CarMax (NYSE:KMX) Price Target Raised to $70.00

by · The Markets Daily

CarMax (NYSE:KMX – Free Report) had its target price boosted by JPMorgan Chase & Co. from $60.00 to $70.00 in a research note released on Friday morning,Benzinga reports. The brokerage currently has a neutral rating on the stock.

A number of other analysts have also recently commented on the stock. Truist Financial upped their target price on shares of CarMax from $47.00 to $50.00 and gave the company a “hold” rating in a report on Thursday, June 18th. Mizuho lifted their price target on shares of CarMax from $38.00 to $43.00 and gave the stock a “neutral” rating in a research note on Thursday, June 18th. Barclays raised shares of CarMax from an “underweight” rating to an “equal weight” rating and boosted their price objective for the company from $37.00 to $61.00 in a research report on Tuesday, July 21st. Benchmark reaffirmed a “hold” rating on shares of CarMax in a report on Thursday, June 18th. Finally, Bank of America lifted their target price on CarMax from $40.00 to $45.00 and gave the company an “underperform” rating in a research report on Wednesday, June 17th. Two equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and an average target price of $51.67.

Read Our Latest Report on KMX

CarMax Price Performance

Shares of NYSE:KMX opened at $57.20 on Friday. The company has a quick ratio of 0.82, a current ratio of 2.70 and a debt-to-equity ratio of 2.87. The stock has a market capitalization of $8.12 billion, a PE ratio of 37.39, a price-to-earnings-growth ratio of 2.64 and a beta of 1.17. The firm’s 50 day moving average price is $59.50 and its 200-day moving average price is $49.45. CarMax has a twelve month low of $30.26 and a twelve month high of $65.28.

Insiders Place Their Bets

In other news, Director Sona Chawla purchased 2,000 shares of the business’s stock in a transaction that occurred on Thursday, June 25th. The shares were bought at an average cost of $53.39 per share, for a total transaction of $106,780.00. Following the acquisition, the director owned 21,702 shares of the company’s stock, valued at approximately $1,158,669.78. This trade represents a 10.15% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 1.01% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Bessemer Group Inc. raised its position in CarMax by 28.1% during the 1st quarter. Bessemer Group Inc. now owns 156,121 shares of the company’s stock valued at $6,491,000 after purchasing an additional 34,211 shares in the last quarter. Bank of America Corp DE lifted its holdings in CarMax by 61.7% during the first quarter. Bank of America Corp DE now owns 1,687,359 shares of the company’s stock worth $70,160,000 after buying an additional 643,834 shares during the period. Convergence Investment Partners LLC purchased a new position in shares of CarMax in the 1st quarter valued at $1,688,000. Midway Capital Research & Management bought a new position in shares of CarMax in the 4th quarter worth $1,625,000. Finally, Louisiana State Employees Retirement System bought a new position in shares of CarMax in the 1st quarter worth $2,615,000.

Key CarMax News

Here are the key news stories impacting CarMax this week:

  • Positive Sentiment: JPMorgan Chase reportedly expects strong appreciation for CarMax (KMX) shares, providing a positive counterpoint to the broader analyst caution. The optimism may reflect potential recovery in used-vehicle demand and earnings growth. JPMorgan Chase & Co. Forecasts Strong Price Appreciation for CarMax Stock
  • Neutral Sentiment: A financial comparison of CarMax (KMX) and Warby Parker (WRBY) offers relative valuation and financial metrics but does not appear to represent a new operational development or change to CarMax’s outlook. CarMax vs. Warby Parker Financial Comparison
  • Neutral Sentiment: Analysts have issued forecasts for CarMax’s fiscal second-quarter earnings. The estimates will be an important near-term catalyst, particularly because investors are assessing whether the company can sustain its recent earnings momentum after its latest quarterly results beat expectations. Analysts Issue Forecasts for CarMax’s Q2 Earnings
  • Negative Sentiment: Zacks Research lowered its earnings forecasts across multiple future periods. Its fiscal 2028 EPS estimate fell to $2.71 from $3.11, while its fiscal 2029 estimate declined to $2.91 from $3.90. Quarterly estimates were also reduced, including Q1 2028 to $0.95 from $1.01, Q2 2028 to $0.83 from $0.97, Q3 2028 to $0.68 from $0.84, and Q4 2028 to $0.25 from $0.30. The firm maintained a Hold rating. These cuts suggest weaker expected profitability and are likely the main source of selling pressure.

CarMax Company Profile

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CarMax, Inc is a specialty retailer of used vehicles and one of the largest automotive retailers in the United States. The company sells a broad selection of used cars, trucks and sport utility vehicles through its retail locations and online platform. CarMax also purchases vehicles from consumers and other sources, providing customers with a streamlined alternative to traditional private-party sales.

In addition to retail sales, CarMax operates wholesale vehicle auctions for vehicles that do not meet its retail standards or business requirements.

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