CarMax Inc. [KMX] stock Downgrade by Wedbush analyst, price target now $130

CarMax Inc. [NYSE: KMX] traded at a low on 07/13/21, posting a -2.72 loss after which it closed the day’ session at $131.74. The company report on June 25, 2021 that CarMax Reports Record First Quarter Fiscal 2022 Results.

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CarMax, Inc. (NYSE:KMX), the nation’s largest and most profitable retailer of used cars, reported results for the first quarter ended May 31, 2021.

Highlights:.

The results of the trading session contributed to over 1393942 shares changing hands. Over the past one week, the price volatility of CarMax Inc. stands at 2.89% while the volatility over the past one month is 2.42%.

The market cap for KMX stock reached $21.22 billion, with 163.15 million shares outstanding and 162.42 million shares in the current float. Compared to the average trading volume of 1.14M shares, KMX reached a trading volume of 1393942 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 $144.30 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 3.29, with the Price to Sales ratio for KMX stock in the period of the last 12 months amounting to 0.91. The Price to Book ratio for the last quarter was 4.57, with the Price to Cash per share for the same quarter was set at 2.35.

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 -0.75. With this latest performance, KMX shares gained by 12.74% in over the last four-week period, additionally plugging by 25.90% over the last 6 months – not to mention a rise of 50.94% 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 59.29, with the RSI for the last a single of trading hit 57.50, and the three-weeks RSI is set at 58.27 for CarMax Inc. [KMX]. The present Moving Average for the last 50 days of trading for this stock 122.62, while it was recorded at 134.43 for the last single week of trading, and 113.29 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 +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 0.70 and a Current Ratio set at 2.20.

Earnings analysis for CarMax Inc. [KMX]

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%.

Insider trade positions for CarMax Inc. [KMX]

There are presently around $20,247 million, or 95.60% 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 $1.37 billion in KMX stocks shares; and PRINCIPAL FINANCIAL GROUP INC, currently with $1.23 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 292 institutional holders increased their position in CarMax Inc. [NYSE:KMX] by around 6,753,089 shares. Additionally, 340 investors decreased positions by around 13,133,612 shares, while 127 investors held positions by with 133,800,370 shares. The mentioned changes placed institutional holdings at 153,687,071 shares, according to the latest SEC report filing. KMX stock had 100 new institutional investments in for a total of 2,138,917 shares, while 68 institutional investors sold positions of 2,440,256 shares during the same period.

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