BNP Paribas Exane Reaffirms “Underperform” Rating for CarMax (NYSE:KMX)

CarMax (NYSE:KMX)‘s stock had its “underperform” rating reissued by stock analysts at BNP Paribas Exane in a report issued on Wednesday, Benzinga reports. They currently have a $48.00 price target on the stock, up from their previous price target of $33.00. BNP Paribas Exane’s price objective indicates a potential downside of 19.04% from the company’s current price.

Several other equities analysts also recently issued reports on the stock. JPMorgan Chase & Co. upped their price objective on shares of CarMax from $60.00 to $70.00 and gave the company a “neutral” rating in a research note on Friday, September 18th. Morgan Stanley upped their target price on CarMax from $44.00 to $47.00 and gave the company a “cautious” rating in a research report on Wednesday, September 23rd. Royal Bank Of Canada raised their price target on CarMax from $41.00 to $45.00 and gave the stock a “sector perform” rating in a research note on Thursday, June 18th. Stephens lifted their price target on CarMax from $66.00 to $74.00 and gave the stock an “overweight” rating in a research report on Friday, September 25th. Finally, Truist Financial boosted their price objective on CarMax from $47.00 to $50.00 and gave the company a “hold” rating in a research note on Thursday, June 18th. Two analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, CarMax currently has an average rating of “Reduce” and a consensus target price of $53.14.

CarMax Stock Up 4.8%

Shares of NYSE:KMX opened at $59.29 on Wednesday. The company has a market capitalization of $8.41 billion, a PE ratio of 38.75, a P/E/G ratio of 1.80 and a beta of 1.17. The company has a current ratio of 2.70, a quick ratio of 0.82 and a debt-to-equity ratio of 2.87. CarMax has a twelve month low of $30.26 and a twelve month high of $65.28. The firm has a 50 day simple moving average of $59.56 and a 200-day simple moving average of $50.20.

CarMax (NYSE:KMX) last posted its earnings results on Tuesday, September 29th. The company reported $1.16 EPS for the quarter, beating analysts’ consensus estimates of $0.73 by $0.43. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The firm had revenue of $7.88 billion for the quarter, compared to the consensus estimate of $7.09 billion. On average, equities analysts predict that CarMax will post 2.73 EPS for the current fiscal year.

Institutional Investors Weigh In On CarMax

Hedge funds have recently modified their holdings of the stock. Envestnet Asset Management Inc. grew its position in CarMax by 1.6% in the 2nd quarter. Envestnet Asset Management Inc. now owns 932,805 shares of the company’s stock valued at $49,336,000 after buying an additional 14,976 shares during the last quarter. State Street Corp raised its position in CarMax by 5.6% during the 2nd quarter. State Street Corp now owns 5,156,276 shares of the company’s stock worth $272,715,000 after buying an additional 271,216 shares during the last quarter. Anchor Investment Management LLC purchased a new position in CarMax during the 2nd quarter worth $37,000. The Manufacturers Life Insurance Company lifted its stake in shares of CarMax by 0.9% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,420,139 shares of the company’s stock worth $128,001,000 after acquiring an additional 21,882 shares during the period. Finally, Capstone Financial Advisors Inc. lifted its stake in shares of CarMax by 5.6% in the 2nd quarter. Capstone Financial Advisors Inc. now owns 9,500 shares of the company’s stock worth $502,000 after acquiring an additional 500 shares during the period.

Trending Headlines about CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Strong earnings and revenue beat: CarMax reported adjusted earnings of $1.16 per share, versus the roughly $0.73 consensus estimate and $0.64 a year earlier. Revenue rose 19.5% to $7.88 billion, exceeding expectations by approximately $850 million. CarMax Reports Second Quarter Fiscal 2027 Results
• Positive Sentiment: Used-vehicle demand improved: Combined retail and wholesale unit sales increased 14.7%, while retail used-unit sales rose 13.8% and comparable-store used-unit sales climbed 13.0%. Management said pricing actions helped support sales, and even lower-income customers appeared relatively resilient despite affordability pressures. CarMax Says Even Its Lowest-Income Customers Are Holding Up
• Positive Sentiment: Capital returns may resume: CarMax indicated that share repurchases are expected to restart in the third quarter, providing an additional potential catalyst for the stock. CarMax Just Gave Investors a Better Reason to Believe in the Turnaround

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.