Gagnon Securities LLC Has $17.21 Million Stake in CarMax, Inc. $KMX

Gagnon Securities LLC raised its stake in shares of CarMax, Inc. (NYSE:KMX) by 5.1% in the 2nd quarter, according to its most recent disclosure with the SEC. The firm owned 325,410 shares of the company’s stock after purchasing an additional 15,711 shares during the period. CarMax accounts for about 3.3% of Gagnon Securities LLC’s investment portfolio, making the stock its 10th biggest holding. Gagnon Securities LLC’s holdings in CarMax were worth $17,211,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Bessemer Group Inc. increased its holdings in CarMax by 28.1% in the 1st quarter. Bessemer Group Inc. now owns 156,121 shares of the company’s stock worth $6,491,000 after acquiring an additional 34,211 shares in the last quarter. Bank of America Corp DE raised its stake in CarMax by 61.7% during the 1st quarter. Bank of America Corp DE now owns 1,687,359 shares of the company’s stock worth $70,160,000 after acquiring an additional 643,834 shares during the period. Convergence Investment Partners LLC purchased a new position in CarMax during the first quarter valued at approximately $1,688,000. BML Capital Management LLC purchased a new position in CarMax during the fourth quarter valued at approximately $5,989,000. Finally, Louisiana State Employees Retirement System bought a new position in shares of CarMax in the first quarter worth approximately $2,615,000.

CarMax Trading Down 0.3%

KMX stock opened at $59.85 on Friday. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82. CarMax, Inc. has a 1-year low of $30.26 and a 1-year high of $62.56. The business has a 50 day simple moving average of $54.63 and a two-hundred day simple moving average of $46.50. The company has a market capitalization of $8.49 billion, a price-to-earnings ratio of 39.12, a PEG ratio of 2.74 and a beta of 1.15.

CarMax (NYSE:KMX) last released its quarterly earnings data on Wednesday, June 17th. The company reported $1.31 earnings per share (EPS) for the quarter, beating the consensus estimate 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 quarter last year, the business posted $1.38 earnings per share. The company’s revenue for the quarter was up 6.2% compared to the same quarter last year. Research analysts anticipate that CarMax, Inc. will post 2.73 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on KMX. Morgan Stanley increased their price objective on shares of CarMax from $35.00 to $44.00 and gave the stock an “equal weight” rating in a research note on Tuesday, June 23rd. Barclays upgraded shares of CarMax from an “underweight” rating to an “equal weight” rating and lifted their target price for the company from $37.00 to $61.00 in a research note on Tuesday, July 21st. Truist Financial upped their target price on shares of CarMax from $47.00 to $50.00 and gave the stock a “hold” rating in a report on Thursday, June 18th. Stephens upgraded CarMax from an “equal weight” rating to an “overweight” rating and set a $66.00 price target for the company in a research note on Thursday, June 18th. Finally, Zacks Research raised CarMax from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 11th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, fourteen have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, CarMax has a consensus rating of “Hold” and a consensus target price of $51.00.

Insider Buying and Selling

In related news, Director Sona Chawla purchased 2,000 shares of the firm’s stock in a transaction on Thursday, June 25th. The shares were acquired at an average price of $53.39 per share, for a total transaction of $106,780.00. Following the purchase, the director directly owned 21,702 shares in the company, valued at $1,158,669.78. This trade represents a 10.15% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Peter J. Bensen purchased 2,500 shares of the firm’s stock in a transaction on Monday, June 22nd. The stock was bought at an average price of $52.20 per share, for a total transaction of $130,500.00. Following the purchase, the director owned 24,796 shares in the company, valued at approximately $1,294,351.20. This represents a 11.21% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders purchased 13,900 shares of company stock worth $735,574. 1.01% of the stock is owned by insiders.

CarMax News Roundup

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Zacks upgraded CarMax from “Hold” to “Strong Buy.” The firm raised multiple EPS forecasts, including estimates for FY2028 to $3.11 from $2.96 and FY2029 to $3.90 from $3.21. It also increased quarterly projections for Q1 2028, Q2 2028, Q3 2028, Q4 2028 and Q1 2029, signaling improving expectations for the used-car retailer’s longer-term earnings power. Zacks upgrade and earnings estimates
• Neutral Sentiment: CarMax’s latest reported quarter provides fundamental support: revenue increased 6.2% year over year to $8.01 billion and earnings of $1.31 per share exceeded the $0.96 analyst consensus. However, earnings were below the $1.38 per share reported in the prior-year period, and the company’s current-year consensus EPS estimate remains $2.73.
• Negative Sentiment: One valuation analysis says CarMax stock looks stretched following a 53% five-year slump and subsequent recovery. With shares near their 52-week high and trading at roughly 39 times earnings, investors may be concerned that the current valuation already discounts much of the expected improvement. CarMax stock looks stretched after a 53% five-year slump
• Negative Sentiment: A separate analysis concludes that CarMax could be approximately 7% above fair value, citing the impact of a leadership change. This raises the risk that the stock’s recent gains have outpaced its underlying fundamentals and could limit further upside. CarMax could be 7% above fair value on leadership change

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.