CarMax (NYSE:KMX) Upgraded at Bank of America

Bank of America upgraded shares of CarMax (NYSE:KMX) from an underperform rating to a buy rating in a research report sent to investors on Thursday, MarketBeat.com reports. Bank of America currently has $65.00 price target on the stock, up from their prior price target of $50.00.

Several other analysts have also weighed in on KMX. Truist Financial upped their target price on CarMax from $50.00 to $60.00 and gave the company a “hold” rating in a report on Wednesday, September 30th. Royal Bank Of Canada raised their price target on CarMax from $45.00 to $56.00 and gave the company a “sector perform” rating in a research report on Wednesday, September 30th. BNP Paribas Exane reaffirmed a “strong sell” rating and set a $48.00 price target (up from $33.00) on shares of CarMax in a research note on Wednesday, September 30th. Weiss Ratings upgraded shares of CarMax from a “sell (d)” rating to a “sell (d+)” rating in a research report on Monday, July 20th. Finally, Mizuho boosted their price objective on shares of CarMax from $38.00 to $43.00 and gave the stock a “neutral” rating in a research report on Thursday, June 18th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, CarMax has a consensus rating of “Hold” and a consensus target price of $57.85.

CarMax Price Performance

Shares of NYSE:KMX opened at $53.29 on Thursday. The business’s 50 day simple moving average is $58.32 and its 200-day simple moving average is $51.18. The firm has a market capitalization of $7.56 billion, a price-to-earnings ratio of 26.00, a price-to-earnings-growth ratio of 1.50 and a beta of 1.23. The company has a debt-to-equity ratio of 2.66, a current ratio of 2.33 and a quick ratio of 0.57. CarMax has a 12 month low of $30.26 and a 12 month high of $65.28.

CarMax (NYSE:KMX) last released its quarterly earnings results on Tuesday, September 29th. The company reported $1.16 earnings per share for the quarter, topping 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 business had revenue of $7.88 billion for the quarter, compared to analysts’ expectations of $7.09 billion. During the same quarter in the prior year, the firm posted $0.64 EPS. The company’s revenue was up 19.5% compared to the same quarter last year. As a group, equities analysts forecast that CarMax will post 3.10 earnings per share for the current fiscal year.

Institutional Investors Weigh In On CarMax

A number of institutional investors and hedge funds have recently bought and sold shares of KMX. Global Retirement Partners LLC bought a new stake in shares of CarMax in the 2nd quarter valued at approximately $29,000. Basecamp Wealth Advisors LLC lifted its stake in CarMax by 105.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company’s stock worth $26,000 after purchasing an additional 327 shares during the last quarter. Anchor Investment Management LLC bought a new position in CarMax during the second quarter worth $37,000. Wellington Grp LLC lifted its stake in CarMax by 6,500.0% during the first quarter. Wellington Grp LLC now owns 726 shares of the company’s stock worth $30,000 after purchasing an additional 715 shares during the last quarter. Finally, Aberdeen Wealth Management LLC acquired a new position in CarMax in the second quarter worth $39,000.

Trending Headlines about 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

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.