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KMX

CarMax Hits Speed Bump: Shares Drop 13% Amid Delayed TargetsCarMax ( NYSE:KMX ), the pre-owned vehicle giant, faces a bumpy road ahead as it misses analyst expectations for its fourth-quarter results and pushes back its long-term financial targets. The company's shares took a nosedive, plunging as much as 13% in premarket trading. Blaming ongoing vehicle affordability challenges and inflationary pressures, CarMax ( NYSE:KMX ) now expects to reach its target of selling over 2 million combined retail and wholesale units annually between 2026 and 2030, a delay from its previous goal of achieving this milestone by 2026. The ripple effect of CarMax's disappointing performance extended to other auto retailers like Carvana and AutoNation, which also saw declines in premarket trading. Analysts express concern over the company's future prospects, with Truist Securities' Scot Ciccarelli cautioning that the recovery may not be as robust as anticipated. CFRA Research's Garrett Nelson highlights the impact of "higher-for-longer" interest rates on car sales volumes, exacerbated by inventory overhang on pricing. The pandemic-induced surge in vehicle inventories has led to fierce competition among pre-owned retailers, driving down prices and squeezing profit margins. CarMax ( NYSE:KMX ), like its counterparts, now faces the challenge of balancing inventory levels and navigating the turbulent waters of inflation. With CarMax ( NYSE:KMX ) warning of further profit-sharing revenue hits due to inflationary pressures, investors brace for continued turbulence in the used-car market. As the industry grapples with evolving dynamics, CarMax's ability to steer through these challenges will be closely watched by investors and industry observers alike." Technical Outlook CarMax ( NYSE:KMX ) stock is trading within the overbought region with a Relative Strength Index (RSI) of 27.23. The stock is trading below the respective Moving Averages further validating to the Bearish thesis.
NYSE:KMXShort
by DEXWireNews
KMX, 10d+/-48.81%falling cycle -48.81% more than 10 days. ================================================================================================================================================================== This data is analyzed by robots. Analyze historical trends based on The Adam Theory of Markets (20 moving averages/60 moving averages/120 moving averages/240 moving averages) and estimate the trend in the next 10 days. The white line is the robot's expected price, and the upper and lower horizontal line stop loss and stop profit prices have no financial basis. The results are for reference only.
NYSE:KMXShort
by Tonyder
VRM 35K calls block expiring soon! Extremely Bullish !!Yesterday i was amazed to see a block of 35K calls worth of $525K on VRM expiring May 20. And i will explain to you why they might be extremely profitable! Since its highs, VRM lost 97.76% of its value and it`s not a crypto, by the way, it`s a company that makes billions of dollars. The calls are related to the first Quarter earnings on May 9, so they expire 11 days after the results. What should we expect from the earnings? - revenue growth! last quarter their Ecommerce revenue was $738.7 million, up 159% year over year; gross profit was also up a lot, 64% YoY! - a strong financing business! On February 01, 2022, Vroom announced the successful completion of its acquisition of United Auto Credit Corporation (UACC), a proven leader in automotive finance for $300 Mil. Soon after the news above was released, on 2/3/2022, Bank of America set a price target for VRM of $30.00 So how come it is trading at $1.62??? Well, 27.11% of the share float is Shorted! Big institutional owners like Vanguard, Blackrock, Morgan Stanley, JPMorgan Chase have average entries at $40! And many of them had recently averaged down their investment, like Goldman Sachs which reported on 2/17/2022 an increase of 104.5% in their ownership in VRM, respectively 1,753,977 shares worth $18.93Mil for a total of 1.281% of the company. Their average is now $22.55. So if they are happy with a 22 average, how come we don`t we buy it at $1.62? VRM has a Price to book ratio of 0.24 now. A P/B ratio less than 1 means that the stock is trading at less than its book value, it`s way undervalued! the Price to Sales ratio is only 0.07! By comparison, its rival, CVNA (Carvana), has a P/S of 1.16. Based on Q4 Financials, If they liquidated the inventory, cash in on all receivables and pay off the $600M senior note, each shareholder will receive approximatively $6.5 per share. If we look at the daily timeframe, VRM formed a falling wedge pattern which is extremely bullish as you know, on an oversold area, 25 on the RSI. Institutional ownership in VRM is high, 92.19% 52 Week Range 1.58 - 48.80 Market Cap of only $235.47Mil! Can be a buyout at this point! 2021 Revenue: $3.18Bil All things considered, fundamental and technical analysis, i think that the 35K calls will be in the money, extremely profitable, by the time of expiration. My short term price target for VRM is $5.5, i think it`s trading so low because it`s heavily shorted by the hedge funds, to have a better average on their entry. Looking forward to read your opinion about it!
