CarMax (NYSE:KMX) Stock Rating Lowered by Wall Street Zen

CarMax (NYSE:KMX) was downgraded by stock analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report released on Saturday.

A number of other equities analysts have also commented on KMX. Weiss Ratings reiterated a “sell (d)” rating on shares of CarMax in a report on Friday, January 9th. Evercore ISI set a $42.00 target price on CarMax in a report on Tuesday. Mizuho reduced their price target on CarMax from $46.00 to $36.00 and set a “neutral” rating on the stock in a research report on Friday, December 19th. Benchmark restated a “hold” rating on shares of CarMax in a research report on Tuesday, December 16th. Finally, Barclays lifted their price objective on CarMax from $24.00 to $28.00 and gave the stock an “underweight” rating in a research note on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, twelve have issued a Hold rating and five have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average target price of $40.07.

CarMax Stock Performance

NYSE:KMX opened at $41.38 on Friday. The stock has a market cap of $5.87 billion, a P/E ratio of 13.66, a price-to-earnings-growth ratio of 0.98 and a beta of 1.35. The company has a current ratio of 1.99, a quick ratio of 0.51 and a debt-to-equity ratio of 2.74. The stock’s 50-day moving average is $43.18 and its 200-day moving average is $46.75. CarMax has a 1-year low of $30.26 and a 1-year high of $89.47.

CarMax (NYSE:KMX) last posted its earnings results on Thursday, December 18th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.31 by $0.12. CarMax had a net margin of 1.77% and a return on equity of 7.72%. The business had revenue of $5.79 billion for the quarter, compared to the consensus estimate of $5.66 billion. During the same period last year, the company earned $0.81 EPS. The firm’s revenue was down 6.9% compared to the same quarter last year. Equities research analysts anticipate that CarMax will post 3.23 earnings per share for the current year.

Hedge Funds Weigh In On CarMax

A number of institutional investors and hedge funds have recently modified their holdings of the business. Huntington National Bank increased its stake in shares of CarMax by 62.4% in the 4th quarter. Huntington National Bank now owns 690 shares of the company’s stock valued at $27,000 after acquiring an additional 265 shares in the last quarter. CYBER HORNET ETFs LLC acquired a new stake in CarMax in the second quarter worth $28,000. MUFG Securities EMEA plc bought a new stake in CarMax in the second quarter valued at $30,000. Center for Financial Planning Inc. acquired a new position in shares of CarMax during the third quarter valued at about $31,000. Finally, Advisory Services Network LLC bought a new position in shares of CarMax during the 3rd quarter worth about $32,000.

CarMax News Summary

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: New CEO with digital and customer-focus credentials — Keith Barr, who led IHG Hotels & Resorts, will become CarMax’s CEO on March 16; investors hope his hospitality/digital background can accelerate omnichannel improvements and customer experience upgrades that could stabilize sales and margins. Keith Barr Takes CarMax Helm As Digital And Customer Focus Deepens
• Positive Sentiment: Market narrative shift toward a turnaround plan — major outlets report the hire as signaling a strategic pivot to digital and service-led differentiation, which can be seen as a credible first step to rebuild investor confidence. CarMax Taps Hotel Veteran to Lead Turnaround
• Neutral Sentiment: Formal appointment and board changes — CarMax issued an official press release confirming Barr’s appointment, the effective date (March 16), and board role shifts (interim CEO returning to director duties). This clarifies succession but is procedural. CarMax Names Keith Barr as Chief Executive Officer
• Neutral Sentiment: Media skepticism on fit — several outlets note Barr isn’t an auto-industry executive, framing the hire as unconventional; that raises questions about how transferable his hotel/digital playbook will be to used-car retail. CarMax Names a New CEO. He’s Not a Car Guy.
• Negative Sentiment: Analyst maintains bearish view — J.P. Morgan’s Rajat Gupta kept a Sell rating citing elevated execution risk and intensifying competition from online rivals like Carvana, arguing a new CEO alone may not be enough to reverse margin pressure or lower inventory risk quickly. CarMax: Elevated Execution Risk and Intensifying Carvana Competition Justify Sell Rating Despite New CEO
• Negative Sentiment: Recent sharp share decline and fundamental headwinds — commentary and reporting highlight a recent plunge in the stock tied to falling demand and worries about the company’s ability to execute a turnaround, underscoring that investor optimism may be tenuous until operational results improve. Why CarMax Stock Just Crashed

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.