CarMax, Inc. $KMX is Rings Capital Management LLC’s 2nd Largest Position

Rings Capital Management LLC grew its holdings in shares of CarMax, Inc. (NYSE:KMX) by 71.6% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,074,000 shares of the company’s stock after acquiring an additional 448,000 shares during the period. CarMax comprises about 22.6% of Rings Capital Management LLC’s investment portfolio, making the stock its 2nd biggest holding. Rings Capital Management LLC’s holdings in CarMax were worth $48,190,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the business. AQR Capital Management LLC lifted its stake in shares of CarMax by 195.3% in the second quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company’s stock worth $298,107,000 after acquiring an additional 2,947,996 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in CarMax by 33.2% during the 3rd quarter. Dimensional Fund Advisors LP now owns 3,685,201 shares of the company’s stock valued at $165,358,000 after purchasing an additional 918,553 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in CarMax by 73.7% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock valued at $158,074,000 after purchasing an additional 1,494,205 shares in the last quarter. Invesco Ltd. increased its holdings in CarMax by 14.2% during the 3rd quarter. Invesco Ltd. now owns 3,425,737 shares of the company’s stock worth $153,713,000 after purchasing an additional 426,809 shares during the last quarter. Finally, Baird Financial Group Inc. increased its holdings in CarMax by 6.6% during the 2nd quarter. Baird Financial Group Inc. now owns 3,298,113 shares of the company’s stock worth $221,666,000 after purchasing an additional 204,481 shares during the last quarter.

Analysts Set New Price Targets

Several equities analysts have recently commented on KMX shares. Royal Bank Of Canada increased their target price on CarMax from $34.00 to $37.00 and gave the company a “sector perform” rating in a research note on Friday, December 19th. Wedbush dropped their price target on shares of CarMax from $40.00 to $36.00 and set a “neutral” rating for the company in a research note on Friday, December 19th. JPMorgan Chase & Co. cut their price target on shares of CarMax from $30.00 to $28.00 and set an “underweight” rating on the stock in a report on Friday, December 19th. Barclays increased their price objective on shares of CarMax from $24.00 to $28.00 and gave the company an “underweight” rating in a research note on Wednesday, January 21st. Finally, Truist Financial raised their price objective on shares of CarMax from $35.00 to $37.00 and gave the stock a “hold” rating in a report on Thursday, December 18th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have given a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and a consensus target price of $39.21.

CarMax Price Performance

Shares of KMX opened at $41.86 on Friday. The firm has a market cap of $5.94 billion, a price-to-earnings ratio of 13.82, a PEG ratio of 0.98 and a beta of 1.35. The stock has a 50 day moving average of $44.39 and a 200-day moving average of $44.70. The company has a current ratio of 1.99, a quick ratio of 0.51 and a debt-to-equity ratio of 2.74. CarMax, Inc. has a 52 week low of $30.26 and a 52 week high of $82.79.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Thursday, December 18th. The company reported $0.43 earnings per share for the quarter, beating 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 during the quarter, compared to the consensus estimate of $5.66 billion. During the same period in the previous year, the business earned $0.81 EPS. The business’s quarterly revenue was down 6.9% on a year-over-year basis. As a group, analysts forecast that CarMax, Inc. will post 3.23 EPS for the current year.

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.