Carmax Inc (NYSE: KMX)’s stock price has gone rise by 0.89 in comparison to its previous close of 79.57, however, the company has experienced a 1.47% increase in its stock price over the last five trading days. zacks.com reported 2025-01-15 that BRLT, GCT, RMR, KMX and OOMA have been added to the Zacks Rank #1 (Strong Buy) List on January 15, 2025.
Is It Worth Investing in Carmax Inc (NYSE: KMX) Right Now?
Carmax Inc (NYSE: KMX) has a higher price-to-earnings ratio of 27.30x compared to its average ratio. KMX has 36-month beta value of 1.72. Analysts have mixed views on the stock, with 5 analysts rating it as a “buy,” 5 as “overweight,” 6 as “hold,” and 0 as “sell.”
The public float for KMX is 153.10M, and currently, short sellers hold a 8.60% ratio of that float. The average trading volume of KMX on January 16, 2025 was 1.86M shares.
KMX’s Market Performance
The stock of Carmax Inc (KMX) has seen a 1.47% increase in the past week, with a -7.49% drop in the past month, and a 9.91% gain in the past quarter. The volatility ratio for the week is 2.64%, and the volatility levels for the past 30 days are at 2.79% for KMX. The simple moving average for the past 20 days is -2.05% for KMX’s stock, with a 4.62% simple moving average for the past 200 days.
Analysts’ Opinion of KMX
Many brokerage firms have already submitted their reports for KMX stocks, with Stephens repeating the rating for KMX by listing it as a “Equal-Weight.” The predicted price for KMX in the upcoming period, according to Stephens is $86 based on the research report published on December 05, 2024 of the previous year 2024.
Needham, on the other hand, stated in their research note that they expect to see KMX reach a price target of $99. The rating they have provided for KMX stocks is “Buy” according to the report published on March 20th, 2024.
Mizuho gave a rating of “Neutral” to KMX, setting the target price at $80 in the report published on March 19th of the previous year.
KMX Trading at -1.14% from the 50-Day Moving Average
After a stumble in the market that brought KMX to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -12.02% of loss for the given period.
Volatility was left at 2.79%, however, over the last 30 days, the volatility rate increased by 2.64%, as shares sank -6.93% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +10.91% upper at present.
During the last 5 trading sessions, KMX rose by +1.47%, which changed the moving average for the period of 200-days by -7.84% in comparison to the 20-day moving average, which settled at $81.96. In addition, Carmax Inc saw -1.81% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at KMX starting from Mayor-Mora Enrique N, who proposed sale 5,000 shares at the price of $81.43 back on Jan 15 ’25. After this action, Mayor-Mora Enrique N now owns shares of Carmax Inc, valued at $407,133 using the latest closing price.
Shamim Mohammad, the EVP and CITO of Carmax Inc, sale 12,845 shares at $81.94 during a trade that took place back on Jan 08 ’25, which means that Shamim Mohammad is holding 11,738 shares at $1,052,519 based on the most recent closing price.
Stock Fundamentals for KMX
Current profitability levels for the company are sitting at:
- 0.03 for the present operating margin
- 0.1 for the gross margin
The net margin for Carmax Inc stands at 0.02. The total capital return value is set at 0.03. Equity return is now at value 7.52, with 1.69 for asset returns.
Based on Carmax Inc (KMX), the company’s capital structure generated 0.74 points at debt to capital in total, while cash flow to debt ratio is standing at 0.04. The debt to equity ratio resting at 2.84. The interest coverage ratio of the stock is 0.9.
Currently, EBITDA for the company is 1.04 billion with net debt to EBITDA at 14.19. When we switch over and look at the enterprise to sales, we see a ratio of 1.14. The receivables turnover for the company is 121.62for trailing twelve months and the total asset turnover is 0.95. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.30.
Conclusion
To put it simply, Carmax Inc (KMX) has had a mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
