why CarMax Inc. [KMX] is a Good Choice for Investors After New Price Target of $63.00

CarMax Inc. [NYSE: KMX] gained 5.17% or 2.96 points to close at $60.16 with a heavy trading volume of 6661003 shares. The company report on December 22, 2022 that Carmax Reports Third Quarter Fiscal 2023 Results.

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CarMax, Inc. (NYSE:KMX) today reported results for the third quarter ended November 30, 2022.

It opened the trading session at $56.57, the shares rose to $60.6294 and dropped to $56.2601, the range by which the price of stock traded the whole day. The daily chart for KMX points out that the company has recorded -39.00% loss over the past six months. However, it is still -15.47% lower than its most recent low trading price.

If we look at the average trading volume of 2.93M shares, KMX reached to a volume of 6661003 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $63.00 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 2.30. 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.

Oppenheimer have made an estimate for CarMax Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on December 23, 2022. While these analysts kept the previous recommendation, Stephens raised their target price from $105 to $64. The new note on the price target was released on October 03, 2022, representing the official price target for CarMax Inc. stock. Previously, the target price had yet another drop from $146 to $100, while BofA Securities kept a Underperform rating on KMX stock.

The Average True Range (ATR) for CarMax Inc. is set at 3.27, with the Price to Sales ratio for KMX stock in the period of the last 12 months amounting to 0.29. The Price to Book ratio for the last quarter was 1.76, with the Price to Cash per share for the same quarter was set at 0.38.

Trading performance analysis for KMX stock

CarMax Inc. [KMX] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.08. With this latest performance, KMX shares dropped by -9.66% in over the last four-week period, additionally sinking by -39.00% over the last 6 months – not to mention a drop of -52.37% 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 40.84, with the RSI for the last a single of trading hit 40.59, and the three-weeks RSI is set at 41.58 for CarMax Inc. [KMX]. The present Moving Average for the last 50 days of trading for this stock 64.42, while it was recorded at 58.52 for the last single week of trading, and 84.96 for the last 200 days.

CarMax Inc. [KMX]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and CarMax Inc. [KMX] shares currently have an operating margin of +1.91 and a Gross Margin at +9.64. CarMax Inc.’s Net Margin is presently recorded at +3.61.

Return on Equity for this stock inclined to 23.99, with Return on Assets sitting at 4.75.

CarMax Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 2.80.

CarMax Inc. [KMX]: An earnings per share (EPS) analysis

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 16.50%.

An analysis of insider ownership at CarMax Inc. [KMX]

There are presently around $9,882 million, in the hands of institutional investors. The top three institutional holders of KMX stocks are: VANGUARD GROUP INC with ownership of 17,838,785, which is approximately -0.062% of the company’s market cap and around 0.20% of the total institutional ownership; PRINCIPAL FINANCIAL GROUP INC, holding 10,555,224 shares of the stock with an approximate value of $635.0 million in KMX stocks shares; and BLACKROCK INC., currently with $609.04 million in KMX stock with ownership of nearly -1.031% of the company’s market capitalization.

Positions in CarMax Inc. stocks held by institutional investors increased at the end of December and at the time of the December reporting period, where 280 institutional holders increased their position in CarMax Inc. [NYSE:KMX] by around 8,111,855 shares. Additionally, 334 investors decreased positions by around 7,029,190 shares, while 122 investors held positions by with 149,113,235 shares. The mentioned changes placed institutional holdings at 164,254,280 shares, according to the latest SEC report filing. KMX stock had 47 new institutional investments in for a total of 982,768 shares, while 93 institutional investors sold positions of 2,313,195 shares during the same period.

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