CarMax (NYSE:KMX) Lowered to Sell Rating by Wall Street Zen

Wall Street Zen lowered shares of CarMax (NYSE:KMX) from a hold rating to a sell rating in a research report released on Saturday morning.

A number of other research analysts also recently weighed in on KMX. Royal Bank Of Canada raised their price target on shares of CarMax from $34.00 to $37.00 and gave the company a “sector perform” rating in a report on Friday, December 19th. JPMorgan Chase & Co. lowered their target price on shares of CarMax from $30.00 to $28.00 and set an “underweight” rating on the stock in a research report on Friday, December 19th. Barclays boosted their price target on CarMax from $24.00 to $28.00 and gave the stock an “underweight” rating in a research report on Wednesday, January 21st. Evercore upped their price target on CarMax from $38.00 to $40.00 and gave the stock an “in-line” rating in a research note on Tuesday, February 3rd. Finally, Zacks Research raised CarMax from a “strong sell” rating to a “hold” rating in a research note on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have given a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, CarMax presently has a consensus rating of “Reduce” and an average price target of $40.07.

CarMax Stock Up 1.0%

KMX opened at $41.38 on Friday. The company has a market capitalization of $5.87 billion, a PE ratio of 13.66, a price-to-earnings-growth ratio of 0.99 and a beta of 1.35. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.99 and a quick ratio of 0.51. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $89.47. The business has a 50-day moving average of $43.18 and a 200-day moving average of $46.66.

CarMax (NYSE:KMX) last announced its quarterly earnings results on Thursday, December 18th. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.31 by $0.12. The business had revenue of $5.79 billion during the quarter, compared to analysts’ expectations of $5.66 billion. CarMax had a return on equity of 7.72% and a net margin of 1.77%.The firm’s quarterly revenue was down 6.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.81 EPS. Equities research analysts forecast that CarMax will post 3.23 EPS for the current fiscal year.

Institutional Trading of CarMax

Several hedge funds have recently added to or reduced their stakes in KMX. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of CarMax by 0.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,389 shares of the company’s stock worth $2,446,000 after buying an additional 173 shares during the last quarter. Jones Financial Companies Lllp increased its position in CarMax by 3.1% during the first quarter. Jones Financial Companies Lllp now owns 5,372 shares of the company’s stock worth $419,000 after acquiring an additional 161 shares during the period. Empowered Funds LLC raised its stake in CarMax by 12.5% during the 1st quarter. Empowered Funds LLC now owns 5,273 shares of the company’s stock valued at $411,000 after purchasing an additional 585 shares during the last quarter. Intech Investment Management LLC raised its stake in CarMax by 61.7% during the 1st quarter. Intech Investment Management LLC now owns 19,143 shares of the company’s stock valued at $1,492,000 after purchasing an additional 7,307 shares during the last quarter. Finally, Acadian Asset Management LLC bought a new stake in CarMax in the 1st quarter valued at $727,000.

CarMax News Roundup

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: New CEO with digital and customer-focus credentials — Keith Barr, who led IHG Hotels & Resorts, will become CarMax’s CEO on March 16; investors hope his hospitality/digital background can accelerate omnichannel improvements and customer experience upgrades that could stabilize sales and margins. Keith Barr Takes CarMax Helm As Digital And Customer Focus Deepens
• Positive Sentiment: Market narrative shift toward a turnaround plan — major outlets report the hire as signaling a strategic pivot to digital and service-led differentiation, which can be seen as a credible first step to rebuild investor confidence. CarMax Taps Hotel Veteran to Lead Turnaround
• Neutral Sentiment: Formal appointment and board changes — CarMax issued an official press release confirming Barr’s appointment, the effective date (March 16), and board role shifts (interim CEO returning to director duties). This clarifies succession but is procedural. CarMax Names Keith Barr as Chief Executive Officer
• Neutral Sentiment: Media skepticism on fit — several outlets note Barr isn’t an auto-industry executive, framing the hire as unconventional; that raises questions about how transferable his hotel/digital playbook will be to used-car retail. CarMax Names a New CEO. He’s Not a Car Guy.
• Negative Sentiment: Analyst maintains bearish view — J.P. Morgan’s Rajat Gupta kept a Sell rating citing elevated execution risk and intensifying competition from online rivals like Carvana, arguing a new CEO alone may not be enough to reverse margin pressure or lower inventory risk quickly. CarMax: Elevated Execution Risk and Intensifying Carvana Competition Justify Sell Rating Despite New CEO
• Negative Sentiment: Recent sharp share decline and fundamental headwinds — commentary and reporting highlight a recent plunge in the stock tied to falling demand and worries about the company’s ability to execute a turnaround, underscoring that investor optimism may be tenuous until operational results improve. Why CarMax Stock Just Crashed

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.