CarMax Inc ($KMX) Stock Forecast: Down 3.8% Today

What is CarMax Inc?

CarMax (KMX) is a company in the Consumer Discretionary sector that sells, finances, and services used and new cars through a chain of around 250 retail stores. Today, the stock had a strong bearish movement.

Why is CarMax Inc going down?

KMX stock is down 3.8% on Aug 1, 2024 14:53

• The insider selling of stock options by CarMax's EVP and COO might have signaled a lack of confidence in the company's future prospects, potentially contributing to the bearish movement.
• The overall market sentiment towards risk-on stocks due to potential rate cuts by the Federal Reserve could have shifted investor focus away from CarMax, leading to the bearish movement.
• The mixed quarterly results and stock price volatility mentioned in the investor letter from Vulcan Value Partners may have raised concerns among investors, further impacting CarMax's stock performance negatively.

KMX Price Chart

KMX News

Do You Think Reducing Costs And Boosting Competitiveness Will Improve CarMax’s (KMX) Prospects?

Investment management company Vulcan Value Partners recently released its second quarter 2024 investor letter. A copy of the letter can be downloaded here. The quarterly results were mixed. The firm faced stock price volatility with some of the companies in its portfolios but managed this by adhering to discipline and capitalizing on the volatility to invest in […]

https://www.insidermonkey.com/blog/do-you-think-reducing-costs-and-boosting-competitiveness-will-improve-carmaxs-kmx-prospects-1327065/

7 Risk-On Stocks to Buy as Rate Cut Fervor Intensifies

For years following the worst of the COVID-19 crisis, the Federal Reserve wrestled with blistering inflation. Unfortunately, it was a necessary evil. Had the central bank not taken action, the economy could have fallen into a severe and prolonged recession. However, borrowing costs have become too onerous, hurting business growth. Therefore, investors may want to consider risk-on stocks as the Fed goes dovish. To be sure, there’s zero guarantee that policymakers will pivot toward a more accommodative policy. However, recent comments by the central bankers indicate the much-anticipated relief in borrowing costs may come soon enough. Indeed, the latest call among economists suggest that the Fed may cut rates twice this year. The first such move could occur in September. That’s only a little over a month from now. Ahead of the news item, investors may want to consider certain ideas that could benefit from the pivot. Below are risk-on stocks to consider.

https://investorplace.com/2024/07/7-risk-on-stocks-to-buy-as-rate-cut-fervor-intensifies/

Insider Unloading: Joseph Charles Wilson Sells Options, Realizes $168K

A significant insider transaction involving the exercise of company stock options was reported on July 24, by Joseph Charles Wilson , EVP and COO at CarMax (NYSE: KMX ), as per the latest SEC filing. What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Wilson, EVP and COO at CarMax, a company in the Consumer Discretionary sector, just exercised stock options worth 10,021 shares of KMX stock with an exercise price of $63.04. The Thursday morning market activity shows CarMax shares up by 1.93%, trading at $81.44. This implies a total value of $168,954 for Wilson''s 10,021 shares. Delving into CarMax''s Background CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair.

https://www.benzinga.com/insights/news/24/07/39961667/insider-unloading-joseph-charles-wilson-sells-options-realizes-168k

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CarMax Inc Price History

11.03.2024 - KMX Stock was down 9.8%

• CarMax (KMX) saw a notable decrease of more than 15% in its stock value following lower sales volume results in the recent earnings announcement.
• Falling short of market anticipations for the fourth quarter contributed to a pessimistic market sentiment and a sharp decline in stock value.
• The company's struggles in a declining used car market added to the overall negative market trend.
• Investor confidence took a hit as CarMax delivered a cautious outlook during its earnings call, intensifying the stock's significant drop in value.

12.05.2024 - KMX Stock was up 5.3%

• Despite bearish options activity, CarMax (KMX) saw a notable positive movement today.
• The conflicting options activity could signal uncertainty or diverse viewpoints from traders regarding CarMax's future performance.
• The stock's bullish uptrend could be influenced by favorable earnings, growth prospects, or market speculation boosting its value.
• Investors are advised to keep a close watch on developments and market sentiment to assess CarMax's future stock direction.

11.03.2024 - KMX Stock was down 10.3%

• The stock of CarMax dropped by almost 14% due to unsatisfactory Q4 results, including lower sales and profitability attributed to unit sales.
• The company mentioned various challenges affecting their performance, such as issues with vehicle affordability, inflation, higher interest rates, stricter lending standards, and reduced consumer confidence.
• The market sentiment, reflected by the Fear & Greed Index, stayed in the "Neutral" range after the inflation data for March was announced, impacting CarMax's stock negatively.

