CarMax, Inc. (NYSE:KMX) Stock Now Rated “Hold” by Wall Street Analysts

Shares of CarMax, Inc. (NYSE:KMX) have been assigned a consensus rating of “Hold” from the nineteen research firms that are currently covering the company, MarketBeat.com reports. Two research analysts have rated the stock with a sell rating, fourteen have issued a hold rating and three have given a buy rating to the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $57.85.

A number of equities research analysts have recently weighed in on the company. Robert W. Baird raised their price target on CarMax from $64.00 to $70.00 and gave the stock an “outperform” rating in a research note on Wednesday, September 30th. Royal Bank Of Canada boosted their price target on CarMax from $45.00 to $56.00 and gave the company a “sector perform” rating in a research note on Wednesday, September 30th. Barclays increased their price objective on CarMax from $61.00 to $67.00 and gave the stock an “equal weight” rating in a report on Wednesday, September 30th. JPMorgan Chase & Co. increased their price objective on CarMax from $60.00 to $70.00 and gave the stock a “neutral” rating in a report on Friday, September 18th. Finally, BNP Paribas Exane reaffirmed a “strong sell” rating and set a $48.00 price objective (up from $33.00) on shares of CarMax in a research report on Wednesday, September 30th.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. State Street Corp raised its holdings in shares of CarMax by 5.6% during the 2nd quarter. State Street Corp now owns 5,156,276 shares of the company’s stock valued at $272,715,000 after purchasing an additional 271,216 shares in the last quarter. Jupiter Topco LLC bought a new stake in CarMax in the second quarter worth $245,676,000. Janus Henderson Group PLC boosted its holdings in CarMax by 1.1% in the first quarter. Janus Henderson Group PLC now owns 4,580,807 shares of the company’s stock worth $190,471,000 after purchasing an additional 49,987 shares in the last quarter. Primecap Management Co. CA bought a new stake in CarMax in the second quarter worth $230,548,000. Finally, Dimensional Fund Advisors LP increased its position in CarMax by 7.3% during the first 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 during the last quarter.

Key Headlines Impacting CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Bank of America upgraded CarMax to Buy from Underperform and raised its price target to $65 from $50. The firm cited CarMax’s improved price competitiveness, cost reductions and expected market-share gains. It also believes enforcement of the Federal Trade Commission’s price-transparency rules could provide a lasting sales benefit. BofA Securities Upgrades CarMax to Buy From Underperform, Adjusts Price Target to $65 From $50
• Positive Sentiment: Zacks upgraded KMX to Rank #1, or Strong Buy, reflecting increased optimism about the company’s earnings outlook. CarMax was also included on Zacks’ list of top value stocks, which may attract additional value-oriented interest. CarMax Upgraded to Strong Buy: Here’s Why
• Positive Sentiment: Zacks Research raised numerous CarMax earnings forecasts, including estimates for fiscal 2027, fiscal 2028 and fiscal 2029. Its FY2029 EPS projection increased to $4.25 from $2.91, while FY2027 and FY2028 estimates rose to $3.39 and $3.68, respectively. These revisions reinforce expectations for improving profitability. CarMax Earnings Estimate Revisions
• Neutral Sentiment: Recent analysis compares CarMax with Genuine Parts and other retail-wholesale companies on valuation and year-to-date performance. The coverage may influence how investors assess KMX’s relative value, but it does not represent a new company operating update. KMX vs. GPC: Which Stock Is the Better Value Option?
• Negative Sentiment: CarMax had recently fallen sharply, losing 15.3% over four weeks before the latest rebound. Although technical indicators showed the stock as oversold and earnings revisions suggested a potential reversal, the decline highlights continued volatility and investor sensitivity to the company’s outlook. CarMax Loses 15.3% in 4 Weeks

CarMax Stock Up 1.3%

KMX traded up $0.67 during trading on Friday, reaching $53.29. 2,304,625 shares of the stock traded hands, compared to its average volume of 3,952,594. The stock has a market cap of $7.56 billion, a price-to-earnings ratio of 26.00, a price-to-earnings-growth ratio of 1.48 and a beta of 1.23. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $65.28. The company has a debt-to-equity ratio of 2.66, a current ratio of 2.33 and a quick ratio of 0.57. The stock’s 50-day simple moving average is $58.32 and its two-hundred day simple moving average is $51.18.

CarMax (NYSE:KMX) last issued its earnings results on Tuesday, September 29th. The company reported $1.16 EPS for the quarter, beating analysts’ consensus estimates of $0.73 by $0.43. CarMax had a return on equity of 7.76% and a net margin of 1.06%. The firm had revenue of $7.88 billion for the quarter, compared to the consensus estimate of $7.09 billion. During the same quarter in the previous year, the company posted $0.64 earnings per share. The business’s quarterly revenue was up 19.5% compared to the same quarter last year. As a group, equities research analysts expect that CarMax will post 3.10 EPS for the current year.

About CarMax

CarMax, Inc is a retailer of used vehicles operating in the United States. The company sells a broad selection of used cars, trucks and SUVs through its dealership network and online platform, offering customers the ability to research, purchase and arrange delivery for vehicles through an omnichannel shopping experience.

In addition to retail vehicle sales, CarMax provides vehicle financing through CarMax Auto Finance and offers customers access to extended protection products and related services.