Market Analysts see CarMax Inc. [KMX] gaining to $105. Time to buy?

CarMax Inc. [NYSE: KMX] price surged by 2.01 percent to reach at $1.96. The company report on July 6, 2020 that CarMax Recommends Shareholders Reject Below-Market “Mini-Tender” Offer by TRC Capital Investment Corporation.

CarMax, Inc. (the “Company” or “CarMax”) (NYSE:KMX), has been notified that TRC Capital Investment Corporation (“TRC Capital”) has made an unsolicited “mini-tender” offer to purchase up to 1,500,000 shares of CarMax’s common stock, or less than 1% of the outstanding common stock of the Company as of May 31, 2020. TRC Capital’s offer price of $82.50 per share in cash is approximately 4.71% lower than the $86.58 per share closing price for the Company’s common stock on the New York Stock Exchange (the “NYSE”) on June 26, 2020, the last trading day before the commencement of TRC Capital’s mini-tender offer.

CarMax does not endorse TRC Capital’s unsolicited mini-tender offer and is not associated in any way with TRC Capital, its mini-tender offer, or its mini-tender offer documents.

A sum of 1444152 shares traded at recent session while its average daily volume was at 1.53M shares. CarMax Inc. shares reached a high of $100.70 and dropped to a low of $97.26 until finishing in the latest session at $99.36.

The one-year KMX stock forecast points to a potential upside of 4.83. The average equity rating for KMX stock is currently 1.60, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on CarMax Inc. [KMX]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for KMX shares is $104.40 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on KMX stock is a recommendation set at 1.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for CarMax Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on June 01, 2020. While these analysts kept the previous recommendation, Wedbush raised their target price from $70 to $90. The new note on the price target was released on May 12, 2020, representing the official price target for CarMax Inc. stock.

The Average True Range (ATR) for CarMax Inc. is set at 2.57, with the Price to Sales ratio for KMX stock in the period of the last 12 months amounting to 0.90. The Price to Book ratio for the last quarter was 4.52, with the Price to Cash per share for the same quarter was set at 3.98. Price to Free Cash Flow for KMX in the course of the last twelve months was 25.12 with Quick ratio for the last quarter at 1.20.

KMX Stock Performance Analysis:

CarMax Inc. [KMX] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.25. With this latest performance, KMX shares gained by 9.94% in over the last four-week period, additionally plugging by 2.70% over the last 6 months – not to mention a rise of 18.38% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for KMX stock in for the last two-week period is set at 60.96, with the RSI for the last a single of trading hit 67.10, and the three-weeks RSI is set at 61.51 for CarMax Inc. [KMX]. The present Moving Average for the last 50 days of trading for this stock 92.75, while it was recorded at 98.15 for the last single week of trading, and 86.53 for the last 200 days.

Insight into CarMax Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and CarMax Inc. [KMX] shares currently have an operating margin of +2.94 and a Gross Margin at +13.40. CarMax Inc.’s Net Margin is presently recorded at +4.37.

Return on Total Capital for KMX is now 3.20, given the latest momentum, and Return on Invested Capital for the company is 4.88. Return on Equity for this stock inclined to 24.94, with Return on Assets sitting at 4.43. When it comes to the capital structure of this company, CarMax Inc. [KMX] has a Total Debt to Total Equity ratio set at 422.77. Additionally, KMX Total Debt to Total Capital is recorded at 80.87, with Total Debt to Total Assets ending up at 74.80. Long-Term Debt to Equity for the company is recorded at 410.31, with the Long-Term Debt to Total Capital now at 78.49.

Reflecting on the efficiency of the workforce at the company, CarMax Inc. [KMX] managed to generate an average of $32,844 per employee. Receivables Turnover for the company is 122.80 with a Total Asset Turnover recorded at a value of 1.01.CarMax Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 2.90.


With the latest financial reports released by the company, CarMax Inc. posted 1.4/share EPS, while the average EPS was predicted by analysts to be reported at 1.33/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 5.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for KMX. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for CarMax Inc. go to 12.40%.

CarMax Inc. [KMX] Insider Position Details

There are presently around $16,062 million, in the hands of institutional investors. The top three institutional holders of KMX stocks are: VANGUARD GROUP INC with ownership of 18,465,113, which is approximately 1.658% of the company’s market cap and around 0.40% of the total institutional ownership; BLACKROCK INC., holding 10,723,553 shares of the stock with an approximate value of $1.07 billion in KMX stocks shares; and PRIMECAP MANAGEMENT CO/CA/, currently with $1.02 billion in KMX stock with ownership of nearly -5.741% of the company’s market capitalization.

268 institutional holders increased their position in CarMax Inc. [NYSE:KMX] by around 15,106,750 shares. Additionally, 341 investors decreased positions by around 19,565,394 shares, while 70 investors held positions by with 126,982,447 shares. The mentioned changes placed institutional holdings at 161,654,591 shares, according to the latest SEC report filing. KMX stock had 79 new institutional investments in for a total of 4,674,155 shares, while 104 institutional investors sold positions of 9,521,216 shares during the same period.

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