Needham has recently raised Carmax Inc (KMX) stock to Buy rating, as announced on March 20, 2024, according to Finviz. Earlier, on March 19, 2024, Mizuho had initiated the stock to Neutral, setting a price target of $80. Wedbush also raised Outperform rating with a price target of $90. Additionally, Northcoast reduced Neutral rating on June 12, 2023. Truist analysts, in their report published on February 23, 2023, also resumed Hold rating for Carmax Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Carmax Inc (KMX) Stock Trading Recap
On Friday, Carmax Inc (KMX) stock saw a modest uptick, ending the day at $78.78 which represents a slight increase of $2.50 or 3.28% from the prior close of $76.28. The stock opened at $77.16 and touched a low of $77.16 during the day, reaching a high of $78.95. The volume of shares traded was 1.49 million falling short of the average volume of 1.80 million.
KMX Stock Performance and Moving Averages
In recent trading, Carmax Inc (KMX) stock price has shown some volatility, fluctuating -0.76% over the last five trades and 1.72% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -2.67%, and it has gained 12.08% in the previous three months. Currently, KMX is trading at -3.29%, -1.23%, and 5.14% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, KMX, a Consumer Cyclical sector stock, is trading -10.70% below its 52-week high but remains 32.05% above its 52-week low. The Average True Range (ATR) (14 days) of 2.53 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Carmax Inc’s Profitability and Valuation Ratios
Carmax Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of -0.89% and a profit margin of 1.55%, with a gross margin of -2.67%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Carmax Inc’s market capitalization stands at $12.30 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 30.95, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 21.11. Additionally, the Price-to-Sales Ratio is 0.47, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 2, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.45% of Carmax Inc (KMX)’s shares, while financial institutions hold 111.27%.
Notable insider trades include Livesay Jill A, VP, Controller & PAO at Carmax Inc (KMX), who sold 12000 shares on Jul 29 ’24, at $83.52 each, totaling $1.00 million. On Jul 26 ’24, Shamim Mohammad, EVP and CITO, sold 25000 shares for $82.26 each, amounting to $2.06 million. Additionally, on Jul 23 ’24, Wilson Charles Joseph sold 10021 shares at $80.02 each, generating $0.80 million.
