JPMorgan Chase & Co. Increases CarMax (NYSE:KMX) Price Target to $38.00

CarMax (NYSE:KMX) had its price objective hoisted by JPMorgan Chase & Co. from $37.00 to $38.00 in a research report issued to clients and investors 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 research analysts have also weighed in on KMX. Wall Street Zen upgraded CarMax from a “sell” rating to a “hold” rating in a research report on Saturday, June 13th. Royal Bank Of Canada lifted their price objective on CarMax from $41.00 to $45.00 and gave the stock a “sector perform” rating in a research note on Thursday. Argus raised CarMax to a “hold” rating in a report on Thursday, April 16th. Robert W. Baird increased their target price on CarMax from $48.00 to $55.00 and gave the company an “outperform” rating in a research report on Thursday. Finally, Bank of America raised their target price on shares of CarMax from $40.00 to $45.00 and gave the company an “underperform” rating in a report on Wednesday. Two investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat, CarMax currently has a consensus rating of “Reduce” and an average target price of $46.13.

CarMax Price Performance

Shares of CarMax stock traded up $4.56 on Thursday, hitting $51.99. 3,854,512 shares of the company traded hands, compared to its average volume of 3,460,580. CarMax has a 52 week low of $30.26 and a 52 week high of $71.99. The business has a 50-day simple moving average of $42.36 and a 200 day simple moving average of $42.45. The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.49 and a current ratio of 2.20. The stock has a market capitalization of $7.37 billion, a P/E ratio of 32.47, a price-to-earnings-growth ratio of 1.97 and a beta of 1.21.

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

Hedge Funds Weigh In On CarMax

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Jones Financial Companies Lllp raised its position in shares of CarMax by 3.1% during the 1st quarter. Jones Financial Companies Lllp now owns 5,372 shares of the company’s stock worth $419,000 after purchasing an additional 161 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in CarMax by 0.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,389 shares of the company’s stock worth $2,446,000 after purchasing an additional 173 shares during the last quarter. Blue Trust Inc. raised its position in shares of CarMax by 20.0% in the fourth quarter. Blue Trust Inc. now owns 1,424 shares of the company’s stock valued at $55,000 after buying an additional 237 shares during the last quarter. Huntington National Bank raised its position in shares of CarMax by 62.4% in the fourth quarter. Huntington National Bank now owns 690 shares of the company’s stock valued at $27,000 after buying an additional 265 shares during the last quarter. Finally, Ossiam boosted its position in CarMax by 19.5% during the second quarter. Ossiam now owns 1,713 shares of the company’s stock worth $115,000 after acquiring an additional 280 shares during the last quarter.

CarMax News Summary

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.