JPMorgan Chase & Co. Has Lowered Expectations for CarMax (NYSE:KMX) Stock Price

CarMax (NYSE:KMX) had its price target reduced by research analysts at JPMorgan Chase & Co. from $30.00 to $28.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has an “underweight” rating on the stock. JPMorgan Chase & Co.‘s target price suggests a potential downside of 27.16% from the company’s current price.

Several other equities analysts also recently commented on the company. BNP Paribas Exane lowered their price target on CarMax from $52.00 to $35.00 and set an “underperform” rating on the stock in a report on Friday, September 26th. Needham & Company LLC restated a “hold” rating on shares of CarMax in a research note on Friday, November 7th. Wall Street Zen downgraded shares of CarMax from a “hold” rating to a “sell” rating in a report on Friday, October 3rd. Stephens dropped their target price on shares of CarMax from $39.00 to $36.00 and set an “equal weight” rating on the stock in a report on Friday. Finally, Royal Bank Of Canada boosted their target price on shares of CarMax from $34.00 to $37.00 and gave the stock a “sector perform” rating in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, eleven have assigned a Hold rating and seven have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average target price of $39.36.

CarMax Price Performance

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

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

Institutional Trading of CarMax

Several hedge funds and other institutional investors have recently bought and sold shares of KMX. Jones Financial Companies Lllp raised its position in shares of CarMax by 3.1% during the first quarter. Jones Financial Companies Lllp now owns 5,372 shares of the company’s stock valued at $419,000 after buying an additional 161 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in CarMax by 0.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,389 shares of the company’s stock valued at $2,446,000 after acquiring an additional 173 shares during the period. Kaufman Rossin Wealth LLC increased its stake in CarMax by 6.2% during the second quarter. Kaufman Rossin Wealth LLC now owns 3,342 shares of the company’s stock valued at $225,000 after acquiring an additional 194 shares during the period. WCM Investment Management LLC raised its holdings in CarMax by 0.5% in the 2nd quarter. WCM Investment Management LLC now owns 38,991 shares of the company’s stock valued at $2,597,000 after acquiring an additional 197 shares in the last quarter. Finally, Vanguard Personalized Indexing Management LLC lifted its position in shares of CarMax by 1.8% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 10,924 shares of the company’s stock worth $734,000 after acquiring an additional 198 shares during the period.

Key Headlines Impacting CarMax

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.