Carmax Inc (NYSE: KMX)’s stock price has soared by 4.57 in relation to previous closing price of 67.21. Nevertheless, the company has seen a gain of 1.55% in its stock price over the last five trading days. seekingalpha.com reported 2025-06-24 that I am upgrading CarMax from sell to hold after strong 1Q26 results and impressive retail growth, despite a tough macro environment. Management’s execution on pricing and inventory, especially the Value Max program, drove robust sales across both budget and premium segments. Credit quality in the CarMax Auto Finance segment remains a concern, with elevated loan loss provisions and declining financing penetration posing earnings headwinds.
Is It Worth Investing in Carmax Inc (NYSE: KMX) Right Now?
Carmax Inc (NYSE: KMX) has a higher price-to-earnings ratio of 19.44x compared to its average ratio, The 36-month beta value for KMX is at 1.38. Analysts have varying views on the stock, with 8 analysts rating it as a “buy,” 4 rating it as “overweight,” 4 as “hold,” and 0 as “sell.”
The public float for KMX is 149.34M, and currently, shorts hold a 9.20% of that float. The average trading volume for KMX on July 02, 2025 was 3.97M shares.
KMX’s Market Performance
The stock of Carmax Inc (KMX) has seen a 1.55% increase in the past week, with a 9.03% rise in the past month, and a -9.80% fall in the past quarter. The volatility ratio for the week is 3.33%, and the volatility levels for the past 30 days are at 3.15% for KMX. The simple moving average for the past 20 days is 5.24% for KMX’s stock, with a -6.80% simple moving average for the past 200 days.
Analysts’ Opinion of KMX
Many brokerage firms have already submitted their reports for KMX stocks, with Morgan Stanley repeating the rating for KMX by listing it as a “Overweight.” The predicted price for KMX in the upcoming period, according to Morgan Stanley is $80 based on the research report published on July 01, 2025 of the current year 2025.
Wedbush, on the other hand, stated in their research note that they expect to see KMX reach a price target of $90. The rating they have provided for KMX stocks is “Outperform” according to the report published on May 19th, 2025.
Stephens gave a rating of “Overweight” to KMX, setting the target price at $90 in the report published on March 26th of the current year.
KMX Trading at 6.48% from the 50-Day Moving Average
After a stumble in the market that brought KMX to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -22.98% of loss for the given period.
Insider Trading
Reports are indicating that there were more than several insider trading activities at KMX starting from STEENROD MITCHELL D, who purchase 1,300 shares at the price of $65.49 back on Apr 24 ’25. After this action, STEENROD MITCHELL D now owns 33,577 shares of Carmax Inc, valued at $85,137 using the latest closing price.
Tuite Tyler, the SVP & Chief Product Officer of Carmax Inc, sale 4,869 shares at $84.58 during a trade that took place back on Jan 28 ’25, which means that Tuite Tyler is holding 227 shares at $411,820 based on the most recent closing price.
Stock Fundamentals for KMX
Current profitability levels for the company are sitting at:
- 0.0 for the present operating margin
- 0.11 for the gross margin
The net margin for Carmax Inc stands at 0.02. The total capital return value is set at 0.0. Equity return is now at value 8.97, with 2.04 for asset returns.
Based on Carmax Inc (KMX), the company’s capital structure generated 0.74 points at debt to capital in total, while cash flow to debt ratio is standing at 0.06. The debt to equity ratio resting at 2.85. The interest coverage ratio of the stock is 0.04.
Currently, EBITDA for the company is 1.03 billion with net debt to EBITDA at 10.15. When we switch over and look at the enterprise to sales, we see a ratio of 1.06. The receivables turnover for the company is 133.73for trailing twelve months and the total asset turnover is 0.98. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.39.
Conclusion
In conclusion, Carmax Inc (KMX) has had a mixed performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
