CarMax Inc. (NYSE: KMX) stock fell -2.54% on Wednesday to $70.15 against a previous-day closing price of $71.98. With 1.34 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.19 million shares. During the session, the Auto & Truck Dealerships company that operates in wider Consumer Cyclical sector, reached to the highest price of $71.74 whereas the lowest price it dropped to was $69.10. The 52-week range on KMX shows that it touched its highest point at $106.24 and its lowest point at $52.10 during that stretch. It currently has a 1-year price target of $69.36. Beta for the stock currently stands at 1.41.
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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 -2.50%, but this was up by 4.14% over a month. Three-month performance surged to 1.50% while six-month performance rose 5.95%. The stock lost -22.82% in the past year, while it has gained 15.21% so far this year. A look at the trailing 12-month EPS for KMX yields 3.02 with Next year EPS estimates of 3.46. For the next quarter, that number is 0.79. This implies an EPS growth rate of -56.50% for this year and 43.67% 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 -3.70%.
Float and Shares Shorts:
At present, 158.07 million KMX shares are outstanding with a float of 157.64 million shares on hand for trading. On May 14, 2023, short shares totaled 22.1 million, which was 13.98% higher than short shares on Apr 13, 2023. 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 110.83% of KMX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.93% of KMX, in contrast to 51.99% held by mutual funds. Shares owned by individuals account for 3.22%. As the largest shareholder in KMX with 10.97% of the stake, The Vanguard Group, Inc. holds 17,347,999 shares worth 17,347,999. A second-largest stockholder of KMX, Principal Global Investors LLC, holds 10,278,009 shares, controlling over 6.50% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in KMX, holding 7,279,022 shares or 4.60% stake. With a 4.12% stake in KMX, the Principal Funds, Inc. – Mid Cap F is the largest stakeholder. A total of 6,507,897 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.11% of KMX stock, is the second-largest Mutual Fund holder. It holds 4,908,693 shares valued at 343.76 million. Akre Focus Fund holds 2.94% of the stake in KMX, owning 4,650,000 shares worth 325.64 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Feb 27, 2023, KMX reported revenue of $9.31B and operating income of $163.04M. The EBITDA in the recently reported quarter was $435.85M and diluted EPS was $1.56.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for KMX since 0 analysts follow the stock currently. 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 $40.00, the average target price over the next 12 months is $68.33. Based on these targets, KMX could surge 21.17% to reach the target high and fall by -42.98% to reach the target low. Reaching the average price target will result in a decline of -2.59% 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.
Summary of Insider Activity:
Insiders traded KMX stock several times over the past three months with 9 Buys and 9 Sells. In these transactions, 38,202 shares were bought while 11,944 shares were sold. The number of buy transactions has increased to 23 while that of sell transactions has risen to 15 over the past year. The total number of shares bought during that period was 97,268 while 50,217 shares were sold.