CarMax, Inc. (KMX): When The Market Gets It Wrong

The stock of CarMax, Inc. (NYSE:KMX) has been Initiated to Buy by Argus in its latest research note that was published on June 28. KMX was given a price target of $100, with other Wall Street analysts also giving their reports regarding the stock. Northcoast analysts have downgraded their rating of KMX stock from Buy to Neutral in a separate flash note to investors on June 28. Analysts at Buckingham Research downgraded the stock to a Neutral call from its previous Buy stance, in a research note that dated back to June 24.

CarMax, Inc., which has current market capitalization of above $14 Billion, published its last quarter earnings on May 31, 2019.

KMX surged by $2.18 during the normal trading session on Thursday and reaching a high of $87.50 during the day while it closed the day at $86.53. The CarMax, stock had a low trading volume of 1.44 million shares on that day, which is low compared to the average daily volume of 1.64M shares. KMX has also lost 0.23% of its value over the past 7 days. However, the stock has surged by 5.33% in the 3 months of the year. Over the past six months meanwhile, it has gained 42.77% while it has added 37.94% year-on date. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -5.96% from its 3 months high price. However, taking another look at KMX will indicate that it is trading +9.02% away from its 90-day low. Looking at the bigger picture, the CarMax, Inc. stock has dropped by -5.96% from its 52-week high while it has surged by +56.64% from its 52-week low price.

On July 26, 2019 Shamim Mohammad, SVP and CIO sold 13894 shares of the company. The average price for that transaction was $90.39 per share, which meant that Shamim Mohammad earned $1255879 selling the stocks. The sale was made public, with the document of the transaction filed with the SEC. Another insider trading occurred, with EVP, Gen. Counsel & Secretary, MARGOLIN ERIC M selling 14699 shares of this stock on July 25, 2019. The average selling price for the stock was $89.06 per share, with the sold stock accruing $1309093. Following this transaction, the EVP, Gen. Counsel & Secretary MARGOLIN ERIC M now holds 31166 shares of the company, which is worth around $2659083.

CarMax, has around 522 Billion cash on their books at the moment. This figure will have to be compared and looked into, with their current liabilities standing at $1 Trillion. The CarMax, stock is bringing in revenue of over 12 months, which is roughly 5 Trillion. Despite all that, CarMax, Inc. is seeing things progressing very much as their y-o-y quarterly revenue surged by 11.93%.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 56.65%. This figure is worse than the company’s 20-day Raw Stochastic average which currently stands at 88.07%. Over the past 20 days, CarMax,’s Stochastic %K stood at 87.26% while its Stochastic %D was revealed to be 88.72%.