With CarMax stock price hovering near $74.70, traders are eyeing the approaching earnings date. Short interest has tapered off, signaling less bearish pressure as expectations grow for improved operating margins through digital retail expansion. Morgan Stanley sees “investor capitulation” on display as CarMax and Carvana shares have differed this year. CarMax’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for CarMax and indicate this news significantly impacted the market’s perception of the business. CarMax stock price surged intraday to $76.00 after the release of positive monthly vehicle wholesale clearance rates. This data supports projections of a steady gross margin, even amid challenging economic indicators.
