CarMax, Inc. (NYSE:KMX) Receives $39.36 Consensus PT from Brokerages

CarMax, Inc. (NYSE:KMX) has earned a consensus rating of “Reduce” from the twenty ratings firms that are presently covering the firm, Marketbeat Ratings reports. Seven analysts have rated the stock with a sell recommendation, eleven have assigned a hold recommendation, one has issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month target price among brokerages that have covered the stock in the last year is $39.3571.

A number of analysts have recently issued reports on KMX shares. Robert W. Baird dropped their price target on CarMax from $90.00 to $60.00 and set an “outperform” rating for the company in a research report on Friday, September 26th. Zacks Research lowered shares of CarMax from a “hold” rating to a “strong sell” rating in a research report on Thursday, October 2nd. Morgan Stanley set a $35.00 price target on shares of CarMax in a report on Monday, December 8th. Wedbush lowered their price objective on shares of CarMax from $40.00 to $36.00 and set a “neutral” rating on the stock in a research report on Friday, December 19th. Finally, Oppenheimer reiterated a “market perform” rating on shares of CarMax in a research report on Friday, September 26th.

More CarMax News

Here are the key news stories impacting CarMax this week:

• Neutral Sentiment: Benchmark (Michael Albanese) maintained a Hold rating on KMX, citing strategic transition and leadership uncertainty — this signals analyst caution but not a downgrade. Maintaining Hold on CarMax
• Negative Sentiment: Labaton Keller Sucharow filed a securities class action (Indiana Public Retirement System v. CarMax, Inc.) alleging claims under §§10(b) and 20(a) — a formal complaint that escalates legal exposure for CarMax and could drive litigation costs and settlements. Labaton Keller Complaint
• Negative Sentiment: A wave of plaintiff‑side firms (Hagens Berman, Levi & Korsinsky, Kessler Topaz, Bronstein Gewirtz, Faruqi, Rosen, Bernstein Liebhard, Bleichmar Fonti & Auld and others) are notifying investors, expanding or pressing class periods and highlighting a January 2, 2026 lead‑plaintiff deadline — increasing the likelihood of consolidated, high‑stakes litigation. Representative notice: Hagens Berman. Hagens Berman Notice
• Negative Sentiment: Several notices tie the litigation to a ~24% stock drop after the CEO departure and alleged misstatements; heightened media/legal attention tends to amplify short‑term selling pressure and increase uncertainty on management continuity. BFA Law Notice
• Negative Sentiment: JPMorgan reduced its price target on KMX to $28 — a tangible analyst downgrade in valuation that can pressure sentiment and provide a reference point for investors re‑pricing the shares. JPMorgan Price Target Cut

CarMax Stock Up 0.9%

KMX opened at $38.48 on Friday. The company has a fifty day moving average price of $39.03 and a 200-day moving average price of $52.25. The firm has a market capitalization of $5.65 billion, a P/E ratio of 12.70, a price-to-earnings-growth ratio of 0.93 and a beta of 1.29. 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 one year low of $30.26 and a one year high of $89.47.

CarMax (NYSE:KMX) last posted its quarterly earnings data on Thursday, December 18th. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.11. CarMax had a return on equity of 7.72% and a net margin of 1.77%.The company had revenue of $5.79 billion during the quarter, compared to analyst estimates of $5.66 billion. During the same quarter last year, the company earned $0.81 earnings per share. The firm’s quarterly revenue was down 6.9% on a year-over-year basis. Equities research analysts expect that CarMax will post 3.23 earnings per share for the current fiscal year.

Institutional Investors Weigh In On CarMax

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. CYBER HORNET ETFs LLC purchased a new stake in shares of CarMax during the second quarter worth about $28,000. MUFG Securities EMEA plc purchased a new position in CarMax during the 2nd quarter valued at about $30,000. Center for Financial Planning Inc. bought a new position in CarMax during the 3rd quarter valued at approximately $31,000. Advisory Services Network LLC purchased a new stake in CarMax in the 3rd quarter worth approximately $32,000. Finally, Strengthening Families & Communities LLC grew its position in shares of CarMax by 220.0% in the 3rd quarter. Strengthening Families & Communities LLC now owns 880 shares of the company’s stock worth $39,000 after buying an additional 605 shares during the last quarter.

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.