CarMax Inc. [KMX] is 6.23% higher this YTD. Is it still time to buy?

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CarMax Inc. [NYSE: KMX] jumped around 0.62 points on Tuesday, while shares priced at $93.13 at the close of the session, up 0.67%. The company report on September 24, 2020 that Largest Used Car Retailer Completes Roll Out of Online Car Buying Nationwide.

CarMax’s personalized e-commerce capabilities and nationwide store footprint empowers customers to buy a car on their terms, doing as much, or as little, online and in-person as they prefer.

CarMax, Inc. (NYSE: KMX), the nation’s largest retailer of used cars, today announced the completion of its omni-channel rollout, which gives CarMax the largest addressable market in the used car industry. This unique omni-channel experience empowers customers to buy a car on their terms – online, in-store, and a seamless integration of both. The announcement was made in the company’s second quarter earnings release, where the company reported record results and profitability.

CarMax Inc. stock is now 6.23% up from its year-to-date (YTD) trading value. KMX Stock saw the intraday high of $95.44 and lowest of $92.12 per share. The company’s 52-week high price is 109.31, which means current price is +147.75% above from all time high which was touched on 08/25/20.

Compared to the average trading volume of 1.39M shares, KMX reached a trading volume of 2130949 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about 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 $118.83 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 1.70. 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.

Exane BNP Paribas have made an estimate for CarMax Inc. shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on October 05, 2020. While these analysts kept the previous recommendation, JP Morgan raised their target price to Overweight. The new note on the price target was released on June 01, 2020, representing the official price target for CarMax Inc. stock. Previously, the target price had yet another raise from $70 to $90, while Wedbush kept a Outperform rating on KMX stock.

The Average True Range (ATR) for CarMax Inc. is set at 3.33, with the Price to Sales ratio for KMX stock in the period of the last 12 months amounting to 0.84. The Price to Book ratio for the last quarter was 3.82, with the Price to Cash per share for the same quarter was set at 4.29. Price to Free Cash Flow for KMX in the course of the last twelve months was 29.35 with Quick ratio for the last quarter at 0.90.

How has KMX stock performed recently?

CarMax Inc. [KMX] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.02. With this latest performance, KMX shares dropped by -11.14% in over the last four-week period, additionally plugging by 51.23% over the last 6 months – not to mention a rise of 3.44% 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 40.37, with the RSI for the last a single of trading hit 40.13, and the three-weeks RSI is set at 42.17 for CarMax Inc. [KMX]. The present Moving Average for the last 50 days of trading for this stock 101.83, while it was recorded at 94.13 for the last single week of trading, and 88.01 for the last 200 days.

CarMax Inc. [KMX]: Deeper insight into the 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 0.90 and a Current Ratio set at 2.70.

Earnings analysis for CarMax Inc. [KMX]

With the latest financial reports released by the company, CarMax Inc. posted 1.04/share EPS, while the average EPS was predicted by analysts to be reported at 1.16/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -10.30%. 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 12.70%.

Insider trade positions for CarMax Inc. [KMX]

There are presently around $15,488 million, in the hands of institutional investors. The top three institutional holders of KMX stocks are: VANGUARD GROUP INC with ownership of 17,978,073, which is approximately -2.638% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 10,462,774 shares of the stock with an approximate value of $974.4 million in KMX stocks shares; and PRICE T ROWE ASSOCIATES INC /MD/, currently with $955.51 million in KMX stock with ownership of nearly 231.89% of the company’s market capitalization.

Positions in CarMax Inc. stocks held by institutional investors increased at the end of September and at the time of the September reporting period, where 276 institutional holders increased their position in CarMax Inc. [NYSE:KMX] by around 20,462,377 shares. Additionally, 312 investors decreased positions by around 19,807,297 shares, while 70 investors held positions by with 126,038,002 shares. The mentioned changes placed institutional holdings at 166,307,676 shares, according to the latest SEC report filing. KMX stock had 104 new institutional investments in for a total of 4,206,228 shares, while 68 institutional investors sold positions of 7,510,204 shares during the same period.

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