CarMax (NYSE:KMX) Raised to Hold at Zacks Research

CarMax (NYSE:KMX) was upgraded by equities research analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research report issued on Monday,Zacks.com reports. Zacks Research also issued estimates for CarMax’s Q1 2027 earnings at $1.32 EPS, Q2 2027 earnings at $0.89 EPS, Q1 2028 earnings at $1.33 EPS and Q2 2028 earnings at $0.91 EPS.

Other equities analysts have also issued reports about the company. Wedbush reduced their price objective on CarMax from $40.00 to $36.00 and set a “neutral” rating on the stock in a research report on Friday, December 19th. Royal Bank Of Canada upped their target price on CarMax from $34.00 to $37.00 and gave the stock a “sector perform” rating in a research note on Friday, December 19th. Wall Street Zen lowered shares of CarMax from a “hold” rating to a “sell” rating in a report on Friday, October 3rd. Evercore ISI reaffirmed a “reduce” rating and issued a $36.00 price objective on shares of CarMax in a research note on Friday, December 19th. Finally, BNP Paribas Exane decreased their target price on shares of CarMax from $52.00 to $35.00 and set an “underperform” rating on the stock in a research report on Friday, September 26th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, twelve have issued a Hold rating and six have assigned a Sell rating to the stock. According to data from MarketBeat.com, CarMax currently has an average rating of “Reduce” and an average target price of $39.36.

CarMax Stock Up 1.6%

KMX stock opened at $40.95 on Monday. The company’s 50 day moving average is $38.13 and its 200 day moving average is $50.37. The stock has a market cap of $5.81 billion, a price-to-earnings ratio of 13.51, a price-to-earnings-growth ratio of 0.97 and a beta of 1.29. The company has a current ratio of 1.99, a quick ratio of 0.51 and a debt-to-equity ratio of 2.74. CarMax has a 1-year low of $30.26 and a 1-year high of $89.47.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Thursday, December 18th. The company reported $0.43 EPS for the quarter, topping analysts’ consensus estimates of $0.32 by $0.11. CarMax had a net margin of 1.77% and a return on equity of 7.72%. The firm had revenue of $5.79 billion for the quarter, compared to analyst estimates of $5.66 billion. During the same quarter in the prior year, the firm earned $0.81 EPS. The business’s revenue for the quarter was down 6.9% compared to the same quarter last year. Sell-side analysts predict that CarMax will post 3.23 EPS for the current fiscal year.

Hedge Funds Weigh In On CarMax

Hedge funds and other institutional investors have recently modified their holdings of the company. Y Intercept Hong Kong Ltd bought a new position in CarMax during the second quarter valued at approximately $5,758,000. Hantz Financial Services Inc. raised its stake in CarMax by 45.3% during the 2nd quarter. Hantz Financial Services Inc. now owns 191,827 shares of the company’s stock valued at $12,893,000 after buying an additional 59,840 shares during the last quarter. Avior Wealth Management LLC lifted its holdings in shares of CarMax by 6,129.3% during the 2nd quarter. Avior Wealth Management LLC now owns 9,344 shares of the company’s stock valued at $628,000 after buying an additional 9,194 shares during the period. Fox Run Management L.L.C. bought a new position in shares of CarMax during the 2nd quarter valued at $1,887,000. Finally, Gagnon Securities LLC boosted its stake in shares of CarMax by 3.9% in the 2nd quarter. Gagnon Securities LLC now owns 163,417 shares of the company’s stock worth $10,983,000 after buying an additional 6,067 shares during the last quarter.

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.