For CarMax Inc. [KMX], Analyst sees a drop to $130. What next?

CarMax Inc. [NYSE: KMX] closed the trading session at $119.43 on 06/24/21. The day’s price range saw the stock hit a low of $119.08, while the highest price level was $120.73. The company report on June 15, 2021 that CarMax Announces First Quarter Conference Call and Annual Meeting Information.

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CarMax, Inc. (NYSE:KMX) will report its financial results for the first quarter ending May 31, 2021 before the market opens on June 25, 2021, and it will host a conference call with investors at 9:00 a.m. ET to discuss these results.

Participants on the call will include Bill Nash, president and CEO, Enrique Mayor-Mora, senior vice president, CFO and Jon Daniels, senior vice president, CAF Operations. The live conference call can be accessed by dialing (888) 298-3261 (or (706) 679-7457 for international access) and entering the conference ID 3576577. A live audio webcast also will be available at investors.carmax.com.

The stocks have a year to date performance of 26.43 percent and weekly performance of 3.03 percent. The stock has been moved at 29.35 percent over the last six months. The stock has performed 5.35 percent around the most recent 30 days and changed -8.55 percent over the most recent 3-months.

If compared to the average trading volume of 1.13M shares, KMX reached to a volume of 1817666 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to 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 $140.60 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 1.80. 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.

Wedbush have made an estimate for CarMax Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on May 19, 2021. The new note on the price target was released on March 31, 2021, representing the official price target for CarMax Inc. stock. Previously, the target price had yet another raise to $130, while Northcoast analysts kept a Buy rating on KMX stock.

The Average True Range (ATR) for CarMax Inc. is set at 2.72, with the Price to Sales ratio for KMX stock in the period of the last 12 months amounting to 1.05. The Price to Book ratio for the last quarter was 4.46, with the Price to Cash per share for the same quarter was set at 0.79. Price to Free Cash Flow for KMX in the course of the last twelve months was 39.66 with Quick ratio for the last quarter at 0.60.

KMX stock trade performance evaluation

CarMax Inc. [KMX] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.03. With this latest performance, KMX shares gained by 5.35% in over the last four-week period, additionally plugging by 29.35% over the last 6 months – not to mention a rise of 33.52% 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 53.63, with the RSI for the last a single of trading hit 60.28, and the three-weeks RSI is set at 50.19 for CarMax Inc. [KMX]. The present Moving Average for the last 50 days of trading for this stock 122.34, while it was recorded at 116.88 for the last single week of trading, and 111.54 for the last 200 days.

CarMax Inc. [KMX]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and CarMax Inc. [KMX] shares currently have an operating margin of +1.47 and a Gross Margin at +12.55. CarMax Inc.’s Net Margin is presently recorded at +3.94.

Return on Total Capital for KMX is now 1.41, given the latest momentum, and Return on Invested Capital for the company is 3.85. Return on Equity for this stock inclined to 18.37, with Return on Assets sitting at 3.47. When it comes to the capital structure of this company, CarMax Inc. [KMX] has a Total Debt to Total Equity ratio set at 358.72. Additionally, KMX Total Debt to Total Capital is recorded at 78.20, with Total Debt to Total Assets ending up at 71.95. Long-Term Debt to Equity for the company is recorded at 347.42, with the Long-Term Debt to Total Capital now at 75.74.

Reflecting on the efficiency of the workforce at the company, CarMax Inc. [KMX] managed to generate an average of $27,778 per employee. Receivables Turnover for the company is 88.11 with a Total Asset Turnover recorded at a value of 0.88.CarMax Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 2.40.

Earnings per share (EPS) analysis for CarMax Inc. [KMX] stock

With the latest financial reports released by the company, CarMax Inc. posted 0.03/share EPS, while the average EPS was predicted by analysts to be reported at 0.04/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -25.00%. 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 15.30%.

CarMax Inc. [KMX]: Insider Ownership positions

There are presently around $18,365 million, or 95.50% of KMX stock, in the hands of institutional investors. The top three institutional holders of KMX stocks are: VANGUARD GROUP INC with ownership of 17,184,984, which is approximately -0.025% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 10,390,469 shares of the stock with an approximate value of $1.24 billion in KMX stocks shares; and PRINCIPAL FINANCIAL GROUP INC, currently with $1.11 billion in KMX stock with ownership of nearly -2.468% of the company’s market capitalization.

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Positions in CarMax Inc. stocks held by institutional investors increased at the end of June and at the time of the June reporting period, where 296 institutional holders increased their position in CarMax Inc. [NYSE:KMX] by around 6,771,172 shares. Additionally, 342 investors decreased positions by around 13,178,393 shares, while 128 investors held positions by with 133,822,496 shares. The mentioned changes placed institutional holdings at 153,772,061 shares, according to the latest SEC report filing. KMX stock had 106 new institutional investments in for a total of 2,166,033 shares, while 68 institutional investors sold positions of 2,488,553 shares during the same period.

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