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  • Revved Up: Carmax Inc. (NYSE: KMX) Gains Momentum with Strong Performance Metrics

Revved Up: Carmax Inc. (NYSE: KMX) Gains Momentum with Strong Performance Metrics

Needham recently upgraded Carmax Inc (NYSE: KMX) stock from a Hold to a Buy, reflecting growing optimism in the company's prospects. This rating adjustment, announced on March 20, 2024, according to finviz, underscores the firm's bullish outlook on Carmax. Wedbush also revised its stance on the stock, upgrading it from Neutral to Outperform with a price target of $90, as detailed in their research brief from February 23, 2023. Conversely, Truist analysts resumed coverage on Carmax with a Hold rating and a price target of $66.

On Tuesday, CarMax, Inc. (NYSE: KMX) showed strong performance in its trading session. The stock opened at $82.72 and reached a day's range between $82.09 and $84.23. By the closing bell, CarMax closed at $84.02, marking a gain of 2.46% from the previous day's close. In after-hours trading, the stock slightly dipped to $83.70, reflecting a decrease of 0.38%. The trading volume for the day was 1,853,931 shares, slightly below the average volume of 2,061,155 shares.

Examining recent performance metrics, Carmax's stock has shown notable volatility, with a 16.27% fluctuation over the last five trades and a 19.53% variation in the past 30 trades, highlighting dynamic market activity since the beginning of the year. Over the last six months, the stock has gained 20.74%, and over the last three months, it has increased by 20.96%. Currently, KMX stock is trading at margins of 13.99%, 16.89%, and 17.00% relative to the 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading session, Carmax operates within the Consumer Cyclical sector, trading -4.76% below its 52-week high and 40.83% above its 52-week low. This range provides insight into the stock's trajectory over the past year. Carmax's Weighted Alpha stands at 10.37, indicating positive performance trends over the year.

Analyzing profitability metrics, Carmax reports an operating margin of -0.89%, a profit margin of 1.55%, and a gross margin of 9.35%. These figures offer insights into the company's operational efficiency and profitability ratios. With a market capitalization of $13.11 billion, Carmax's price-to-earnings ratio is 33.00, reflecting its valuation relative to earnings. The stock's forward P/E stands at 22.50, projecting future earnings expectations.

Insider trading activities reveal 0.45% insider ownership, with significant institutional holdings at 110.85%. Recent insider transactions include sales by senior executives like John M III Stuckey, SVP, Gen Counsel & Secretary, who sold 19,673 shares, and William D Nash, President & CEO, who sold 120,000 shares.

Overall, Needham's upgrade to a Buy and Wedbush's Outperform rating signal increasing confidence in Carmax's future performance, supported by robust market metrics and strategic insights into the automotive retail sector.

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