CarMax, Inc. (NYSE:KMX) Receives Average Recommendation of "Reduce" from Analysts

Key Points

• CarMax has a consensus analyst rating of "Reduce" from 20 research firms, with five sell ratings, 14 hold ratings, and only one buy rating. The average 12-month price target is about $41.73.
• Recent analyst actions have been mixed, with some firms raising targets while others stayed cautious; Bank of America and UBS both issued bearish or neutral views, while Robert W. Baird upgraded the stock to outperform.
• Despite the cautious outlook, CarMax recently posted better-than-expected quarterly results, earning $0.34 per share versus estimates of $0.22 and revenue of $5.95 billion versus expectations of $5.65 billion.

CarMax, Inc. (NYSE:KMX - Get Free Report) has received a consensus recommendation of "Reduce" from the twenty research firms that are presently covering the stock, Marketbeat Ratings reports. Five analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and one has given a buy rating to the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $41.7333.

A number of research analysts have recently weighed in on the company. Bank of America assumed coverage on CarMax in a research note on Wednesday, April 15th. They issued an "underperform" rating and a $40.00 price target on the stock. Robert W. Baird increased their price target on CarMax from $44.00 to $48.00 and gave the company an "outperform" rating in a research note on Wednesday, February 18th. Royal Bank Of Canada reissued a "sector perform" rating and issued a $41.00 price target on shares of CarMax in a research note on Wednesday, April 15th. Evercore set a $45.00 price target on CarMax in a research note on Friday, April 10th. Finally, UBS Group initiated coverage on shares of CarMax in a research report on Wednesday, May 27th. They issued a "neutral" rating and a $42.00 price objective for the company.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in KMX. Intech Investment Management LLC raised its stake in shares of CarMax by 129.4% in the 3rd quarter. Intech Investment Management LLC now owns 86,444 shares of the company's stock valued at $3,879,000 after purchasing an additional 48,757 shares during the period. Silver Heights Capital Management Inc raised its stake in shares of CarMax by 39.5% in the 3rd quarter. Silver Heights Capital Management Inc now owns 926,167 shares of the company's stock valued at $41,557,000 after purchasing an additional 262,478 shares during the period. Freestone Capital Holdings LLC acquired a new stake in shares of CarMax in the 4th quarter valued at about $968,000. Dimensional Fund Advisors LP raised its stake in shares of CarMax by 33.2% in the 3rd quarter. Dimensional Fund Advisors LP now owns 3,685,201 shares of the company's stock valued at $165,358,000 after purchasing an additional 918,553 shares during the period. Finally, Rings Capital Management LLC raised its stake in shares of CarMax by 71.6% in the 3rd quarter. Rings Capital Management LLC now owns 1,074,000 shares of the company's stock valued at $48,190,000 after purchasing an additional 448,000 shares during the period.

CarMax Stock Performance

KMX stock opened at $51.27 on Friday. The business's fifty day moving average is $41.83 and its 200-day moving average is $42.15. The company has a quick ratio of 0.49, a current ratio of 2.20 and a debt-to-equity ratio of 2.93. The company has a market cap of $7.27 billion, a P/E ratio of 32.04, a price-to-earnings-growth ratio of 1.94 and a beta of 1.21. CarMax has a twelve month low of $30.26 and a twelve month high of $71.99.

CarMax (NYSE:KMX - Get Free Report) last posted its quarterly earnings results on Tuesday, April 14th. The company reported $0.34 earnings per share for the quarter, beating analysts' consensus estimates of $0.22 by $0.12. The company had revenue of $5.95 billion for the quarter, compared to the consensus estimate of $5.65 billion. CarMax had a return on equity of 7.00% and a net margin of 0.96%.The firm's quarterly revenue was down 1.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.58 EPS. Equities research analysts forecast that CarMax will post 2.28 EPS for the current year.

Key Stories Impacting CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Wall Street Zen upgraded CarMax to a Hold rating, which is a modest vote of confidence in the stock’s outlook. CarMax NYSE: KMX Upgraded by Wall Street Zen to "Hold" Rating
• Neutral Sentiment: Zacks Research published a broad earnings update with new forecasts for CarMax’s future quarters and fiscal years, signaling ongoing analyst attention but no major near-term catalyst. Stay Ahead of the Game With CarMax (KMX) Q1 Earnings: Wall Street's Insights on Key Metrics
• Negative Sentiment: Zacks Research cut earnings estimates across multiple periods for CarMax, including FY2027 EPS to $2.24 from $2.41 and FY2028 EPS to $2.86 from $3.09, suggesting softer profit expectations ahead. CarMax, Inc. NYSE: KMX earnings estimate updates
• Negative Sentiment: Additional analyst revisions also lowered near-term quarterly EPS estimates for Q1 2027, Q2 2027, Q3 2027, Q4 2027, Q1 2028, Q2 2028, Q3 2028, Q4 2028, and FY2029, reinforcing the view that earnings momentum may be under pressure. CarMax, Inc. NYSE: KMX earnings estimate updates

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.

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