CarMax stock: buy or sell?
September 20th, 2019
CarMax Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, CarMax Sales Operations and CarMax Auto Finance.
Should I buy CarMax stock?Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Having a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
None of our preferred buy setups matches with CarMax stock situation right now, therefore this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is CarMax stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we collected 15 ratings published for KMX stock in the last 30 days. The general sentiment of these ratings is bullish for KMX stock, with 10 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-7-18||Bank of America||n/a||Buy|
|2019-6-24||Robert W. Baird||n/a||Outperform|
|2019-6-24||Bank of America||n/a||n/a|
|2019-6-19||Royal Bank of Canada||n/a||Outperform|
|2019-6-17||Credit Suisse Group||n/a||Outperform|
|2019-4-17||Credit Suisse Group||Outperform||Outperform|
CarMax stock analysis
CarMax shares slipped -1.95% to $84.63 today.
CarMax slipped a fateful -1.95% and closed at $84.63. Since SMA100d and SMA200d crossed up on June, KMX price climbed $3.41 per share (4.20%). Since price and SMA100d lines crossed up on Aug/29, KMX climbed $3.36 (4.13%). On July, KMX hit a new all time high, pushing higher than on July tops. Check different trading setups that use ATHs as triggers.
CarMax shares slipped -2.44% this week, ending at $84.63. By mid August KMX collapsed a shocking -5.20% in just one week.
The downtrend marked by KMX has left successive declining peaks and bottoms. If the support holds the price, this might mark a double bottom shape and create a flat-base to reverse this downtrend. Not so far away is the last price record CarMax marked late July. Early June, SMA20w and SMA40w crossed up triggering a rise of 8.11%. Since late March when KMX stock price broke up the SMA40w line, it gained $23.00 (37.32%).
CarMax stock price history
CarMax IPO was on February 4th, 1997 at $11.00 per share1. Since then, KMX stock surged a 669.40%, with an average of 30.40% per year. If you had invested right after KMX's IPO a $1,000 in CarMax stock in 1997, it would worth $6,694.00 today.
1: Adjusted price after possible price splits or reverse-splits.
CarMax stock historical price chart
KMX stock reached all-time highs on July with a price of $92.01.
CarMax stock price target is $98.50How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 13 price forecasts for KMX stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-3||Morgan Stanley||Lowers Target||$99.00||$97.00||-2%|
|2019-7-18||Bank of America||Raises Target||$112.00||$150.00||33.9%|
|2019-6-24||Robert W. Baird||Reiterates||$80.00||$99.00||23.8%|
|2019-6-24||Bank of America||Raises Target||$95.00||$112.00||17.9%|
|2019-6-19||Royal Bank of Canada||Raises Target||$86.00||$92.00||7%|
|2019-6-17||Credit Suisse Group||Reiterates||$84.00||$90.00||7.1%|
|2019-4-17||Morgan Stanley||Raises Target||$89.00||$93.00||4.5%|
|2019-4-17||Credit Suisse Group||Reiterates||$75.00||$84.00||12%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn March, CarMax presented its financial report, posting a good climb for the Earnings per Share (EPS) ratio. Analyst expected $1.04 per share, but CarMax posted $1.13.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2018, last anual turnover report draw a very good increase of 6.15% to $18,173.10 M USD. When comparing 2019 vs 2018, on the other hand, profit margin (that is, the net income divided by revenues) remained steady a 0.76% to 4.64%.
|2013||$10,960 M||-||$434 M4.0%||-|
|2014||$12,570 M||14.69%||$493 M3.9%||13.43%|
|2015||$14,269 M||13.51%||$597 M4.2%||21.27%|
|2016||$15,150 M||6.17%||$623 M4.1%||4.36%|
|2017||$15,875 M||4.79%||$627 M3.9%||0.57%|
|2018||$17,120 M||7.84%||$664 M3.9%||5.92%|
|2019||$18,173 M||6.15%||$842 M4.6%||26.85%|
Quarterly financial resultsCarMax reported $4,318.60 M in revenues for 2019-Q1, a 0.53% up compared to previous quarter. Reported quarter earnings marked $192.56 M with a profit margin of 4.46%. Profit margin stayed steady a 0.03% compared to previous quarter when profit margin was 4.43%. When comparing turnover to same quarter last year, CarMax sales marked a nice growth and jumped a 5.74%.
|2017-Q2||$4,540 M||-||$212 M4.7%||-|
|2017-Q3||$4,390 M||-3.30%||$181 M4.1%||-14.30%|
|2017-Q4||$4,107 M||-6.45%||$149 M3.6%||-17.96%|
|2018-Q1||$4,084 M||-0.56%||$122 M3.0%||-17.93%|
|2018-Q2||$4,793 M||17.34%||$239 M5.0%||95.39%|
|2018-Q3||$4,766 M||-0.55%||$221 M4.6%||-7.44%|
|2018-Q4||$4,296 M||-9.87%||$190 M4.4%||-13.84%|
|2019-Q1||$4,319 M||0.53%||$193 M4.5%||1.18%|
CarMax ownershipWhen you are planning to invest in shares of a stock, it's always worth to overview its ownership structure.
CarMax shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.54% of all shares.
Bearish positions for KMX stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to CarMax:
|Market cap||$14.0 B||$4.5 B||$18.9 B||$609.6 M||$1.6 B|
|Total shares||165.6 M||89.1 M||229.1 M||6.7 M||18.6 M|
|Float shares||154.8 M||60.0 M||200.5 M||6.2 M||15.7 M|
|- Institutional holdings (%)||106.1%||87.1%||86.9%||74.9%||106.4%|
|- Insider holdings (%)||0.5%||13.6%||12.9%||8.2%||6.8%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, September 20th, 2019|
|Day range||$84.63 - $87.11|
|Average true range||$2.17|
|50d mov avg||$85.35|
|100d mov avg||$83.30|
|200d mov avg||$73.83|
CarMax performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We selected AutoNation, Copart, America's Car-Mart, Group 1 Automotive, KAR Auction Services, Penske Automotive and Rush Enterprises as the bechmarking frame for CarMax stock.
|GPIGroup 1 Automotiv...||10.75%||43.06%||22.83%|
|KARKAR Auction Servi...||8.00%||41.42%||16.06%|
CarMax competitorsWe picked a few stocks to conform a list of CarMax competitors to check if you are interested in investing in KMX:
- AutoNation (AN)
- Copart (CPRT)
- America's Car-Mart (CRMT)
- Group 1 Automotive (GPI)
- KAR Auction Services (KAR)
- Penske Automotive (PAG)
- Rush Enterprises (RUSHA)
Latest CarMax stock news
- Seeking AlphaHow To Trade CarMaxJune 24, 2019
- Seeking AlphaCarMax Is Learning From CarvanaApril 6, 2019
- Seeking AlphaCarMax: Raising Price Target To $126, Omnichannel Launch Much Stronger Than ExpectedApril 3, 2019
- Seeking AlphaLong CarMax: Accelerating Into Top GearApril 3, 2019
- InvestorPlaceCarMax Earnings: KMX Stock Revs Higher on Profit BeatMarch 29, 2019