CarMax, Inc. (NYSE:KMX) Receives Average Rating of “Reduce” from Brokerages

Shares of CarMax, Inc. (NYSE:KMX) have earned an average recommendation of “Reduce” from the twenty research firms that are covering the firm, MarketBeat reports. Seven investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating, one has given a buy rating and one has issued a strong buy rating on the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $39.3571.

Several research analysts have commented on KMX shares. Stephens decreased their price target on shares of CarMax from $39.00 to $36.00 and set an “equal weight” rating on the stock in a research note on Friday. Mizuho lowered their price target on shares of CarMax from $46.00 to $36.00 and set a “neutral” rating for the company in a research note on Friday. Morgan Stanley set a $35.00 price target on shares of CarMax in a research report on Monday, December 8th. Evercore ISI reiterated a “reduce” rating and issued a $36.00 price objective on shares of CarMax in a report on Friday. Finally, Wedbush lowered their target price on CarMax from $40.00 to $36.00 and set a “neutral” rating for the company in a research note on Friday.

CarMax News Summary

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Q3 earnings beat estimates: CarMax reported third‑quarter EPS above expectations and revenue slightly topped consensus, showing the business can still generate cash and operating resilience amid weaker used‑car volumes. BusinessWire: Q3 Results
• Neutral Sentiment: Interim leadership named and CEO search underway — the board installed an interim CEO and executive chair, which provides continuity but adds near‑term strategic uncertainty until a permanent CEO is appointed. Press Release
• Neutral Sentiment: Company strategy: management signaled it will cut gross margins and raise marketing spend to regain sales momentum — this could revive volumes but sacrifices near‑term profitability and complicates short‑term forecasting. Benzinga: Lower prices strategy
• Negative Sentiment: Margin pressure and profit trade‑off spooked investors — the deliberate margin reset (lower prices + higher ad spend) is driving sell‑side concerns about near‑term earnings power and has pressured the share price. Barron’s: Why stock is falling
• Negative Sentiment: Analyst cuts and downgrades: multiple firms have trimmed price targets or reiterated underperform/underweight views (recent PT cuts at Wedbush, JPMorgan and bearish notes from Bank of America), adding downward pressure on sentiment.
• Negative Sentiment: Legal risk: several law firms have filed or announced securities‑fraud class actions and are soliciting lead‑plaintiff applications with a January 2, 2026 deadline — litigation risk and potential discovery/costs increase investor uncertainty. GlobeNewsWire: Hagens Berman notice
• Negative Sentiment: Options and sentiment signals: unusual surge in put activity indicates elevated short‑term bearish bets by options traders, consistent with the negative headlines and analyst moves.

CarMax Trading Down 2.3%

NYSE KMX opened at $38.44 on Friday. The company has a quick ratio of 1.06, a current ratio of 1.99 and a debt-to-equity ratio of 2.74. The stock’s 50-day simple moving average is $39.25 and its two-hundred day simple moving average is $52.73. CarMax has a twelve month low of $30.26 and a twelve month high of $89.47. The company has a market capitalization of $5.65 billion, a price-to-earnings ratio of 12.69, a PEG ratio of 0.95 and a beta of 1.29.

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

Institutional Trading of CarMax

Institutional investors have recently made changes to their positions in the stock. CYBER HORNET ETFs LLC purchased a new position in shares of CarMax in the second quarter worth $28,000. MUFG Securities EMEA plc bought a new stake in CarMax in the 2nd quarter worth $30,000. Center for Financial Planning Inc. bought a new stake in CarMax in the 3rd quarter worth $31,000. Advisory Services Network LLC purchased a new position in shares of CarMax in the third quarter valued at about $32,000. Finally, Strengthening Families & Communities LLC raised its stake in shares of CarMax by 220.0% during the third quarter. Strengthening Families & Communities LLC now owns 880 shares of the company’s stock valued at $39,000 after acquiring 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.