CarMax (NYSE:KMX) Given New $31.00 Price Target at Bank of America

CarMax (NYSE:KMX) had its price target lifted by research analysts at Bank of America from $27.00 to $31.00 in a report issued on Friday,Benzinga reports. The brokerage currently has an “underperform” rating on the stock. Bank of America‘s target price points to a potential downside of 20.39% from the company’s previous close.

A number of other research firms also recently commented on KMX. Evercore ISI reissued a “reduce” rating and set a $36.00 target price on shares of CarMax in a research report on Friday. Wedbush dropped their price objective on shares of CarMax from $40.00 to $36.00 and set a “neutral” rating on the stock in a research note on Friday. Zacks Research downgraded shares of CarMax from a “hold” rating to a “strong sell” rating in a research note on Thursday, October 2nd. Benchmark reaffirmed a “hold” rating on shares of CarMax in a research report on Tuesday. Finally, Mizuho reduced their price target on CarMax from $46.00 to $36.00 and set a “neutral” rating for the company in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, eleven have assigned a Hold rating and seven have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $39.36.

CarMax Trading Down 1.0%

KMX traded down $0.40 during trading on Friday, hitting $38.94. 2,958,596 shares of the stock were exchanged, compared to its average volume of 3,665,715. The company has a debt-to-equity ratio of 2.87, a quick ratio of 1.06 and a current ratio of 2.46. The firm has a 50 day simple moving average of $39.35 and a 200 day simple moving average of $53.00. The firm has a market cap of $5.72 billion, a price-to-earnings ratio of 11.40, a P/E/G ratio of 1.01 and a beta of 1.29. CarMax has a 1 year low of $30.26 and a 1 year high of $89.47.

CarMax (NYSE:KMX) last posted its quarterly earnings results on Thursday, December 18th. The company reported $0.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.11. The business had revenue of $5.79 billion for the quarter, compared to the consensus estimate of $5.66 billion. CarMax had a return on equity of 8.51% and a net margin of 1.98%.The business’s revenue was down 6.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.81 EPS. As a group, equities analysts expect that CarMax will post 3.23 EPS for the current year.

Institutional Investors Weigh In On CarMax

A number of institutional investors and hedge funds have recently modified their holdings of KMX. Jones Financial Companies Lllp raised its position in 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 buying an additional 161 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of CarMax by 0.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,389 shares of the company’s stock worth $2,446,000 after acquiring an additional 173 shares during the period. Kaufman Rossin Wealth LLC raised its holdings in shares of CarMax by 6.2% during the second quarter. Kaufman Rossin Wealth LLC now owns 3,342 shares of the company’s stock worth $225,000 after purchasing an additional 194 shares during the last quarter. WCM Investment Management LLC lifted its position in CarMax by 0.5% during the second quarter. WCM Investment Management LLC now owns 38,991 shares of the company’s stock valued at $2,597,000 after purchasing an additional 197 shares during the period. Finally, Vanguard Personalized Indexing Management LLC lifted its position in CarMax by 1.8% during the second quarter. Vanguard Personalized Indexing Management LLC now owns 10,924 shares of the company’s stock valued at $734,000 after purchasing an additional 198 shares during the period.

CarMax News Summary

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Q3 earnings beat — CarMax reported stronger-than-expected EPS (reported ~$0.51 vs. ~0.31 consensus) and revenue of $5.79B, showing the business still generates positive cash flow and helped avoid a bigger selloff. Q3 Earnings Call Transcript
• Positive Sentiment: Auto‑finance arm remains a stabilizer — coverage and commentary note CarMax Finance produced steady profits in the quarter, supporting cash flow and buyback capacity even as retail sales weaken. The Recovery Can Continue
• Neutral Sentiment: Leadership transition and CEO search — the company named an interim CEO and initiated a permanent CEO search, adding execution uncertainty but also a chance for strategic reset. Q3 Results / Leadership Changes
• Neutral Sentiment: Some analysts remain neutral/hold — several firms (Needham, William Blair, Wedbush) reiterated hold/neutral stances, signaling mixed analyst conviction despite headline beats. Analyst Notes
• Negative Sentiment: Management will sacrifice margins to chase sales — CarMax said it will take margin hits and increase marketing spend to regain volume, a clear near‑term earnings headwind that spooked investors. Barron’s: Why the Stock Is Falling
• Negative Sentiment: Analysts cut price targets / bearish ratings — JPMorgan lowered its target to $28 and moved to underweight; Wedbush trimmed its target to $36. Those cuts increase perceived downside and pressure sentiment. JPMorgan Price Target Cut Wedbush Note
• Negative Sentiment: Multiple securities‑fraud class actions and law‑firm notices — several firms (Hagens Berman, Levi & Korsinsky, BFA, Faruqi, Rosen, Schall, etc.) have filed suits or alerts alleging misleading disclosures tied to demand pull‑forward and finance‑portfolio risks; legal risk increases potential liabilities and investor uncertainty. Hagens Berman Notice
• Negative Sentiment: Bearish flow and weak unit trends — unusual put buying (large increase vs. average) and materially lower used‑vehicle unit sales (retail down ~8%) plus ~6.9% Y/Y revenue decline underscore near‑term demand/price pressure. (See Reuters / Zacks coverage for metrics.) Zacks: Revenues Decline Y/Y

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.