The stock of CarMax Inc. (NYSE:KMX) decreased by -$0.37 on Tuesday to finish at $82.04, down -0.45 percent. The last five days have seen an average of 1,384,820 shares of common stock traded. 14 times new highs were reached in the current year, with a gain of $21.15. The average number of shares traded over the last 20 days was 1,248,190, while the average volume over the last 50 days totaled 1,210,626.
KMX stock dropped -0.55% 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 $87.50 on 07/19/23, after rallying from a low of $52.10 in 52 weeks. The price of KMX stock has risen by 34.73% or $21.15 this year, reaching a new high 14 times. Still, the stock price is down -6.24% 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 62 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 28.31. Beta for the stock is 1.43. 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 2.23, and the price-to-cash flow ratio of 127.56.
Financial Health
For the recent quarter, 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 recent quarter 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 recent year 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
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. EBITDA was $399.49 million for the quarter. At the end of CarMax Inc.’s most recent quarter, 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 19 September, the RSI 9-day stood at 50.24%, suggesting the stock is Neutral, with a 23.68% historical volatility rate.
The stochastic %K and %D were 59.38% and 70.41% respectively, while the average true range (ATR) was 2.02. Based on the 14-day stochastic reading of 43.62%, the RSI (14) reading is 50.09%. On the 9-day MACD Oscillator, the stock is at 0.61, and the 14-day reading is at 0.49.
Analyst Ratings
CarMax Inc. (NYSE: KMX) was downgraded by Northcoast to a a Neutral rating in its latest research report. The stock was previously rated as a a Buy. Analysts have assigned CarMax Inc. (KMX) an Overweight rating. KMX is a stock that is recommended for selling by 2 brokerage firms, while 8 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 1 rate it overweight and 7 others recommend it as a buy.
What is KMX’s price target for the next 12 months?
The current consensus forecast for the stock is between $44.00 and $96.00, with a median target price of $81.00. In analyzing these forecasts, the average price target given by analysts for CarMax Inc. (KMX) is $78.19.
