Jupiter Topco LLC Makes New $245.68 Million Investment in CarMax, Inc. $KMX

Jupiter Topco LLC purchased a new position in shares of CarMax, Inc. (NYSE:KMX) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 4,645,036 shares of the company’s stock, valued at approximately $245,676,000.

Other large investors have also made changes to their positions in the company. SRS Investment Management LLC lifted its stake in shares of CarMax by 1,717.5% in the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock valued at $217,845,000 after purchasing an additional 5,327,603 shares during the period. AQR Capital Management LLC grew its position in 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 buying an additional 4,780,903 shares during the period. Primecap Management Co. CA acquired a new position in CarMax during the second quarter worth about $230,548,000. Norges Bank purchased a new position in CarMax in the fourth quarter valued at about $159,232,000. Finally, The Manufacturers Life Insurance Company purchased a new position in CarMax in the second quarter valued at about $128,001,000.

Insider Transactions at CarMax

In related news, Director Sona Chawla bought 2,000 shares of the company’s stock in a transaction that occurred on Thursday, June 25th. The shares were acquired at an average cost of $53.39 per share, for a total transaction of $106,780.00. Following the acquisition, the director owned 21,702 shares in the company, valued at $1,158,669.78. This represents a 10.15% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Peter J. Bensen acquired 2,500 shares of the stock in a transaction on Monday, June 22nd. The stock was purchased at an average cost of $52.20 per share, with a total value of $130,500.00. Following the transaction, the director directly owned 24,796 shares of the company’s stock, valued at $1,294,351.20. This represents a 11.21% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders purchased 13,900 shares of company stock valued at $735,574 over the last quarter. Company insiders own 1.01% of the company’s stock.

CarMax Price Performance

Shares of CarMax stock opened at $63.82 on Thursday. The company has a current ratio of 2.70, a quick ratio of 0.82 and a debt-to-equity ratio of 2.87. CarMax, Inc. has a twelve month low of $30.26 and a twelve month high of $65.28. The stock has a market capitalization of $9.06 billion, a P/E ratio of 41.71, a PEG ratio of 2.94 and a beta of 1.15. The business’s fifty day moving average price is $56.44 and its 200 day moving average price is $47.37.

CarMax (NYSE:KMX) last announced its quarterly earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, beating analysts’ consensus estimates of $0.96 by $0.35. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The firm had revenue of $8.01 billion for the quarter, compared to analysts’ expectations of $7.42 billion. During the same period in the previous year, the company posted $1.38 earnings per share. CarMax’s revenue was up 6.2% compared to the same quarter last year. As a group, research analysts anticipate that CarMax, Inc. will post 2.73 earnings per share for the current year.

Analysts Set New Price Targets

KMX has been the topic of several research analyst reports. Stephens raised CarMax from an “equal weight” rating to an “overweight” rating and set a $66.00 price target on the stock in a research note on Thursday, June 18th. Zacks Research raised CarMax from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 11th. Bank of America lifted their price target on CarMax from $40.00 to $45.00 and gave the stock an “underperform” rating in a research note on Wednesday, June 17th. Mizuho lifted their price objective on CarMax from $38.00 to $43.00 and gave the stock a “neutral” rating in a research report on Thursday, June 18th. Finally, Morgan Stanley upped their target price on shares of CarMax from $35.00 to $44.00 and gave the company an “equal weight” rating in a report on Tuesday, June 23rd. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, fourteen have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $51.00.

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.