CarMax (NYSE:KMX) Stock Price Expected to Rise, Robert W. Baird Analyst Says

Key Points

• Robert W. Baird raised CarMax’s price target from $64 to $70 and maintained an “outperform” rating, implying 18.06% upside from the previous close.
• CarMax reported a strong quarter, with earnings of $1.16 per share versus the $0.73 consensus estimate and revenue of $7.88 billion, up 19.5% year over year.
• Despite the bullish Baird view, broader analyst sentiment remains cautious: CarMax has a consensus “Reduce” rating and an average price target of $56.14.

CarMax (NYSE:KMX - Get Free Report) had its price target increased by analysts at Robert W. Baird from $64.00 to $70.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Robert W. Baird's price target would indicate a potential upside of 18.06% from the company's previous close.

A number of other analysts also recently issued reports on KMX. Benchmark reissued a "hold" rating on shares of CarMax in a report on Thursday, June 18th. Wall Street Zen raised CarMax from a "sell" rating to a "hold" rating in a report on Saturday, June 13th. Stephens boosted their price target on shares of CarMax from $66.00 to $74.00 and gave the company an "overweight" rating in a research note on Friday, September 25th. Morgan Stanley raised their price target on CarMax from $44.00 to $47.00 and gave the stock a "cautious" rating in a research report on Wednesday, September 23rd. Finally, Weiss Ratings raised shares of CarMax from a "sell (d)" rating to a "sell (d+)" rating in a research note on Monday, July 20th. Two equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat, CarMax currently has a consensus rating of "Reduce" and a consensus target price of $56.14.

CarMax Stock Up 4.8%

Shares of CarMax stock opened at $59.29 on Wednesday. The company has a quick ratio of 0.82, a current ratio of 2.70 and a debt-to-equity ratio of 2.87. The company has a market cap of $8.41 billion, a P/E ratio of 38.75, a PEG ratio of 1.80 and a beta of 1.17. CarMax has a 52-week low of $30.26 and a 52-week high of $65.28. The firm's 50 day moving average price is $59.56 and its 200-day moving average price is $50.20.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings data on Tuesday, September 29th. The company reported $1.16 earnings per share for the quarter, beating analysts' consensus estimates of $0.73 by $0.43. The business had revenue of $7.88 billion for the quarter, compared to analyst estimates of $7.09 billion. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The company's revenue was up 19.5% on a year-over-year basis. During the same period in the prior year, the company earned $0.64 earnings per share. On average, sell-side analysts predict that CarMax will post 2.73 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Envestnet Asset Management Inc. increased its holdings in CarMax by 1.6% during the 2nd quarter. Envestnet Asset Management Inc. now owns 932,805 shares of the company's stock valued at $49,336,000 after acquiring an additional 14,976 shares in the last quarter. State Street Corp increased 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 purchasing an additional 271,216 shares in the last quarter. Anchor Investment Management LLC purchased a new stake in CarMax during the 2nd quarter worth $37,000. The Manufacturers Life Insurance Company grew its position in CarMax by 0.9% in the second quarter. The Manufacturers Life Insurance Company now owns 2,420,139 shares of the company's stock valued at $128,001,000 after acquiring an additional 21,882 shares in the last quarter. Finally, Capstone Financial Advisors Inc. boosted its position in CarMax by 5.6% in the 2nd quarter. Capstone Financial Advisors Inc. now owns 9,500 shares of the company's stock valued at $502,000 after buying an additional 500 shares during the last quarter.

Key Stories Impacting 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

CarMax Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.