11.03.2024 - KMX Stock was down 13.6%

• CarMax stock experienced a significant bearish movement recently.
• The company reported disappointing fourth-quarter results, with a 27% decrease in profit compared to the previous year.
• Lower gross margins, a decrease in average selling prices, and challenges related to vehicle affordability, inflationary pressures, and consumer confidence contributed to the poor performance.
• The market reacted negatively to these results, causing a sharp decline in CarMax's stock price as investors adjusted their expectations based on the company's underwhelming performance.

11.03.2024 - KMX Stock was down 11.9%

• CarMax reported earnings per share of 32 cents, missing the analyst estimate of 49 cents, and revenue of $5.63 billion, which was below the expected $5.79 billion.
• The stock's poor performance may have been influenced by the overall bearish sentiment in the market, as indicated by the Dow Jones index falling around 100 points.
• Carvana Co (NYSE: CVNA) shares also moved lower in sympathy with CarMax's disappointing earnings results, reflecting a broader negative sentiment towards the automotive retail sector.
• The market reaction suggests that investors were not impressed with CarMax's financial performance for the fourth quarter of 2024, leading to a significant decline in the stock price.

13.04.2024 - KMX Stock was up 4.9%

• CarMax (KMX) saw a notable upward trend today, potentially influenced by positive market sentiment and developments.
• Cresta's recognition as a leader in real-time revenue execution platforms could indirectly benefit CarMax by enhancing operational efficiency and customer service.
• Investors may have been encouraged by Vulcan Value Partners' favorable evaluation and successful performance in the first quarter of 2024, leading to increased interest in CarMax shares.
• Today's bullish market movement for CarMax was likely a result of a combination of positive industry updates and investor confidence in the company's prospects.

11.03.2024 - KMX Stock was down 10.7%

• CarMax stock (KMX) plummeted after reporting fiscal fourth-quarter earnings that fell short of analysts' forecasts, indicating a lackluster performance.
• The decline in CarMax shares was further exacerbated by concerns over "vehicle affordability challenges" impacting demand for used cars, leading to a negative sentiment among investors.
• The disappointing financial results and slowing demand were likely factors contributing to the bearish movement in CarMax stock, prompting prudent investors to steer clear of the company for the time being.

11.03.2024 - KMX Stock was down 11.7%

• Several factors are likely contributing to the recent bearish movement in CarMax's stock price:
• The latest earnings report indicated lower sales volume, impacting both revenue and earnings negatively.
• The overall deflation in the used car industry is presenting difficulties for CarMax and impacting investor sentiment.
• A price target reduction and a "Hold" rating by analysts may have added to the downward pressure on the stock.
• The broader market trend of decreasing stocks, as observed with Fastenal Co. and other firms, might also be influencing CarMax's current bearish trajectory.

10.06.2024 - KMX Stock was up 5.3%

• Despite receiving a "Sell" rating, CarMax's stock demonstrated an upward trend, indicating potential divergence in investor outlook regarding the company's future.
• The "Sell" rating upgrade could serve as a contrary signal, prompting a reevaluation of the stock and potentially increasing investor interest.
• The optimistic stock movement suggests investor confidence in CarMax's ability to tackle industry challenges and leverage opportunities, despite the adverse rating adjustment.

10.06.2024 - KMX Stock was up 5.9%

• The surge in CarMax's stock value could be linked to the generally positive market sentiment, as both the S&P 500 and Nasdaq marked all-time highs amidst optimism regarding potential Federal Reserve rate adjustments.
• Despite a recent upgrade of CarMax to a "sell" recommendation, investors may have reacted favorably to strong financial performance and market conditions, contributing to the upward movement of the stock.
• This showcases that stock movements are influenced by a variety of factors beyond analyst evaluations, emphasizing the need to consider the wider market landscape when making investment choices.

11.06.2024 - KMX Stock was up 5.0%

• CarMax (KMX) stock rose despite a recent "Sell" rating it received.
• Positive market sentiment and potential rate cuts by the Federal Reserve may have influenced the stock's upward movement.
• Investors might have focused on strong financial performance and market demand for used vehicles.
• The stock's rise could also be linked to the positive movement of Carvana's stock, reflecting optimism towards the used car industry in general.

01.07.2024 - KMX Stock was down 3.8%

• The insider selling of stock options by CarMax's EVP and COO might have signaled a lack of confidence in the company's future prospects, potentially contributing to the bearish movement.
• The overall market sentiment towards risk-on stocks due to potential rate cuts by the Federal Reserve could have shifted investor focus away from CarMax, leading to the bearish movement.
• The mixed quarterly results and stock price volatility mentioned in the investor letter from Vulcan Value Partners may have raised concerns among investors, further impacting CarMax's stock performance negatively.