CarMax Inc. (NYSE: KMX) stock fell -0.91% on Tuesday to $66.72 against a previous-day closing price of $67.33. With 1.17 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.78 million shares. During the session, the Auto & Truck Dealerships company that operates in wider Consumer Cyclical sector, reached to the highest price of $68.04 whereas the lowest price it dropped to was $66.49. The 52-week range on KMX shows that it touched its highest point at $114.43 and its lowest point at $52.10 during that stretch. It currently has a 1-year price target of $61.86. Beta for the stock currently stands at 1.43.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of KMX was down-trending over the past week, with a drop of -1.07%, but this was up by 12.38% over a month. Three-month performance surged to 19.81% while six-month performance fell -29.49%. The stock lost -38.28% in the past year, while it has gained 9.57% so far this year. A look at the trailing 12-month EPS for KMX yields 3.56 with Next year EPS estimates of 3.10. For the next quarter, that number is 0.27. This implies an EPS growth rate of 54.10% for this year and 8.11% for next year. EPS is expected to grow by 16.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 16.40%.
Float and Shares Shorts:
At present, 158.00 million KMX shares are outstanding with a float of 157.51 million shares on hand for trading. On Oct 13, 2022, short shares totaled 14.08 million, which was 8.91% higher than short shares on Sep 14, 2022. In addition to Mr. William D. Nash as the firm’s Pres, CEO & Director, Mr. Enrique N. Mayor-Mora serves as its Exec. VP & CFO.
Through their ownership of 104.61% of KMX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 59.70% of KMX, in contrast to 45.09% held by mutual funds. Shares owned by individuals account for 3.21%. As the largest shareholder in KMX with 10.88% of the stake, The Vanguard Group, Inc. holds 17,194,056 shares worth 17,194,056. A second-largest stockholder of KMX, Principal Global Investors LLC, holds 10,555,224 shares, controlling over 6.68% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in KMX, holding 7,996,514 shares or 5.06% stake. With a 4.22% stake in KMX, the Principal Investors – Mid Cap Fun is the largest stakeholder. A total of 6,672,424 shares are owned by the mutual fund manager. The Akre Focus Fund, which owns about 3.25% of KMX stock, is the second-largest Mutual Fund holder. It holds 5,127,101 shares valued at 312.19 million. Vanguard Total Stock Market Index holds 3.04% of the stake in KMX, owning 4,804,822 shares worth 292.57 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for KMX since 20 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With KMX analysts setting a high price target of $85.00 and a low target of $26.00, the average target price over the next 12 months is $61.50. Based on these targets, KMX could surge 27.4% to reach the target high and fall by -61.03% to reach the target low. Reaching the average price target will result in a decline of -7.82% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. KMX will report FY 2023 earnings on 04/06/2023. Analysts have provided yearly estimates in a range of $3.14 being high and $2.52 being low. For KMX, this leads to a yearly average estimate of $2.86. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. CarMax Inc. surprised analysts by -$0.41 when it reported $0.24 EPS against a consensus estimate of $0.65. The surprise factor in the prior quarter was -$0.60. Based on analyst estimates, the high estimate for the next quarter is $0.55 and the low estimate is -$0.08. The average estimate for the next quarter is thus $0.24.
Summary of Insider Activity:
Insiders traded KMX stock several times over the past three months with 1 Buys and 2 Sells. In these transactions, 331 shares were bought while 1,170 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 15 over the past year. The total number of shares bought during that period was 58,477 while 60,757 shares were sold.