CarMax, Inc. (NYSE:KMX) Given Consensus Recommendation of “Reduce” by Brokerages

CarMax, Inc. (NYSE:KMX) has been given an average rating of “Reduce” by the twenty ratings firms that are presently covering the stock, Marketbeat.com reports. Five equities research analysts have rated the stock with a sell rating, fourteen have issued a hold rating and one has issued a buy rating on the company. The average 12 month target price among brokerages that have covered the stock in the last year is $41.7333.

KMX has been the subject of several analyst reports. Royal Bank Of Canada restated a “sector perform” rating and issued a $41.00 price objective on shares of CarMax in a report on Wednesday, April 15th. Bank of America initiated coverage on CarMax in a report on Wednesday, April 15th. They issued an “underperform” rating and a $40.00 price objective for the company. Weiss Ratings restated a “sell (d)” rating on shares of CarMax in a report on Wednesday, April 8th. Argus upgraded CarMax to a “hold” rating in a report on Thursday, April 16th. Finally, JPMorgan Chase & Co. raised their price objective on CarMax from $35.00 to $37.00 and gave the company an “underweight” rating in a report on Thursday.

Hedge Funds Weigh In On CarMax

A number of hedge funds and other institutional investors have recently bought and sold shares of KMX. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in CarMax by 0.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,389 shares of the company’s stock worth $2,446,000 after purchasing an additional 173 shares during the period. Jones Financial Companies Lllp grew its holdings in CarMax by 3.1% during the first quarter. Jones Financial Companies Lllp now owns 5,372 shares of the company’s stock worth $419,000 after purchasing an additional 161 shares during the period. Empowered Funds LLC grew its holdings in CarMax by 12.5% during the first quarter. Empowered Funds LLC now owns 5,273 shares of the company’s stock worth $411,000 after purchasing an additional 585 shares during the period. Intech Investment Management LLC grew its holdings in CarMax by 61.7% during the first quarter. Intech Investment Management LLC now owns 19,143 shares of the company’s stock worth $1,492,000 after purchasing an additional 7,307 shares during the period. Finally, Acadian Asset Management LLC bought a new position in CarMax during the first quarter worth about $727,000.

Trending Headlines about CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Wall Street Zen upgraded CarMax to a Hold rating, which is a modest vote of confidence in the stock’s outlook. CarMax (NYSE:KMX) Upgraded by Wall Street Zen to “Hold” Rating
• Neutral Sentiment: Zacks Research published a broad earnings update with new forecasts for CarMax’s future quarters and fiscal years, signaling ongoing analyst attention but no major near-term catalyst. Stay Ahead of the Game With CarMax (KMX) Q1 Earnings: Wall Street’s Insights on Key Metrics
• Negative Sentiment: Zacks Research cut earnings estimates across multiple periods for CarMax, including FY2027 EPS to $2.24 from $2.41 and FY2028 EPS to $2.86 from $3.09, suggesting softer profit expectations ahead. CarMax, Inc. (NYSE:KMX) earnings estimate updates
• Negative Sentiment: Additional analyst revisions also lowered near-term quarterly EPS estimates for Q1 2027, Q2 2027, Q3 2027, Q4 2027, Q1 2028, Q2 2028, Q3 2028, Q4 2028, and FY2029, reinforcing the view that earnings momentum may be under pressure. CarMax, Inc. (NYSE:KMX) earnings estimate updates

CarMax Price Performance

Shares of NYSE KMX opened at $51.27 on Friday. The stock has a market capitalization of $7.27 billion, a price-to-earnings ratio of 32.04, a PEG ratio of 1.94 and a beta of 1.21. The business has a 50-day moving average of $41.83 and a 200-day moving average of $42.15. The company has a debt-to-equity ratio of 2.93, a current ratio of 2.20 and a quick ratio of 0.49. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $71.99.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Tuesday, April 14th. The company reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.12. The company had revenue of $5.95 billion during the quarter, compared to analysts’ expectations of $5.65 billion. CarMax had a return on equity of 7.00% and a net margin of 0.96%.CarMax’s revenue for the quarter was down 1.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.58 EPS. As a group, sell-side analysts predict that CarMax will post 2.28 earnings per share for the current fiscal year.

About CarMax

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.