Robert W. Baird Forecasts Strong Price Appreciation for CarMax (NYSE:KMX) Stock

CarMax (NYSE:KMX) had its price target increased by Robert W. Baird from $64.00 to $70.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage currently has an “outperform” rating on the stock. Robert W. Baird’s price target points to a potential upside of 18.06% from the stock’s current price.

KMX has been the topic of a number of other research reports. Truist Financial set a $60.00 target price on shares of CarMax in a research note on Wednesday. Zacks Research lowered shares of CarMax from a “strong-buy” rating to a “hold” rating in a report on Wednesday, September 16th. Royal Bank Of Canada raised their target price on shares of CarMax from $45.00 to $56.00 and gave the company a “sector perform” rating in a research note on Wednesday. JPMorgan Chase & Co. upped their price target on CarMax from $60.00 to $70.00 and gave the company a “neutral” rating in a research note on Friday, September 18th. Finally, BNP Paribas Exane reaffirmed an “underperform” rating and set a $48.00 price target (up from $33.00) on shares of CarMax in a research report on Wednesday. Two equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Reduce” and an average target price of $56.14.

CarMax Stock Performance

CarMax stock opened at $59.29 on Wednesday. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82. The company has a market cap of $8.41 billion, a P/E ratio of 38.75, a price-to-earnings-growth ratio of 1.80 and a beta of 1.17. The firm’s 50 day simple moving average is $59.56 and its 200-day simple moving average is $50.20. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $65.28.

CarMax (NYSE:KMX) last released its quarterly earnings results on Tuesday, September 29th. The company reported $1.16 earnings per share for the quarter, beating analysts’ consensus estimates of $0.73 by $0.43. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The business had revenue of $7.88 billion for the quarter, compared to the consensus estimate of $7.09 billion. During the same quarter last year, the firm earned $0.64 EPS. CarMax’s revenue for the quarter was up 19.5% on a year-over-year basis. As a group, equities research analysts predict that CarMax will post 2.73 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Basecamp Wealth Advisors LLC boosted its position in CarMax by 105.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company’s stock valued at $26,000 after acquiring an additional 327 shares during the last quarter. Huntington National Bank lifted its holdings in CarMax by 62.4% during the fourth quarter. Huntington National Bank now owns 690 shares of the company’s stock worth $27,000 after acquiring an additional 265 shares during the period. Global Retirement Partners LLC bought a new stake in shares of CarMax in the 2nd quarter worth approximately $29,000. Wellington Grp LLC raised its position in shares of CarMax by 6,500.0% in the first quarter. Wellington Grp LLC now owns 726 shares of the company’s stock valued at $30,000 after purchasing an additional 715 shares during the period. Finally, Commonwealth Retirement Investments LLC bought a new stake in CarMax during the 4th quarter valued at $33,000.

Key Headlines Impacting CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Strong earnings and revenue beat: CarMax reported adjusted earnings of $1.16 per share, versus the roughly $0.73 consensus estimate and $0.64 a year earlier. Revenue rose 19.5% to $7.88 billion, exceeding expectations by approximately $850 million. CarMax Reports Second Quarter Fiscal 2027 Results
• Positive Sentiment: Used-vehicle demand improved: Combined retail and wholesale unit sales increased 14.7%, while retail used-unit sales rose 13.8% and comparable-store used-unit sales climbed 13.0%. Management said pricing actions helped support sales, and even lower-income customers appeared relatively resilient despite affordability pressures. CarMax Says Even Its Lowest-Income Customers Are Holding Up
• Positive Sentiment: Capital returns may resume: CarMax indicated that share repurchases are expected to restart in the third quarter, providing an additional potential catalyst for the stock. CarMax Just Gave Investors a Better Reason to Believe in the Turnaround

About CarMax

CarMax, Inc is a retailer of used vehicles operating in the United States. The company sells a broad selection of used cars, trucks and SUVs through its dealership network and online platform, offering customers the ability to research, purchase and arrange delivery for vehicles through an omnichannel shopping experience.

In addition to retail vehicle sales, CarMax provides vehicle financing through CarMax Auto Finance and offers customers access to extended protection products and related services.