Should You Now Sell CarMax (KMX)?

Weitz Investment Management, an investment management firm, released its “Hickory Fund” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -9.07% compared to a -3.44% return for the Russell Midcap index. The third-quarter returns declined due to investors’ perception of anticipated Federal Reserve policy actions. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Weitz Investment Management discussed stocks like CarMax, Inc. (NYSE:KMX) in the Q3 2022 investor letter. Based in Richmond, Virginia, CarMax, Inc. (NYSE:KMX) is a US-based used vehicle retailer. On October 26, 2022, CarMax, Inc. (NYSE:KMX) stock closed at $61.55 per share. One-month return of CarMax, Inc. (NYSE:KMX) was -5.54% and its shares lost 54.78% of their value over the last 52 weeks. CarMax, Inc. (NYSE:KMX) has a market capitalization of $9.726 billion.

Weitz Investment Management made the following comment about CarMax, Inc. (NYSE:KMX) in its Q3 2022 investor letter:

“CarMax, Inc. (NYSE:KMX) and Liberty Global were also detractors during the quarter and year-to-date. In Carmax’s case, after a period of sharply rising used car prices, affordability took another hit as would-be buyers now face higher borrowing costs for auto loans. The industry at large will need to digest this reset, but as the largest scaled player, and with a growing set of omnichannel tools, we believe Carmax is poised to not only weather the storm but to continue to grow market share.”

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CarMax, Inc. (NYSE:KMX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held CarMax, Inc. (NYSE:KMX) at the end of the second quarter which was 27 in the previous quarter.

We discussed CarMax, Inc. (NYSE:KMX) in another article and shared Alphyn Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.