As of Friday close, CarMax Inc.’s (NYSE:KMX) stock was down -$2.24, moving down -2.84 percent to $76.66. The average number of shares traded per day over the past five days has been 1,346,020 shares. 1 time new highs have been achieved over the past 5 days, with a -$6.58 fall in that time frame. In the last twenty days, the average volume was 1,244,180, while in the previous 50 days, it was 1,218,826.
Since last month, KMX stock retreated -3.23%. Shares of the company fell to $76.43 on 09/22/23, the lowest level in the past month. A 52-week high of $87.50 was reached on 07/19/23 after having rallying from a 52-week low of $52.10. Since the beginning of this year, KMX’s stock price has risen by 25.90% or $15.77, and marked a new high 14 times. However, the stock has declined by -12.39% since its 52-week high.
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KMX stock investors should be aware that CarMax Inc. (KMX) stock had its last reported insider trading activity 65 days ago on Jul 20. Daniels Jon G, the SVP, CAF of the company, disposed of 7,783 shares for $85.25 on Jul 20. It resulted in a $663,501 divestment by the insider. Lyski James sold 67,345 shares at an average price of $84.27 on Jul 12. The insider now owns 21,786 shares following the transaction. On Jul 12, SVP Newberry Darren C sold 9,607 shares at $84.56 apiece. The transaction was valued at $812,368.
Valuation Metrics
Right now, CarMax Inc. (KMX) has a P/E ratio of about 26.45. The stock’s beta is 1.43. Besides these, the trailing price-to-sales (P/S) ratio of 0.44, the price-to-book (PB) ratio of 2.08, and the price-to-cash flow ratio of 119.19 may also be considered.
Financial Health
In the three months ended May 30, CarMax Inc.’s quick ratio stood at 0.60, while its current ratio was 2.50, 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 May 30 was 3.15, and the total debt-to-equity ratio was 3.24. On the profitability front, the trailing twelve-month gross margin is 9.80% percent. In the year ended May 30, operating margins totaled 2.20%. Based on annual data, KMX earned $2.8 billion in gross profit and brought in $29.68 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 2.00%. Return on equity (ROE) for the past 12 months was 8.30%.
In CarMax Inc.’s quarter-end financial report for May 30, it reported total debt of $16.25 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. KMX’s revenue fell -21.13% to $5.72 billion during the quarter, while net income inched up to $7.69 billion. While analysts expected CarMax Inc. to report $0.79 quarterly earnings, the actual figure was $1.16 per share, beating the consensus estimate by 46.80%. During the quarter, the company generated $399.49 million in EBITDA. The liabilities of CarMax Inc. were 21.14 billion at the end of its most recent quarter ended May 30, and its total debt was $19.44 billion. The value of shareholders’ equity is $158.21 million.
Technical Picture
This quick technical analysis looks at CarMax Inc.’s (KMX) price momentum. With a historical volatility rate of 30.87%, the RSI 9-day stood at 27.21% on 22 September.
With respect to its five-day moving average, the current CarMax Inc. price is down by -7.90% percent or -$6.58. At present, KMX shares trade -2.13% below its 20-day simple moving average and +8.77% percent above its 100-day simple moving average. However, the stock is currently trading approximately -8.10% below its SMA50 and +13.76% above its SMA200.
Stochastic coefficient K was 11.06% and Stochastic coefficient D was 26.36%, while ATR was 2.18. Given the Stochastic reading of 2.89% for the 14-day period, the RSI (14) reading has been calculated as 33.92%. As of today, the MACD Oscillator reading stands at -2.19, while the 14-day reading stands at -2.32.
Analyst Ratings
CarMax Inc. downgraded its rating on CarMax Inc. (NYSE: KMX) to a Neutral in a note to investors on June 12, 2023. The analysts firm previously had a Buy rating on the stock.CarMax Inc. (KMX) has been rated Overweight by analysts. According to 2 brokerage firms, KMX is a sell, and 8 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 1 analyst rate CarMax Inc. stock as buy, with 7 recommending it as overweight.
With a median target price of $81.00, the current consensus forecast for the stock is $44.00 – $96.00. Based on these forecasts, analysts predict CarMax Inc. (KMX) will achieve an average price target of $78.19.
