CarMax, Inc. (NYSE:KMX) Stock Has Consensus Price Target of $57.85 According to Brokerages

Key Points

• Analyst consensus remains “Hold”: Fourteen of 19 analysts rate CarMax a hold, with two sells and three buys. The average 12-month price target is $57.85, above the cited trading price of $53.29.
• Recent analyst views are mixed but several targets increased: Robert W. Baird and JPMorgan raised their targets to $70, while UBS set a $65 target; BNP Paribas Exane maintained a “strong sell” rating despite lifting its target to $48.
• CarMax exceeded quarterly expectations: The company reported earnings of $1.16 per share versus the $0.73 consensus estimate and revenue of $7.88 billion, up 19.5% year over year. However, the stock remains volatile, having recently fallen 15.3% over four weeks before rebounding.

Shares of CarMax, Inc. (NYSE:KMX - Get Free Report) have been assigned an average rating of "Hold" from the nineteen analysts that are presently covering the firm, MarketBeat reports. Two investment analysts have rated the stock with a sell recommendation, fourteen have given a hold recommendation and three have given a buy recommendation to the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $57.85.

KMX has been the subject of several recent analyst reports. UBS Group set a $65.00 target price on shares of CarMax in a report on Thursday. Robert W. Baird boosted their price target on shares of CarMax from $64.00 to $70.00 and gave the company an "outperform" rating in a report on Wednesday, September 30th. Truist Financial boosted their price target on shares of CarMax from $50.00 to $60.00 and gave the company a "hold" rating in a report on Wednesday, September 30th. BNP Paribas Exane restated a "strong sell" rating and issued a $48.00 price target (up from $33.00) on shares of CarMax in a research report on Wednesday, September 30th. Finally, JPMorgan Chase & Co. raised their price objective on shares of CarMax from $60.00 to $70.00 and gave the stock a "neutral" rating in a research note on Friday, September 18th.

Institutional Trading of CarMax

Hedge funds have recently modified their holdings of the business. Jupiter Topco LLC purchased a new stake in CarMax in the 2nd quarter worth approximately $245,676,000. Primecap Management Co. CA acquired a new stake in shares of CarMax during the 2nd quarter valued at $230,548,000. The Manufacturers Life Insurance Company acquired a new stake in shares of CarMax during the 2nd quarter valued at $128,001,000. Canada Pension Plan Investment Board acquired a new stake in shares of CarMax during the 2nd quarter valued at $115,465,000. Finally, Pacer Advisors Inc. purchased a new position in shares of CarMax during the 1st quarter valued at $48,634,000.

More CarMax News

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Bank of America upgraded CarMax to Buy from Underperform and raised its price target to $65 from $50. The firm cited CarMax’s improved price competitiveness, cost reductions and expected market-share gains. It also believes enforcement of the Federal Trade Commission’s price-transparency rules could provide a lasting sales benefit. BofA Securities Upgrades CarMax to Buy From Underperform, Adjusts Price Target to $65 From $50
• Positive Sentiment: Zacks upgraded KMX to Rank #1, or Strong Buy, reflecting increased optimism about the company’s earnings outlook. CarMax was also included on Zacks’ list of top value stocks, which may attract additional value-oriented interest. CarMax Upgraded to Strong Buy: Here's Why
• Positive Sentiment: Zacks Research raised numerous CarMax earnings forecasts, including estimates for fiscal 2027, fiscal 2028 and fiscal 2029. Its FY2029 EPS projection increased to $4.25 from $2.91, while FY2027 and FY2028 estimates rose to $3.39 and $3.68, respectively. These revisions reinforce expectations for improving profitability. CarMax Earnings Estimate Revisions
• Neutral Sentiment: Recent analysis compares CarMax with Genuine Parts and other retail-wholesale companies on valuation and year-to-date performance. The coverage may influence how investors assess KMX’s relative value, but it does not represent a new company operating update. KMX vs. GPC: Which Stock Is the Better Value Option?
• Negative Sentiment: CarMax had recently fallen sharply, losing 15.3% over four weeks before the latest rebound. Although technical indicators showed the stock as oversold and earnings revisions suggested a potential reversal, the decline highlights continued volatility and investor sensitivity to the company’s outlook. CarMax Loses 15.3% in 4 Weeks

CarMax Trading Up 1.3%

Shares of NYSE KMX traded up $0.67 during mid-day trading on Friday, hitting $53.29. 2,304,625 shares of the company traded hands, compared to its average volume of 3,952,594. The company has a quick ratio of 0.57, a current ratio of 2.33 and a debt-to-equity ratio of 2.66. CarMax has a 1 year low of $30.26 and a 1 year high of $65.28. The stock has a market capitalization of $7.56 billion, a price-to-earnings ratio of 26.00, a PEG ratio of 1.48 and a beta of 1.23. The business has a 50 day moving average of $58.32 and a two-hundred day moving average of $51.18.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings results on Tuesday, September 29th. The company reported $1.16 earnings per share for the quarter, topping analysts' consensus estimates of $0.73 by $0.43. The firm had revenue of $7.88 billion for the quarter, compared to analysts' expectations of $7.09 billion. CarMax had a return on equity of 7.76% and a net margin of 1.06%. CarMax's revenue was up 19.5% on a year-over-year basis. During the same quarter last year, the business posted $0.64 EPS. On average, sell-side analysts anticipate that CarMax will post 3.10 earnings per share for the current fiscal year.

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.

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