Insiders Have Traded CarMax Inc. (KMX) Stock In What Way?

The stock of CarMax Inc. (NYSE:KMX) increased by $2.17 on Wednesday to $83.63, up 2.67 percent. The last five days have seen an average of 1,010,529 shares of common stock traded. 14 times new highs were reached in the current year, with a gain of $23.01. The average number of shares traded over the last 20 days was 1,141,462, while the average volume over the last 50 days totaled 1,661,697.

KMX stock dropped -0.53% since last month. On 08/24/23, the company’s shares reached a one-month low of $77.44. The stock touched a high of $93.34 on 07/19/23, after rallying from a low of $52.10 in 52 weeks. The price of KMX stock has risen by 37.35% or $23.01 this year, reaching a new high 14 times. Still, the stock price is down -10.40% 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 41 days ago on Jul 20. On Jul 20, SVP, CAF Daniels Jon G sold 7,783 shares at $85.25 each. This transaction resulted in the insider making $663,501. On Jul 12, Lyski James sold 67,345 shares at a price of US$84.27. After the transaction, the insider now owns 21,786 shares. SVP Newberry Darren C had earlier sold 9,607 shares on Jul 12 for $84.56 a share. The transaction was completed for $812,368.

Valuation Metrics

CarMax Inc. (KMX) has a trailing price-to-earnings (P/E) ratio of 28.86. Beta for the stock is 1.44. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.47, the price-to-book (PB) ratio of 2.27, and the price-to-cash flow ratio of 128.94.

Financial Health

For the three months ended May 30, CarMax Inc.’s quick ratio was 0.60, while its current ratio was 2.50, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending May 30 is 3.15, and the total debt to equity ratio is 3.24. As far as profitability goes, gross margin for the trailing twelve months is 9.80% percent. CarMax Inc.’s EBITDA margin for the year ended May 30 was 0.11%, whereas its operating margin stood at 2.20% for the same period. Based on annual data, it had gross profit of $2.8 billion and revenue of $29.68 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. KMX’s return on assets (ROA) during the last 12 months has been 1.70%. There was a 2.00% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 8.30%.

Earnings Surprise

According to CarMax Inc.’s quarterly financial report for the quarter that ended May 30. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $7.69 billion, while revenues fell by -21.13% to $5.72 billion. It was predicted that CarMax Inc.’s quarterly earnings would be $1.16, but it ended up being $0.79, beating the consensus by 46.80%. EBITDA was $399.49 million for the quarter. At the end of CarMax Inc.’s most recent quarter ended May 30, its liabilities totaled 21.14 billion, while its total debt was $19.44 billion. Equity owned by shareholders amounts to $158.21 million.

Technical Picture

Here’s a quick look at CarMax Inc.’s (KMX) price momentum from a technical perspective. As of 29 August, the RSI 9-day stood at 60.89%, suggesting the stock is Neutral, with a 26.92% historical volatility rate.

The stochastic %K and %D were 50.98% and 31.90% respectively, while the average true range (ATR) was 2.27. Based on the 14-day stochastic reading of 77.35%, the RSI (14) reading is 56.14%. On the 9-day MACD Oscillator, the stock is at 1.35, and the 14-day reading is at -0.09.