Wedbush Lowers CarMax (NYSE:KMX) Price Target to $36.00

CarMax (NYSE:KMX) had its price objective reduced by stock analysts at Wedbush from $40.00 to $36.00 in a research note issued to investors on Friday, MarketBeat.com reports. The firm currently has a “neutral” rating on the stock. Wedbush’s price objective indicates a potential downside of 6.35% from the stock’s previous close.

KMX has been the topic of several other reports. Barclays dropped their target price on CarMax from $28.00 to $24.00 and set an “underweight” rating on the stock in a report on Friday. Needham & Company LLC reiterated a “hold” rating on shares of CarMax in a research note on Friday, November 7th. Weiss Ratings reissued a “sell (d)” rating on shares of CarMax in a research report on Tuesday, October 14th. Seaport Res Ptn cut shares of CarMax from a “strong-buy” rating to a “hold” rating in a report on Sunday, September 28th. Finally, Mizuho dropped their target price on shares of CarMax from $46.00 to $36.00 and set a “neutral” rating on the stock in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, eleven have given a Hold rating and seven have assigned a Sell rating to the company’s stock. According to data from MarketBeat, CarMax has an average rating of “Reduce” and an average price target of $39.36.

CarMax Price Performance

Shares of 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 firm’s 50-day simple moving average is $39.25 and its two-hundred day simple moving average is $52.73. The stock has a market cap of $5.65 billion, a PE 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 quick ratio of 1.06 and a current ratio of 1.99.

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

Institutional Inflows and Outflows

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