CarMax stock: buy or sell?
July 16th, 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?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to define your own trading plan that matches with your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
These 2 buy setups are elegible for CarMax stock now:
|New all-time high||Yes|
|New 52 week high||Yes|
|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|
|2019-6-24||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
After several days of continuous rises in past weeks, CarMax fell -2.70% to $86.39.
After marking all time highs yesterday, CarMax fell -2.70% to $86.39. Since SMA100d and SMA200d crossed up on Jun 12th, KMX price climbed $5.17 per share (6.37%). Since last March when KMX stock price broke up the SMA200d line, it gained $22.71 (35.66%). Yesterday, KMX hit a new all time high, pushing higher than on Friday tops. Check different trading setups that use ATHs as triggers.
Shares of CarMax closed this week at $86.39 after topping to a new all time high ($89.40) even it couldn't close with gains and dropped an awful -2.87%. After 4 weeks soaring, this week declined a -2.88%.
Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $79.61 resistance. Since SMA20d and SMA40w crossed up early June, KMX price climbed $8.11 per share (10.36%). Since price and SMA40w lines crossed up late March, KMX climbed $24.76 (40.18%).
CarMax stock price history
CarMax IPO was on February 4th, 1997 at $11.00 per share1. Since then, KMX stock grew a 685.40%, with a yearly average of 31.20%. If you had invested $1,000 in CarMax stock in 1997, it would worth $6,854.00 today.
1: Adjusted price after possible price splits or reverse-splits.
CarMax stock historical price chart
KMX stock reached all-time highs yesterday with a price of $89.40.
CarMax stock price target is $92.80Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. 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 12 price predictions for CarMax stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|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%|
|2019-4-1||Buckingham Research||Raises Target||$76.00||$81.00||6.6%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn March, CarMax reported its latest financial data, posting a decent gain for the Earnings per Share (EPS). Experts 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 revenues report draw a pretty good gain of 6.15% to $18,173.10 M dollars. When comparing 2019 vs 2018, nevertheless, profit margin (that is, the net income divided by revenues) stayed 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 posted $4,318.60 M in sales 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 remained steady a 0.03% compared to previous quarter when profit margin was 4.43%. When comparing sales to same quarter last year, CarMax sales marked a nice increase and escalated 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 company, it's always worth to check its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For CarMax, 0.54% of all outstanding shares are owned by its staff.
Bearish positions for KMX stock account 0.00%, no big difference from last month.
For a better context understanding, the next table shows ownership data compared to other related stocks:
|Market cap||$14.4 B||$0.0 M||$17.7 B||$604.5 M||$1.5 B|
|Total shares||166.2 M||0.0 M||228.2 M||7.1 M||18.5 M|
|Float shares||153.3 M||58.9 M||200.5 M||6.3 M||15.5 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%|
|Tuesday, July 16th, 2019|
|Day range||$82.64 - $86.96|
|Average true range||$1.83|
|50d mov avg||$81.83|
|100d mov avg||$74.89|
|200d mov avg||$69.80|
CarMax performanceTo better understand CarMax performance you must becnhmark its gains with other related stocks in same sector or industry. We compared CarMax against AutoNation, Copart, America's Car-Mart, Group 1 Automotive, KAR Auction Services, Penske Automotive and Rush Enterprises in the following table:
|GPIGroup 1 Automotiv...||13.56%||34.07%||22.83%|
|KARKAR Auction Servi...||17.26%||28.57%||12.65%|
CarMax competitorsOne check before investing in any stock is to have a look a list of its competitors, in this case for CarMax. We selected 7 companies as CarMax competitors as they are in the same industry or have similar market objectives.
- 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