Is CarMax Inc. (KMX) Price Targeted To Increase?

At the last check on Friday, CarMax Inc.’s (NYSE:KMX) stock was up $2.48, moving up 2.72 percent to $93.74. The average number of shares traded per day over the past five days has been 1,841,728 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.66 fall in that time frame. In the last twenty days, the average volume was 1,913,822, while in the previous 50 days, it was 1,970,721.

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Since last month, KMX stock retreated -2.22%. Shares of the company fell to $85.36 on 05/02/22, the lowest level in the past month. A 52-week high of $155.98 was reached on 01/03/22 after having rallying from a 52-week low of $85.36. Since the beginning of this year, KMX’s stock price has dropped by -29.92% or -$36.19, and marked a new high 1 time. However, the stock has declined by -39.90% since its 52-week high.

CarMax Inc. (KMX) last reported insider trading activity 134 days ago on Dec 30. Wilson Charles Joseph, the SVP of the company, disposed of 16,059 shares for $127.48 on Dec 30. It resulted in a $2,047,201 divestment by the insider. Lyski James sold 63,129 shares at an average price of $139.54 on Aug 03. The insider now owns 15,955 shares following the transaction. On Jul 21, EVP and CITO Shamim Mohammad sold 22,434 shares at $135.64 apiece. The transaction was valued at $3,042,945.

Valuation Metrics

Right now, CarMax Inc. (KMX) has a P/E ratio of about 13.12. The stock’s beta is 1.43. Besides these, the trailing price-to-sales (P/S) ratio of 0.45, the price-to-book (PB) ratio of 2.81.

Financial Health

In the three months ended February 27, CarMax Inc.’s quick ratio stood at 0.70, while its current ratio was 3.20, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending February 27 was 3.50, and the total debt-to-equity ratio was 3.60. On the profitability front, the trailing twelve-month gross margin is 10.30% percent. In the year ended February 27, operating margins totaled 4.70%. Based on annual data, KMX earned $3.29 billion in gross profit and brought in $31.9 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 4.80%. Return on equity (ROE) for the past 12 months was 23.10%.

In CarMax Inc.’s quarter-end financial report for February 27, it reported total debt of $14.92 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. KMX’s revenue rose 32.82% to $8.53 billion during the quarter, while net income inched up to $7.69 billion. While analysts expected CarMax Inc. to report $1.25 quarterly earnings, the actual figure was $0.98 per share, beating the consensus estimate by -21.60%. During the quarter, the company generated $301.35 million in EBITDA. The liabilities of CarMax Inc. were 21.1 billion at the end of its most recent quarter ended February 27, and its total debt was $19.43 billion. The value of shareholders’ equity is $160.54 million.

Technical Picture

This quick technical analysis looks at CarMax Inc.’s (KMX) price momentum. With a historical volatility rate of 62.38%, the RSI 9-day stood at 52.88% on 12 May.

With respect to its five-day moving average, the current CarMax Inc. price is down by -0.70% percent or -$0.66. At present, KMX shares trade +2.45% above its 20-day simple moving average and -28.62% percent below its 100-day simple moving average. However, the stock is currently trading approximately -10.00% below its SMA50 and -30.33% below its SMA200.

Stochastic coefficient K was 42.29% and Stochastic coefficient D was 40.74%, while ATR was 4.94. Given the Stochastic reading of 57.92% for the 14-day period, the RSI (14) reading has been calculated as 50.24%. As of today, the MACD Oscillator reading stands at -1.91, while the 14-day reading stands at -0.14.

Analyst Ratings

Needham launched its rating on CarMax Inc. (NYSE: KMX) to a Hold in a note to investors on May 02, 2022. CarMax Inc. (KMX) has been rated Overweight by analysts. According to 1 brokerage firm, KMX is a sell, and 7 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 3 analysts rate CarMax Inc. stock as buy, with 8 recommending it as overweight.


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