CarMax, Inc. $KMX Shares Sold by Diamond Hill Capital Management LLC Investment Advisor

Diamond Hill Capital Management LLC Investment Advisor reduced its stake in CarMax, Inc. (NYSE:KMX) by 34.1% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,628,905 shares of the company’s stock after selling 841,691 shares during the period. Diamond Hill Capital Management LLC Investment Advisor owned approximately 1.15% of CarMax worth $86,153,000 at the end of the most recent reporting period.

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

CarMax Stock Down 0.1%

KMX stock opened at $59.85 on Monday. 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 $62.56. The company’s 50 day moving average is $54.63 and its two-hundred day moving average is $46.51. The stock has a market cap of $8.49 billion, a P/E ratio of 39.12, a PEG ratio of 2.74 and a beta of 1.15.

CarMax (NYSE:KMX) last issued its earnings results 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. The business had revenue of $8.01 billion during the quarter, compared to analysts’ expectations of $7.42 billion. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The company’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.38 EPS. Research analysts expect that CarMax, Inc. will post 2.73 earnings per share for the current fiscal year.

Trending Headlines about CarMax

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

Insider Buying and Selling at CarMax

In other news, CEO Keith Barr acquired 9,400 shares of CarMax stock in a transaction on Monday, June 22nd. The stock was bought at an average price of $53.01 per share, for a total transaction of $498,294.00. Following the completion of the purchase, the chief executive officer owned 33,375 shares in the company, valued at $1,769,208.75. This represents a 39.21% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Peter J. Bensen purchased 2,500 shares of CarMax stock in a transaction that occurred on Monday, June 22nd. The stock was acquired at an average price of $52.20 per share, with a total value of $130,500.00. Following the transaction, the director owned 24,796 shares in the company, valued at $1,294,351.20. The trade was a 11.21% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 13,900 shares of company stock worth $735,574 over the last 90 days. Corporate insiders own 1.01% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on KMX shares. Barclays upgraded shares of CarMax from an “underweight” rating to an “equal weight” rating and lifted their price target for the stock from $37.00 to $61.00 in a research note on Tuesday, July 21st. UBS Group set a $60.00 price objective on shares of CarMax in a research report on Wednesday, July 29th. Robert W. Baird lifted their price objective on shares of CarMax from $48.00 to $55.00 and gave the stock an “outperform” rating in a research report on Thursday, June 18th. Benchmark reiterated a “hold” rating on shares of CarMax 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 equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, fourteen have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target 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.