CarMax (NYSE:KMX) Given New $31.00 Price Target at Bank of America

CarMax (NYSE:KMX) had its price objective raised by Bank of America from $27.00 to $31.00 in a research report released on Friday morning,Benzinga reports. The firm currently has an underperform rating on the stock.

A number of other analysts have also recently weighed in on KMX. Barclays reduced their target price on shares of CarMax from $28.00 to $24.00 and set an “underweight” rating for the company in a report on Friday. Mizuho reduced their price objective on CarMax from $46.00 to $36.00 and set a “neutral” rating for the company in a research note on Friday. Robert W. Baird cut their target price on CarMax from $90.00 to $60.00 and set an “outperform” rating on the stock in a research report on Friday, September 26th. Benchmark reaffirmed a “hold” rating on shares of CarMax in a report on Tuesday. Finally, Wedbush dropped their price target on CarMax from $40.00 to $36.00 and set a “neutral” rating on the stock in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, eleven have assigned a Hold rating and seven have issued a Sell rating to the company. According to data from MarketBeat.com, CarMax has an average rating of “Reduce” and a consensus price target of $39.36.

CarMax Price Performance

NYSE:KMX opened at $38.44 on Friday. The business’s 50-day moving average price is $39.25 and its 200 day moving average price is $52.82. The firm has a market cap of $5.65 billion, a P/E ratio of 12.69, a PEG ratio of 0.97 and a beta of 1.29. CarMax has a 52-week low of $30.26 and a 52-week high of $89.47. The company has a quick ratio of 1.06, a current ratio of 1.99 and a debt-to-equity ratio of 2.74.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Thursday, December 18th. The company reported $0.43 earnings per share for the quarter, beating 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 company had revenue of $5.79 billion during the quarter, compared to the consensus estimate of $5.66 billion. During the same period in the prior year, the company earned $0.81 EPS. CarMax’s revenue was down 6.9% on a year-over-year basis. As a group, sell-side analysts predict that CarMax will post 3.23 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of KMX. Norges Bank purchased a new position in CarMax during the 2nd quarter valued at about $208,144,000. AQR Capital Management LLC boosted its holdings in shares of CarMax by 195.3% during the second quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company’s stock worth $298,107,000 after purchasing an additional 2,947,996 shares during the period. Arrowstreet Capital Limited Partnership grew its position in CarMax by 1,410.5% during the second quarter. Arrowstreet Capital Limited Partnership now owns 2,028,718 shares of the company’s stock valued at $136,350,000 after purchasing an additional 1,894,408 shares in the last quarter. The Manufacturers Life Insurance Company increased its stake in CarMax by 795.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,846,406 shares of the company’s stock valued at $124,097,000 after buying an additional 1,640,219 shares during the period. Finally, Vulcan Value Partners LLC lifted its position in CarMax by 135.2% in the 3rd quarter. Vulcan Value Partners LLC now owns 2,328,120 shares of the company’s stock worth $104,569,000 after buying an additional 1,338,134 shares in the last quarter.

Key CarMax News

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Q3 earnings beat estimates: CarMax reported third‑quarter EPS above expectations and revenue slightly topped consensus, showing the business can still generate cash and operating resilience amid weaker used‑car volumes. BusinessWire: Q3 Results
• Neutral Sentiment: Interim leadership named and CEO search underway — the board installed an interim CEO and executive chair, which provides continuity but adds near‑term strategic uncertainty until a permanent CEO is appointed. Press Release
• Neutral Sentiment: Company strategy: management signaled it will cut gross margins and raise marketing spend to regain sales momentum — this could revive volumes but sacrifices near‑term profitability and complicates short‑term forecasting. Benzinga: Lower prices strategy
• Negative Sentiment: Margin pressure and profit trade‑off spooked investors — the deliberate margin reset (lower prices + higher ad spend) is driving sell‑side concerns about near‑term earnings power and has pressured the share price. Barron’s: Why stock is falling
• Negative Sentiment: Analyst cuts and downgrades: multiple firms have trimmed price targets or reiterated underperform/underweight views (recent PT cuts at Wedbush, JPMorgan and bearish notes from Bank of America), adding downward pressure on sentiment.
• Negative Sentiment: Legal risk: several law firms have filed or announced securities‑fraud class actions and are soliciting lead‑plaintiff applications with a January 2, 2026 deadline — litigation risk and potential discovery/costs increase investor uncertainty. GlobeNewsWire: Hagens Berman notice
• Negative Sentiment: Options and sentiment signals: unusual surge in put activity indicates elevated short‑term bearish bets by options traders, consistent with the negative headlines and analyst moves.

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.