CarMax (NYSE:KMX) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

CarMax (NYSE:KMX) had its price objective hoisted by research analysts at JPMorgan Chase & Co. from $28.00 to $35.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm presently has an “underweight” rating on the stock. JPMorgan Chase & Co.‘s target price would indicate a potential downside of 13.62% from the company’s current price.

Several other analysts have also issued reports on KMX. Weiss Ratings reiterated a “sell (d)” rating on shares of CarMax in a report on Wednesday, April 8th. Bank of America initiated coverage on CarMax in a report on Wednesday. They set an “underperform” rating and a $40.00 target price on the stock. Royal Bank Of Canada restated a “sector perform” rating and issued a $41.00 price objective on shares of CarMax in a research note on Wednesday. Wall Street Zen upgraded CarMax from a “sell” rating to a “hold” rating in a research note on Saturday, April 4th. Finally, Evercore set a $45.00 price objective on CarMax in a research note on Friday, April 10th. One equities research analyst has rated the stock with a Buy rating, twelve have issued a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat, CarMax currently has a consensus rating of “Reduce” and a consensus target price of $41.21.

CarMax Stock Performance

KMX opened at $40.52 on Wednesday. CarMax has a 52-week low of $30.26 and a 52-week high of $71.99. The firm has a market capitalization of $5.75 billion, a PE ratio of 25.32, a PEG ratio of 1.07 and a beta of 1.30. The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.51 and a current ratio of 2.20. The business’s 50-day simple moving average is $42.77 and its 200 day simple moving average is $41.96.

CarMax (NYSE:KMX) last released its earnings results on Tuesday, April 14th. The company reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.12. CarMax had a return on equity of 7.00% and a net margin of 0.96%.The business had revenue of $5.95 billion for the quarter, compared to analyst estimates of $5.65 billion. During the same quarter in the prior year, the company posted $0.58 earnings per share. CarMax’s revenue was down 1.0% on a year-over-year basis. As a group, sell-side analysts expect that CarMax will post 3.23 earnings per share for the current fiscal year.

Hedge Funds Weigh In On CarMax

Institutional investors and hedge funds have recently made changes to their positions in the company. Silver Heights Capital Management Inc grew its position in shares of CarMax by 39.5% in the third quarter. Silver Heights Capital Management Inc now owns 926,167 shares of the company’s stock valued at $41,557,000 after purchasing an additional 262,478 shares during the last quarter. Intech Investment Management LLC grew its position in shares of CarMax by 129.4% in the third quarter. Intech Investment Management LLC now owns 86,444 shares of the company’s stock valued at $3,879,000 after purchasing an additional 48,757 shares during the last quarter. True North Advisors LLC grew its position in CarMax by 66.6% during the third quarter. True North Advisors LLC now owns 123,742 shares of the company’s stock worth $5,552,000 after buying an additional 49,450 shares in the last quarter. Dimensional Fund Advisors LP grew its position in CarMax by 33.2% during the third quarter. Dimensional Fund Advisors LP now owns 3,685,201 shares of the company’s stock worth $165,358,000 after buying an additional 918,553 shares in the last quarter. Finally, Rings Capital Management LLC grew its position in CarMax by 71.6% during the third quarter. Rings Capital Management LLC now owns 1,074,000 shares of the company’s stock worth $48,190,000 after buying an additional 448,000 shares in the last quarter.

Trending Headlines about CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Q4 results beat expectations — CarMax reported $0.34 EPS vs. $0.22 expected and revenue topped estimates, evidence of underlying sales strength. CarMax Q4 Earnings Beat Estimates
• Neutral Sentiment: Management outlined strategic moves (price cuts to reaccelerate retail sales and cost controls) that are intended to restore demand but will pressure margins in the near term. CarMax Q4 2026 Earnings Call Highlights
• Negative Sentiment: Guidance and margin outlook disappointed — commentary pointed to contracting retail margins, impaired cash flow and a suspension of buybacks, which led markets to focus on near-term profitability risk. Carmax at 5-Year Lows
• Negative Sentiment: Analysts moved to more negative stances — Bank of America initiated coverage with an “underperform”/sell view (PT $40) and other firms highlighted margin/demand headwinds; JPMorgan raised its price target but kept an underweight rating, indicating continued bearish positioning. Margin Compression and Sell Rating JPMorgan Price Target Change
• Negative Sentiment: Market reaction: coverage and media noted share weakness after the release — headlines emphasize the stock pullback despite the beat, centered on price cuts and near-term margin damage. CarMax Exceeds Q1 Expectations But Stock Drops

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.