VLong
by TopgOptions
2
Possible Swing Idea On Carmax or #KMX.I spotted a potential Swing Idea on KMX. I'm eyeing 140-145 calls. I haven't determined an expiration date yet, but I'm aiming for next month, maybe even Dec. depending on the contract prices. I also have a 1hr markup which is showing me a possible bounce coming off the 200MA. WIll this happen anytime soon, that I don't know. However, I'm liking the pullback to support on the Daily, with the 1hr chart confirming that area of Support as well. Still, I'll be patient and wait for a clean entry above 138.55, which will be the confirmation bar on the Daily Chart and will trigger my entry for the 140-145 calls for a Swing Play. On management, I plan on watching for price reaction at 140(psychological level). If price continues that sequential move back up, just as price sold off in a sequential manner, I will hold for the completion of sed move back to 143-145. If price stalls at 140, I may look to reposition and wait for a break over 140 for the next possible leg up. Granted this is all theory, but a TRADING PLAN as well. My thought process in looking for plays is: Look for reasons not to take a trade..If there isn't one, get prepped!" If this play dies & never alerts my entry, then I keep it moving. No harm no foul. The beauty of Swing Trading, if you can read the chart, you can sometimes see the move coming a mile away, you just NEVER jump the gun. Entry- IDENTIFIED Stop Loss- IDENTIFIED EXIT(s)- IDENTIFIED Risk Management/Risk To Reward Ratio- IDENTIFIED There goes FOMO, GREED & FEAR & here comes the thought process of a calm & confident Trader. Win, Lose or Breakeven..I Identified my play & built a plan around it. All that's left to do now, is manage the trade when it becomes time to manage the trade, & not profit watch!
NYSE:KMXLong
by DayTraderEarl
How CarMax could reach it's estimated 6.5% move into earningsAccording to the option market, KMX is looking to make a 6.5% move based off of $133. This meaning 6.5% to the upside or downside is expected. Due to the current set-up, in my opinion CarMax could reach that 6.5% before earnings rolls out on Thursday. Demand above $134 could trace a realistic move to test $138-$139 by earnings, and has room to even create a healthy shot above $140 before a pullback. $132 downside confirmation is set for current stop loss (current lower-side demand)
NYSE:KMXLong
by rickhubbard10
Bearish looking Upward wedgeIf you look at the 1M and 1W, you will see solid resistance and at the 1W you can see kind of like an upward wedge and a red inverted hammer wick. Zoom in a little to 1D and we will see kind of like an upward wedge formation going on, and that it is currently retracing from resistance, but some consolidation here could happen. From here on we will need to wait a few days, perhaps until next week or so to see what will happen next because nothing is guaranteed. I am looking for a nice short entry at the 1H...
NYSE:KMX
by gsotolongo
1
KMX - DAILY CHART Hi, today we are going to talk about CarMax and its current landscape. CarMax is poised to receive increasing attention from the market as relevant events are taking place. The company reports its earnings on Friday before the opening bell. With a good year, this report could be an event that will boost its positive momentum. The auto retail company has been the sector spearhead. With solid fundamentals, the company can continue to be benefited from the changes that e-commerce has inflicted on the automotive retail industry, which has been responsible for a small percentage of the sales, holding them a huge potential of growth. Thank you for reading and leave your comments if you like. To have access to our exclusive contents, join the Traders Heaven today! Link Below. Disclaimer: All content of Golden Dragon has only educational and informational purposes, and never should be used or take it as financial advice.
NYSE:KMX
by Igor-Silva
1