CarMax Inc. (NYSE:KMX) traded with a subtraction of -$1.15 to $78.07 on Thursday, a downside of -1.45 percent. An average of 1,350,894 shares of common stock have been traded in the last five days. There was a fall of -$3.74 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 1,150,114 shares traded, while the 50-day average volume stands at 1,703,839.
KMX stock has decreased by -5.95% in the last month. The company shares reached their 1-month lowest point of $77.71 on 08/24/23. With the stock rallying to its 52-week high on 07/19/23, shares of the company touched a low of $52.10 and a high of $94.42 in 52 weeks. It has reached a new high 14 times so far this year and achieved 28.22% or $17.02 in price. In spite of this, the price is down -17.31% from the 52-week high.
Insider Transactions
KMX stock investors should be aware that CarMax Inc. (KMX) stock had its last reported insider trading activity 35 days ago on Jul 20. In this transaction, the insider spent $663,501. EVP & Chief Marketing Officer, Lyski James, disposed of 67,345 shares at a price of $84.27 on Jul 12. The insider now owns more than $5,675,163 worth of shares. Prior to that, SVP Newberry Darren C went on to Sale 9,607 shares at $84.56 each on Jul 12. An amount of $812,368 was transacted.
Valuation Metrics
CarMax Inc. (KMX) has a trailing price-to-earnings (P/E) ratio of 26.94. The stock’s beta is 1.44. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.44, the price-to-book (PB) ratio at 2.12, and the price-to-cash flow ratio at 119.28.
Financial Health
The quick ratio of CarMax Inc. for the three months ended May 30 was 0.60, and the current ratio was 2.50, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 3.15 and a total debt to equity ratio of 3.24 for the quarter ending May 30. CarMax Inc.’s EBITDA margin for the year ending May 30 is 0.11%, while its operating margin for the same period stands at 2.20%. Its gross profit as reported stood at $2.8 billion compared to revenue of $29.68 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, CarMax Inc.’s return on assets was 1.70%.
Earnings Surprise
For the three-month period that ended May 30, CarMax Inc. had $16.25 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $228.3 million in the quarter, while revenues were shrunk -10.5%. The analyst consensus anticipated CarMax Inc.’s latest quarter earnings to come in at $0.79 per share, but it turned out to be $1.16, a 46.80% surprise. For the quarter, EBITDA amounted to $399.49 million. Shareholders own equity worth $158.21 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at CarMax Inc. (KMX) price momentum. RSI 9-day as of the close on 23 August was 27.24%, suggesting the stock is oversold, with historical volatility in this time frame at 21.24%.
As of today, KMX’s price is $79.93 -4.58% or -$3.74 from its 5-day moving average. KMX is currently trading -5.06% lower than its 20-day SMA and +21.20% higher than its 100-day SMA. However, the stock’s current price level is -3.35% below the SMA50 and +24.08% above the SMA200.
The stochastic %K and %D were 7.36% and 16.82%, respectively, and the average true range (ATR) was 2.29. With the 14-day stochastic at 2.32% and the average true range at 2.30, the RSI (14) stands at 34.90%. The stock has reached -3.11 on the 9-day MACD Oscillator while the 14-day reading was at -4.14.
Analyst Ratings
Northcoast downgraded CarMax Inc. (NYSE: KMX) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for CarMax Inc. (KMX) among analysts is Hold. According to current brokerage recommendations, 2 brokerage firms advise that investors sell KMX, while 9 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 7 others rate it as a “buy”.
What is KMX’s price target for the next 12 months?
Analysts predict a range of price targets between $44.00 and $96.00, with a median target of $81.00. Taking a look at these predictions, the average price target given by analysts for CarMax Inc. (KMX) stock is $77.48.
