Investing in CarMax Inc. (KMX) is a safe bet with a significant edge

In the latest session, CarMax Inc. (NYSE: KMX) closed at $66.72 down -0.91% from its previous closing price of $67.33. In other words, the price has decreased by -$0.61 from its previous closing price. On the day, 1174231 shares were traded. KMX stock price reached its highest trading level at $68.04 during the session, while it also had its lowest trading level at $66.49.

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For a deeper understanding of CarMax Inc.’s stock, let’s take a closer look at its various ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 14.41 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 12.49. For the most recent quarter (mrq), Quick Ratio is recorded 0.80 and its Current Ratio is at 2.60. In the meantime, Its Debt-to-Equity ratio is 3.35 whereas as Long-Term Debt/Eq ratio is at 3.24.

Upgrades & Downgrades

Oppenheimer reiterated its Outperform rating for the stock on December 23, 2022, while the target price for the stock was revised from $100 to $75.

Insider Transactions:

Additionally, insider trades can be beneficial to investors who want to learn what the management thinks about stock prices in the future. A recent insider transaction in this stock occurred on Dec 30 when Nash William D bought 8,220 shares for $60.98 per share. The transaction valued at 501,256 led to the insider holds 165,128 shares of the business.

Cafritz Diane L sold 15,555 shares of KMX for $1,473,836 on Jul 21. The EVP, General Counsel & CHRO now owns 4,988 shares after completing the transaction at $94.75 per share. On Jul 18, another insider, Shamim Mohammad, who serves as the EVP and CITO of the company, sold 3,456 shares for $93.91 each. As a result, the insider received 324,553 and left with 8,769 shares of the company.

Valuation Measures:

As of this moment, CarMax’s Price-to-Earnings (P/E) ratio for their current fiscal year is 18.76, and their Forward P/E ratio for the next fiscal year is 21.49. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 1.14. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.31 while its Price-to-Book (P/B) ratio in mrq is 1.92.

Stock Price History:

Over the past 52 weeks, KMX has reached a high of $114.43, while it has fallen to a 52-week low of $52.10. The 50-Day Moving Average of the stock is 65.45, while the 200-Day Moving Average is calculated to be 81.69.

Shares Statistics:

For the past three months, KMX has traded an average of 2.78M shares per day and 3.09M over the past ten days. A total of 158.00M shares are outstanding, with a floating share count of 157.51M. Shares short for KMX as of Oct 13, 2022 were 14.08M with a Short Ratio of 20.91M, compared to 13.31M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 8.91% and a Short% of Float of 10.05%.

Earnings Estimates

There are 13 different market analysts currently analyzing its stock. On average, analysts expect EPS of $0.74 for the current quarter, with a high estimate of $1.07 and a low estimate of $0.5, while EPS last year was $1.63. The consensus estimate for the next quarter is $0.8, with high estimates of $1.18 and low estimates of $0.5.

Analysts are recommending an EPS of between $4.77 and $3.49 for the fiscal current year, implying an average EPS of $3.97. EPS for the following year is $4.43, with 18 analysts recommending between $5.64 and $3.22.

Revenue Estimates

A total of 15 analysts have provided revenue estimates for KMX’s current fiscal year. The highest revenue estimate was $33.24B, while the lowest revenue estimate was $30.57B, resulting in an average revenue estimate of $32.08B. In the same quarter a year ago, actual revenue was $31.9B, up 0.60% from the average estimate. Based on 15 analysts’ estimates, the company’s revenue will be $31.73B in the next fiscal year. The high estimate is $36.31B and the low estimate is $29.39B. The average revenue growth estimate for next year is down -1.10% from the average revenue estimate for this year.