JPMorgan Chase & Co. Cuts CarMax (NYSE:KMX) Price Target to $28.00

CarMax (NYSE:KMX) had its target price cut by JPMorgan Chase & Co. from $30.00 to $28.00 in a research report report published on Friday morning,Benzinga reports. They currently have an underweight rating on the stock.

A number of other research analysts have also issued reports on the stock. Morgan Stanley set a $35.00 price objective on shares of CarMax in a report on Monday, December 8th. Evercore ISI restated a “reduce” rating and issued a $36.00 price target on shares of CarMax in a research report on Friday. Truist Financial raised their price target on shares of CarMax from $35.00 to $37.00 and gave the company a “hold” rating in a research note on Thursday. Weiss Ratings reiterated a “sell (d)” rating on shares of CarMax in a report on Tuesday, October 14th. Finally, Stephens decreased their price objective on CarMax from $39.00 to $36.00 and set an “equal weight” rating for the company in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, eleven have given a Hold rating and seven have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Reduce” and a consensus price target of $39.36.

CarMax Trading Down 2.3%

NYSE KMX opened at $38.44 on Friday. 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 has a twelve month low of $30.26 and a twelve month high of $89.47. The company has a market cap of $5.65 billion, a price-to-earnings ratio of 12.69, a price-to-earnings-growth ratio of 0.95 and a beta of 1.29. The business’s fifty day moving average is $39.25 and its 200 day moving average is $52.64.

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. CYBER HORNET ETFs LLC bought a new stake in CarMax in the second quarter worth approximately $28,000. MUFG Securities EMEA plc acquired a new stake in shares of CarMax during the 2nd quarter worth approximately $30,000. Center for Financial Planning Inc. acquired a new position in shares of CarMax during the 3rd quarter valued at $31,000. Advisory Services Network LLC acquired a new position in shares of CarMax during the 3rd quarter valued at $32,000. Finally, Strengthening Families & Communities LLC boosted its stake in CarMax by 220.0% during the third quarter. Strengthening Families & Communities LLC now owns 880 shares of the company’s stock worth $39,000 after acquiring an additional 605 shares in the last quarter.

Trending Headlines about CarMax

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.

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.