CarMax (NYSE:KMX) Stock Price Expected to Rise, Bank of America Analyst Says

CarMax (NYSE:KMX) had its price target boosted by investment analysts at Bank of America from $27.00 to $31.00 in a research report issued on Friday,Benzinga reports. The firm currently has an “underperform” rating on the stock. Bank of America‘s price target indicates a potential downside of 19.36% from the company’s previous close.

A number of other equities analysts also recently commented on the company. Mizuho cut their price objective on CarMax from $46.00 to $36.00 and set a “neutral” rating on the stock in a report on Friday. Benchmark restated a “hold” rating on shares of CarMax in a report on Tuesday. Royal Bank Of Canada lifted their price target on shares of CarMax from $34.00 to $37.00 and gave the company a “sector perform” rating in a research report on Friday. Oppenheimer reissued a “market perform” rating on shares of CarMax in a research report on Friday, September 26th. Finally, Robert W. Baird reduced their target price on shares of CarMax from $90.00 to $60.00 and set an “outperform” rating on the stock in a report on Friday, September 26th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, eleven have issued a Hold rating and seven have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, CarMax currently has a consensus rating of “Reduce” and a consensus price target of $39.36.

CarMax Stock Performance

NYSE:KMX opened at $38.44 on Friday. The company has a market cap of $5.65 billion, a P/E ratio of 12.69, a P/E/G ratio of 0.95 and a beta of 1.29. The firm’s 50 day moving average is $39.25 and its two-hundred day moving average is $52.73. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $89.47. The company has a quick ratio of 1.06, a current ratio of 1.99 and a debt-to-equity ratio of 2.74.

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

Institutional Investors Weigh In On CarMax

Large investors have recently added to or reduced their stakes in the company. Public Sector Pension Investment Board increased its stake in CarMax by 9.2% during the 1st quarter. Public Sector Pension Investment Board now owns 21,090 shares of the company’s stock worth $1,643,000 after buying an additional 1,771 shares during the period. Cresset Asset Management LLC grew its stake in shares of CarMax by 85.8% during the first quarter. Cresset Asset Management LLC now owns 7,276 shares of the company’s stock valued at $567,000 after acquiring an additional 3,359 shares in the last quarter. Raymond James Financial Inc. grew its stake in shares of CarMax by 2.2% during the first quarter. Raymond James Financial Inc. now owns 388,257 shares of the company’s stock valued at $30,253,000 after acquiring an additional 8,358 shares in the last quarter. Korea Investment CORP increased its position in shares of CarMax by 17.3% during the first quarter. Korea Investment CORP now owns 77,268 shares of the company’s stock worth $6,021,000 after acquiring an additional 11,400 shares during the last quarter. Finally, Wellington Management Group LLP lifted its stake in shares of CarMax by 34.2% in the first quarter. Wellington Management Group LLP now owns 815,461 shares of the company’s stock worth $63,541,000 after acquiring an additional 207,665 shares in the last quarter.

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 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.