Brokerages Set CarMax, Inc. (NYSE:KMX) Target Price at $41.21

Shares of CarMax, Inc. (NYSE:KMX) have been given a consensus rating of “Reduce” by the nineteen analysts that are presently covering the stock, Marketbeat Ratings reports. Five investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and one has assigned a buy rating to the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $41.2143.

A number of research firms recently commented on KMX. Barclays lowered their price target on shares of CarMax from $28.00 to $26.00 and set an “underweight” rating on the stock in a research report on Thursday, April 16th. Robert W. Baird raised their price target on shares of CarMax from $44.00 to $48.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 18th. Argus raised shares of CarMax to a “hold” rating in a research report on Thursday, April 16th. Stephens raised their price target on shares of CarMax from $39.00 to $43.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 2nd. Finally, Bank of America began coverage on shares of CarMax in a research report on Wednesday, April 15th. They set an “underperform” rating and a $40.00 price target on the stock.

CarMax Price Performance

Shares of KMX opened at $38.49 on Friday. The firm has a market capitalization of $5.46 billion, a PE ratio of 24.06, a PEG ratio of 1.46 and a beta of 1.19. The company’s 50-day moving average is $41.77 and its 200-day moving average is $41.54. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $71.99. 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 (NYSE:KMX) last issued its quarterly earnings data on Tuesday, April 14th. The company reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.12. The company had revenue of $5.95 billion for the quarter, compared to analyst estimates of $5.65 billion. CarMax had a net margin of 0.96% and a return on equity of 7.00%. The company’s revenue was down 1.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.58 earnings per share. Equities analysts forecast that CarMax will post 2.34 EPS for the current year.

Key Stories Impacting CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Zacks Research raised multiple near?term and FY EPS estimates for KMX (Q3/Q4 2027, Q2/Q3/Q4 2028 and FY2028/FY2029) and now models higher FY2028 and FY2029 earnings while keeping a “Hold” rating — a sign analysts expect improving profitability that could support a recovery if results follow. Zacks EPS revisions for CarMax
• Neutral Sentiment: A financial roundup named one cash?producing stock and flagged two risky names; CarMax was mentioned in that context (mixed signal). The mention may affect perception but lacks company?specific new fundamentals. 1 cash-producing stock with impressive fundamentals and 2 we find risky
• Negative Sentiment: Pomerantz LLP announced an investor investigation into CarMax, citing potential claims on behalf of investors — this introduces legal risk, potential litigation costs, and investor uncertainty. Pomerantz investigates CarMax
• Negative Sentiment: Brokerage coverage has become more cautious — consensus brokerage recommendation is “Reduce”, reflecting weaker sell?side sentiment that can pressure the stock via downgrades and selling. CarMax consensus “Reduce” by brokerages

Hedge Funds Weigh In On CarMax

A number of hedge funds have recently bought and sold shares of the business. SRS Investment Management LLC grew its stake in CarMax by 1,717.5% during the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock worth $217,845,000 after buying an additional 5,327,603 shares in the last quarter. AQR Capital Management LLC grew its stake in CarMax by 151.8% during the fourth quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock worth $306,429,000 after buying an additional 4,780,903 shares in the last quarter. Norges Bank acquired a new stake in CarMax during the fourth quarter worth about $159,232,000. Arrowstreet Capital Limited Partnership grew its stake in CarMax by 73.7% during the third quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock worth $158,074,000 after buying an additional 1,494,205 shares in the last quarter. Finally, Vulcan Value Partners LLC grew its stake in 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 buying an additional 1,338,134 shares in the last quarter.

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.