CarMax, Inc. (NYSE:KMX) Receives $41.73 Consensus PT from Analysts

Shares of CarMax, Inc. (NYSE:KMX) have been given a consensus rating of “Reduce” by the twenty brokerages that are covering the stock, MarketBeat.com reports. Five analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and two have assigned a buy rating to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $46.1333.

Several brokerages have issued reports on KMX. Royal Bank Of Canada lifted their price target on shares of CarMax from $41.00 to $45.00 and gave the company a “sector perform” rating in a research note on Thursday. Robert W. Baird raised their price objective on CarMax from $48.00 to $55.00 and gave the company an “outperform” rating in a report on Thursday. UBS Group started coverage on CarMax in a research report on Wednesday, May 27th. They issued a “neutral” rating and a $42.00 target price on the stock. Argus upgraded CarMax to a “hold” rating in a report on Thursday, April 16th. Finally, Truist Financial raised their price target on CarMax from $47.00 to $50.00 and gave the company a “hold” rating in a research note on Thursday.

CarMax Price Performance

Shares of KMX opened at $53.54 on Friday. The company has a quick ratio of 0.49, a current ratio of 2.70 and a debt-to-equity ratio of 2.87. CarMax has a twelve month low of $30.26 and a twelve month high of $71.99. The stock has a market capitalization of $7.59 billion, a P/E ratio of 34.99, a P/E/G ratio of 1.79 and a beta of 1.21. The company has a 50 day moving average of $42.56 and a 200-day moving average of $42.56.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Wednesday, June 17th. The company reported $1.31 EPS for the quarter, topping analysts’ consensus estimates of $0.96 by $0.35. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The business had revenue of $8.01 billion for the quarter, compared to analyst estimates of $7.42 billion. During the same quarter in the previous year, the firm posted $1.38 earnings per share. The firm’s revenue for the quarter was up 6.2% on a year-over-year basis. As a group, equities research analysts forecast that CarMax will post 2.31 EPS for the current fiscal year.

Trending Headlines about CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: CarMax reported fiscal Q1 adjusted EPS of $1.31 and revenue of $8.01 billion, both above analyst estimates, with revenue up 6.2% year over year. CarMax Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Several analysts turned more constructive after the report, including Stephens upgrading the stock to overweight and raising its price target to $66, while Mizuho and JPMorgan also lifted targets. CarMax Analysts Boost Their Forecasts After Upbeat Q1 Results
• Positive Sentiment: Investors reacted favorably to signs that CarMax is gaining traction on its turnaround plan, with higher wholesale demand and improved sales momentum helping support the rebound in the stock. Reuters article
• Neutral Sentiment: Management emphasized that the recovery will take time, and some analysts said they still want more evidence that profitability can improve consistently before becoming fully bullish. CNBC article
• Negative Sentiment: Profitability remains under pressure, with gross profit per vehicle and net income down year over year as CarMax used pricing actions to drive sales, which keeps margin concerns in focus. Wall Street Journal article
• Negative Sentiment: Despite the upbeat earnings report, some investors remain cautious because CarMax still faces margin compression, credit-risk concerns, and a lengthy turnaround timeline under new CEO Keith Barr. Motley Fool article

Hedge Funds Weigh In On CarMax

Institutional investors have recently added to or reduced their stakes in the company. Pacer Advisors Inc. acquired a new stake in CarMax in the first quarter valued at $48,634,000. NewEdge Advisors LLC increased its stake in shares of CarMax by 63.0% during the 1st quarter. NewEdge Advisors LLC now owns 69,568 shares of the company’s stock worth $2,893,000 after purchasing an additional 26,888 shares during the last quarter. Blue Edge Capital LLC bought a new stake in shares of CarMax in the 1st quarter valued at about $304,000. Caerus Investment Advisors LLC raised its holdings in shares of CarMax by 9.0% in the 1st quarter. Caerus Investment Advisors LLC now owns 6,396 shares of the company’s stock valued at $266,000 after purchasing an additional 528 shares during the period. Finally, Wellington Grp LLC raised its holdings in shares of CarMax by 6,500.0% in the 1st quarter. Wellington Grp LLC now owns 726 shares of the company’s stock valued at $30,000 after purchasing an additional 715 shares during the period.

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.