JPMorgan Chase & Co. Forecasts Strong Price Appreciation for CarMax (NYSE:KMX) Stock

CarMax (NYSE:KMX) had its target price lifted by analysts at JPMorgan Chase & Co. from $37.00 to $38.00 in a report released on Thursday,Benzinga reports. The firm currently has an “underweight” rating on the stock. JPMorgan Chase & Co.‘s price objective suggests a potential downside of 26.91% from the stock’s current price.

A number of other equities research analysts have also recently commented on KMX. Argus raised CarMax to a “hold” rating in a research note on Thursday, April 16th. Wall Street Zen upgraded shares of CarMax from a “sell” rating to a “hold” rating in a report on Saturday, June 13th. Royal Bank Of Canada lifted their target price on CarMax from $41.00 to $45.00 and gave the stock a “sector perform” rating in a report on Thursday. Stephens upgraded CarMax from an “equal weight” rating to an “overweight” rating and set a $66.00 price target for the company in a research note on Thursday. Finally, Evercore set a $45.00 price objective on CarMax in a research report on Friday, April 10th. Two analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Reduce” and an average target price of $46.13.

CarMax Stock Up 9.6%

NYSE:KMX traded up $4.56 during mid-day trading on Thursday, hitting $51.99. 3,854,512 shares of the company’s stock were exchanged, compared to its average volume of 3,460,580. The company has a market cap of $7.37 billion, a PE ratio of 32.47, a P/E/G ratio of 1.97 and a beta of 1.21. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.20 and a quick ratio of 0.49. CarMax has a one year low of $30.26 and a one year high of $71.99. The business has a fifty day moving average price of $42.36 and a 200 day moving average price of $42.45.

CarMax (NYSE:KMX) last released its earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.96 by $0.35. CarMax had a net margin of 0.96% and a return on equity of 7.00%. The firm had revenue of $8.01 billion during the quarter, compared to analyst estimates of $7.42 billion. During the same period last year, the business earned $1.38 earnings per share. The business’s revenue was up 6.2% on a year-over-year basis. Equities analysts predict that CarMax will post 2.3 EPS for the current year.

Institutional Trading of CarMax

Hedge funds and other institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC increased its holdings in CarMax by 151.8% in the 4th quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock worth $306,429,000 after acquiring an additional 4,780,903 shares in the last quarter. SRS Investment Management LLC raised its position in shares of CarMax by 1,717.5% during the 4th quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock valued at $217,845,000 after purchasing an additional 5,327,603 shares during the period. Janus Henderson Group PLC boosted its holdings in CarMax by 1.1% in the 1st quarter. Janus Henderson Group PLC now owns 4,580,807 shares of the company’s stock worth $190,471,000 after buying an additional 49,987 shares during the period. Dimensional Fund Advisors LP increased its stake in CarMax by 7.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,275,663 shares of the company’s stock worth $177,767,000 after buying an additional 289,768 shares in the last quarter. Finally, Norges Bank bought a new stake in CarMax during the fourth quarter valued at about $159,232,000.

Key Headlines Impacting CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: CarMax beat Wall Street expectations for fiscal Q1, posting EPS of $1.31 versus estimates around $0.94-$0.96 and revenue of $8.01 billion versus about $7.42 billion expected, supported by stronger wholesale demand, higher used-vehicle prices, and cost control. CarMax Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Management outlined a new four-pillar strategy focused on pricing, digital simplification, cost control, and finance penetration, which investors see as a clearer roadmap for a turnaround and longer-term growth. KMX Q1 Earnings Call Puts Four-Pillar Plan at Center
• Positive Sentiment: Several analysts raised their outlooks after the report, including Stephens upgrading KMX to overweight with a $66 target, reflecting confidence that improving execution could unlock more upside. Analyst upgrade and price target update
• Positive Sentiment: CarMax’s new CEO emphasized operational improvements and customer satisfaction initiatives, which some investors view as early signs of a more disciplined growth phase. CarMax In Reverse? Why You Should Buy Now Before the Big Catalysts Emerge
• Neutral Sentiment: Mizuho raised its price target to $43 but kept a neutral rating, and other analysts noted the results were encouraging but not yet enough to prove a full margin recovery. CarMax Analysts Boost Their Forecasts After Upbeat Q1 Results
• Negative Sentiment: Despite the beat, profit quality remains a concern: retail gross profit per unit fell and management pointed to persistent margin pressure, making traders cautious about how fast earnings can normalize. Reuters article on higher prices and wholesale demand
• Negative Sentiment: Shares also came under pressure because investors appeared to “sell the news” after a strong recent run, as the market wanted more proof that the turnaround will translate into sustained profit growth. CarMax shares fall after used car retailer reports earnings beats, CEO details turnaround plan

About CarMax

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.