CarMax (NYSE:KMX) Stock Price Expected to Rise, Bank of America Analyst Says

CarMax (NYSE:KMX) had its target price hoisted by investment analysts at Bank of America from $27.00 to $31.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has an “underperform” rating on the stock. Bank of America‘s target price suggests a potential downside of 20.39% from the stock’s current price.

Other equities analysts have also recently issued research reports about the company. Wedbush reduced their price target on CarMax from $40.00 to $36.00 and set a “neutral” rating for the company in a report on Friday. Robert W. Baird reduced their price target on shares of CarMax from $90.00 to $60.00 and set an “outperform” rating for the company in a research report on Friday, September 26th. Stephens lowered their price objective on CarMax from $39.00 to $36.00 and set an “equal weight” rating on the stock in a report on Friday. William Blair cut CarMax from an “outperform” rating to a “market perform” rating in a report on Thursday, November 6th. Finally, Seaport Res Ptn downgraded shares of CarMax from a “strong-buy” rating to a “hold” rating in a research note on Sunday, September 28th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, eleven have given a Hold rating and seven have given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $39.36.

CarMax Stock Performance

Shares of NYSE:KMX traded down $0.40 during trading on Friday, hitting $38.94. 2,958,596 shares of the stock traded hands, compared to its average volume of 3,665,715. The company has a quick ratio of 1.06, a current ratio of 2.46 and a debt-to-equity ratio of 2.87. The company has a fifty day moving average price of $39.35 and a two-hundred day moving average price of $53.00. CarMax has a 52-week low of $30.26 and a 52-week high of $89.47. The company has a market cap of $5.72 billion, a price-to-earnings ratio of 11.40, a P/E/G ratio of 1.01 and a beta of 1.29.

CarMax (NYSE:KMX) last released its quarterly earnings results on Thursday, December 18th. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.32 by $0.11. The company had revenue of $5.79 billion for the quarter, compared to analyst estimates of $5.66 billion. CarMax had a net margin of 1.98% and a return on equity of 8.51%. The firm’s revenue was down 6.9% on a year-over-year basis. During the same quarter last year, the business earned $0.81 earnings per share. As a group, equities analysts predict that CarMax will post 3.23 EPS for the current year.

Institutional Trading of CarMax

Large investors have recently made changes to their positions in the company. Norges Bank purchased a new stake in shares of CarMax in the 2nd quarter valued at about $208,144,000. AQR Capital Management LLC lifted its stake in CarMax by 195.3% in the second quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company’s stock valued at $298,107,000 after buying an additional 2,947,996 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in shares of CarMax by 1,410.5% in the second quarter. Arrowstreet Capital Limited Partnership now owns 2,028,718 shares of the company’s stock valued at $136,350,000 after acquiring an additional 1,894,408 shares during the period. The Manufacturers Life Insurance Company boosted its holdings in shares of CarMax by 795.5% in the second quarter. The Manufacturers Life Insurance Company now owns 1,846,406 shares of the company’s stock valued at $124,097,000 after acquiring an additional 1,640,219 shares during the period. Finally, Vulcan Value Partners LLC grew its position in shares of CarMax by 135.2% during the third quarter. Vulcan Value Partners LLC now owns 2,328,120 shares of the company’s stock worth $104,569,000 after acquiring an additional 1,338,134 shares during the last quarter.

Key Stores Impacting CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Q3 earnings beat — CarMax reported stronger-than-expected EPS (reported ~$0.51 vs. ~0.31 consensus) and revenue of $5.79B, showing the business still generates positive cash flow and helped avoid a bigger selloff. Q3 Earnings Call Transcript
• Positive Sentiment: Auto‑finance arm remains a stabilizer — coverage and commentary note CarMax Finance produced steady profits in the quarter, supporting cash flow and buyback capacity even as retail sales weaken. The Recovery Can Continue
• Neutral Sentiment: Leadership transition and CEO search — the company named an interim CEO and initiated a permanent CEO search, adding execution uncertainty but also a chance for strategic reset. Q3 Results / Leadership Changes
• Neutral Sentiment: Some analysts remain neutral/hold — several firms (Needham, William Blair, Wedbush) reiterated hold/neutral stances, signaling mixed analyst conviction despite headline beats. Analyst Notes
• Negative Sentiment: Management will sacrifice margins to chase sales — CarMax said it will take margin hits and increase marketing spend to regain volume, a clear near‑term earnings headwind that spooked investors. Barron’s: Why the Stock Is Falling
• Negative Sentiment: Analysts cut price targets / bearish ratings — JPMorgan lowered its target to $28 and moved to underweight; Wedbush trimmed its target to $36. Those cuts increase perceived downside and pressure sentiment. JPMorgan Price Target Cut Wedbush Note
• Negative Sentiment: Multiple securities‑fraud class actions and law‑firm notices — several firms (Hagens Berman, Levi & Korsinsky, BFA, Faruqi, Rosen, Schall, etc.) have filed suits or alerts alleging misleading disclosures tied to demand pull‑forward and finance‑portfolio risks; legal risk increases potential liabilities and investor uncertainty. Hagens Berman Notice
• Negative Sentiment: Bearish flow and weak unit trends — unusual put buying (large increase vs. average) and materially lower used‑vehicle unit sales (retail down ~8%) plus ~6.9% Y/Y revenue decline underscore near‑term demand/price pressure. (See Reuters / Zacks coverage for metrics.) Zacks: Revenues Decline Y/Y

CarMax Company Profile

CarMax (NYSE: KMX) is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company’s inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax’s retail locations or browse the company’s online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.