Merit Financial Group LLC Reduces Holdings in CarMax, Inc. $KMX

Merit Financial Group LLC cut its stake in CarMax, Inc. (NYSE:KMX) by 56.6% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 13,347 shares of the company’s stock after selling 17,426 shares during the period. Merit Financial Group LLC’s holdings in CarMax were worth $599,000 as of its most recent SEC filing.

Several other large investors also recently bought and sold shares of the stock. AQR Capital Management LLC increased its position in shares of CarMax by 195.3% during the second quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company’s stock worth $298,107,000 after purchasing an additional 2,947,996 shares in the last quarter. Baird Financial Group Inc. increased its position in CarMax by 6.6% during the second quarter. Baird Financial Group Inc. now owns 3,298,113 shares of the company’s stock worth $221,666,000 after buying an additional 204,481 shares during the period. Norges Bank purchased a new stake in CarMax in the second quarter valued at approximately $208,144,000. Invesco Ltd. lifted its stake in CarMax by 4.7% in the second quarter. Invesco Ltd. now owns 2,998,928 shares of the company’s stock valued at $201,558,000 after buying an additional 135,334 shares during the last quarter. Finally, First Pacific Advisors LP boosted its holdings in shares of CarMax by 0.6% in the second quarter. First Pacific Advisors LP now owns 2,431,244 shares of the company’s stock valued at $163,404,000 after acquiring an additional 15,270 shares during the period.

CarMax Stock Down 2.2%

CarMax stock opened at $44.64 on Friday. The stock’s 50 day moving average price is $43.44 and its 200 day moving average price is $46.36. CarMax, Inc. has a 1-year low of $30.26 and a 1-year high of $87.70. The company has a market cap of $6.33 billion, a PE ratio of 14.73, a price-to-earnings-growth ratio of 1.09 and a beta of 1.35. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.99 and a quick ratio of 0.51.

CarMax (NYSE:KMX) last released its earnings results on Thursday, December 18th. The company reported $0.43 EPS 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 company had revenue of $5.79 billion during the quarter, compared to the consensus estimate of $5.66 billion. During the same quarter last year, the company earned $0.81 earnings per share. CarMax’s quarterly revenue was down 6.9% compared to the same quarter last year. On average, sell-side analysts predict that CarMax, Inc. will post 3.23 EPS for the current fiscal year.

Analyst Ratings Changes

Several analysts recently commented on KMX shares. William Blair downgraded shares of CarMax from an “outperform” rating to a “market perform” rating in a research report on Thursday, November 6th. Mizuho reduced their target price on shares of CarMax from $46.00 to $36.00 and set a “neutral” rating for the company in a report on Friday, December 19th. Bank of America increased their target price on shares of CarMax from $27.00 to $31.00 and gave the stock an “underperform” rating in a research note on Friday, December 19th. Benchmark restated a “hold” rating on shares of CarMax in a research report on Tuesday, December 16th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of CarMax in a research report on Friday, January 9th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twelve have given a Hold rating and five have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, CarMax has an average rating of “Reduce” and an average price target of $39.21.

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.