LLC lifted its holdings in CarMax by 121.1% during the 3rd quarter. Smartleaf Asset Management LLC now owns 984 shares of the company’s stock valued at $45,000 after buying an additional 539 shares in the last quarter.

CarMax Price Performance

Shares of KMX opened at $41.70 on Tuesday. The company has a 50 day moving average of $44.42 and a two-hundred day moving average of $44.32. The company has a quick ratio of 0.51, a current ratio of 1.99 and a debt-to-equity ratio of 2.74. CarMax, Inc. has a twelve month low of $30.26 and a twelve month high of $82.79. The company has a market cap of $5.91 billion, a price-to-earnings ratio of 13.76, a price-to-earnings-growth ratio of 0.99 and a beta of 1.35.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Thursday, December 18th. The company reported $0.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.31 by $0.12. CarMax had a return on equity of 7.72% and a net margin of 1.77%.The business had revenue of $5.79 billion for the quarter, compared to the consensus estimate of $5.66 billion. During the same period in the prior year, the firm posted $0.81 earnings per share. The business’s quarterly revenue was down 6.9% on a year-over-year basis. As a group, analysts predict that CarMax, Inc. will post 3.23 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the stock. Evercore set a $42.00 price objective on shares of CarMax in a research report on Tuesday, February 10th. Robert W. Baird raised their target price on shares of CarMax from $44.00 to $48.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 18th. Truist Financial lifted their price target on shares of CarMax from $35.00 to $37.00 and gave the company a “hold” rating in a research note on Thursday, December 18th. Wedbush lowered their price target on CarMax from $40.00 to $36.00 and set a “neutral” rating for the company in a report on Friday, December 19th. Finally, Zacks Research raised CarMax from a “strong sell” rating to a “hold” rating in a research note on Monday, January 5th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have assigned a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and an average target price of $39.21.

CarMax 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.