Diamond Hill Capital Management Inc. Sells 86,233 Shares of CarMax, Inc. (NYSE:KMX)

Diamond Hill Capital Management Inc. decreased its stake in shares of CarMax, Inc. (NYSE:KMX) by 1.4% during the fourth quarter, HoldingsChannel.com reports. The fund owned 6,221,688 shares of the company’s stock after selling 86,233 shares during the period. CarMax makes up 2.2% of Diamond Hill Capital Management Inc.’s holdings, making the stock its 10th largest position. Diamond Hill Capital Management Inc.’s holdings in CarMax were worth $508,685,000 at the end of the most recent quarter.

Other hedge funds have also recently added to or reduced their stakes in the company. First Hawaiian Bank bought a new stake in CarMax during the 4th quarter valued at approximately $273,000. World Investment Advisors LLC bought a new stake in CarMax during the 3rd quarter valued at approximately $6,942,000. Jones Financial Companies Lllp boosted its stake in CarMax by 36.6% during the 4th quarter. Jones Financial Companies Lllp now owns 5,211 shares of the company’s stock valued at $426,000 after purchasing an additional 1,396 shares during the period. Sumitomo Mitsui Trust Group Inc. boosted its stake in CarMax by 3.2% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 351,361 shares of the company’s stock valued at $27,188,000 after purchasing an additional 10,898 shares during the period. Finally, HF Advisory Group LLC boosted its stake in CarMax by 12.6% during the 4th quarter. HF Advisory Group LLC now owns 28,793 shares of the company’s stock valued at $2,354,000 after purchasing an additional 3,222 shares during the period.

Insider Activity

In other news, EVP Mohammad Shamim sold 10,000 shares of the firm’s stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $83.77, for a total value of $837,700.00. Following the transaction, the executive vice president now directly owns 11,738 shares in the company, valued at $983,292.26. This trade represents a 46.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Tyler Tuite sold 4,869 shares of the firm’s stock in a transaction on Tuesday, January 28th. The stock was sold at an average price of $84.58, for a total value of $411,820.02. Following the completion of the transaction, the senior vice president now owns 227 shares in the company, valued at $19,199.66. This represents a 95.55 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 264,467 shares of company stock valued at $21,915,445. Company insiders own 1.66% of the company’s stock.

CarMax Trading Down 4.6 %

KMX stock opened at $69.18 on Friday. The business has a fifty day moving average price of $82.22 and a 200 day moving average price of $80.15. CarMax, Inc. has a fifty-two week low of $65.83 and a fifty-two week high of $91.25. The stock has a market capitalization of $10.64 billion, a price-to-earnings ratio of 23.45, a P/E/G ratio of 1.67 and a beta of 1.76. The company has a debt-to-equity ratio of 2.92, a current ratio of 2.30 and a quick ratio of 0.55.

CarMax (NYSE:KMX) last released its quarterly earnings results on Thursday, December 19th. The company reported $0.81 earnings per share for the quarter, beating analysts’ consensus estimates of $0.62 by $0.19. CarMax had a return on equity of 7.49% and a net margin of 1.77%. The firm had revenue of $6.22 billion during the quarter, compared to analysts’ expectations of $6.05 billion. During the same period last year, the firm posted $0.52 EPS. The business’s revenue was up 1.2% on a year-over-year basis. Analysts expect that CarMax, Inc. will post 3.23 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts have commented on KMX shares. Truist Financial raised their price objective on CarMax from $72.00 to $88.00 and gave the stock a “hold” rating in a research report on Friday, December 20th. Evercore ISI reduced their price objective on CarMax from $107.00 to $105.00 and set an “outperform” rating for the company in a research report on Tuesday. Royal Bank of Canada increased their target price on CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a report on Thursday, December 19th. Mizuho increased their target price on CarMax from $72.00 to $80.00 and gave the stock a “neutral” rating in a report on Friday, December 20th. Finally, StockNews.com raised CarMax from a “sell” rating to a “hold” rating in a report on Friday, December 20th. Two analysts have rated the stock with a sell rating, five have assigned a hold rating and seven have issued a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $90.45.

CarMax Profile

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.