Brokerages Set CarMax, Inc. (NYSE:KMX) Price Target at $39.93

Shares of CarMax, Inc. (NYSE:KMX) have received an average recommendation of “Reduce” from the nineteen ratings firms that are covering the company, MarketBeat Ratings reports. Five analysts have rated the stock with a sell recommendation, twelve have issued a hold recommendation, one has given a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year price target among analysts that have updated their coverage on the stock in the last year is $40.0667.

A number of equities analysts recently weighed in on KMX shares. Morgan Stanley set a $35.00 price target on CarMax in a report on Monday, December 8th. Evercore increased their price objective on shares of CarMax from $38.00 to $40.00 and gave the company an “in-line” rating in a report on Tuesday, February 3rd. Benchmark reiterated a “hold” rating on shares of CarMax in a research report on Tuesday, December 16th. Weiss Ratings reissued a “sell (d)” rating on shares of CarMax in a research note on Friday, January 9th. Finally, Needham & Company LLC restated a “hold” rating on shares of CarMax in a research report on Friday, November 7th.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC raised its position in shares of CarMax by 195.3% in the second quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company’s stock valued at $298,107,000 after buying an additional 2,947,996 shares during the last quarter. Norges Bank purchased a new stake in CarMax during the 4th quarter valued at about $159,232,000. Dimensional Fund Advisors LP raised its holdings in CarMax by 8.2% in the 4th quarter. Dimensional Fund Advisors LP now owns 3,985,895 shares of the company’s stock valued at $154,023,000 after acquiring an additional 300,694 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in CarMax by 73.7% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock worth $158,074,000 after purchasing an additional 1,494,205 shares in the last quarter. Finally, Invesco Ltd. lifted its stake in CarMax by 14.2% in the 3rd quarter. Invesco Ltd. now owns 3,425,737 shares of the company’s stock worth $153,713,000 after purchasing an additional 426,809 shares in the last quarter.

CarMax Price Performance

Shares of KMX opened at $41.38 on Monday. The business’s 50-day moving average is $43.18 and its two-hundred day moving average is $46.75. The company has a market capitalization of $5.87 billion, a P/E ratio of 13.66, a P/E/G ratio of 0.98 and a beta of 1.35. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $89.47. The company has a debt-to-equity ratio of 2.74, a quick ratio of 0.51 and a current ratio of 1.99.

CarMax (NYSE:KMX) last announced its quarterly earnings results on Thursday, December 18th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.31 by $0.12. The company 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%.CarMax’s revenue for the quarter was down 6.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.81 earnings per share. Research analysts predict that CarMax will post 3.23 earnings per share for the current year.

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.