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

CarMax, Inc. (NYSE:KMX) has received an average recommendation of “Reduce” from the nineteen brokerages that are presently covering the firm, MarketBeat Ratings reports. Five analysts have rated the stock with a sell recommendation, twelve have given a hold recommendation, one has issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $40.0667.

A number of research firms have recently issued reports on KMX. Mizuho dropped their price objective on shares of CarMax from $46.00 to $36.00 and set a “neutral” rating on the stock in a research note on Friday, December 19th. William Blair lowered shares of CarMax from an “outperform” rating to a “market perform” rating in a report on Thursday, November 6th. Barclays boosted their price objective on shares of CarMax from $24.00 to $28.00 and gave the stock an “underweight” rating in a report on Wednesday, January 21st. Stephens decreased their price objective on shares of CarMax from $39.00 to $36.00 and set an “equal weight” rating for the company in a research report on Friday, December 19th. Finally, Wall Street Zen lowered CarMax from a “hold” rating to a “sell” rating in a research report on Saturday.

Hedge Funds Weigh In On CarMax

Several institutional investors and hedge funds have recently made changes to their positions in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of CarMax by 0.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,389 shares of the company’s stock worth $2,446,000 after buying an additional 173 shares during the last quarter. Jones Financial Companies Lllp grew its holdings in CarMax by 3.1% during the 1st quarter. Jones Financial Companies Lllp now owns 5,372 shares of the company’s stock worth $419,000 after acquiring an additional 161 shares in the last quarter. Empowered Funds LLC increased its position in shares of CarMax by 12.5% in the 1st 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 last quarter. Intech Investment Management LLC raised its stake in shares of CarMax by 61.7% in the 1st quarter. Intech Investment Management LLC now owns 19,143 shares of the company’s stock valued at $1,492,000 after purchasing an additional 7,307 shares in the last quarter. Finally, Acadian Asset Management LLC bought a new position in shares of CarMax during the first quarter worth about $727,000.

CarMax Trading Up 1.0%

NYSE:KMX opened at $41.38 on Monday. The business’s 50-day moving average is $43.18 and its two-hundred day moving average is $46.58. The firm has a market capitalization of $5.87 billion, a PE ratio of 13.66, a price-to-earnings-growth ratio of 0.99 and a beta of 1.35. CarMax has a 12 month low of $30.26 and a 12 month high of $89.47. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.99 and a quick ratio of 0.51.

CarMax (NYSE:KMX) last posted its earnings results on Thursday, December 18th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.31 by $0.12. The business had revenue of $5.79 billion during the quarter, compared to analyst estimates of $5.66 billion. CarMax had a return on equity of 7.72% and a net margin of 1.77%.The company’s revenue for the quarter was down 6.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.81 earnings per share. Research analysts predict that CarMax will post 3.23 earnings per share for the current fiscal year.

CarMax News Roundup

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: New CEO with digital and customer-focus credentials — Keith Barr, who led IHG Hotels & Resorts, will become CarMax’s CEO on March 16; investors hope his hospitality/digital background can accelerate omnichannel improvements and customer experience upgrades that could stabilize sales and margins. Keith Barr Takes CarMax Helm As Digital And Customer Focus Deepens
• Positive Sentiment: Market narrative shift toward a turnaround plan — major outlets report the hire as signaling a strategic pivot to digital and service-led differentiation, which can be seen as a credible first step to rebuild investor confidence. CarMax Taps Hotel Veteran to Lead Turnaround
• Neutral Sentiment: Formal appointment and board changes — CarMax issued an official press release confirming Barr’s appointment, the effective date (March 16), and board role shifts (interim CEO returning to director duties). This clarifies succession but is procedural. CarMax Names Keith Barr as Chief Executive Officer
• Neutral Sentiment: Media skepticism on fit — several outlets note Barr isn’t an auto-industry executive, framing the hire as unconventional; that raises questions about how transferable his hotel/digital playbook will be to used-car retail. CarMax Names a New CEO. He’s Not a Car Guy.
• Negative Sentiment: Analyst maintains bearish view — J.P. Morgan’s Rajat Gupta kept a Sell rating citing elevated execution risk and intensifying competition from online rivals like Carvana, arguing a new CEO alone may not be enough to reverse margin pressure or lower inventory risk quickly. CarMax: Elevated Execution Risk and Intensifying Carvana Competition Justify Sell Rating Despite New CEO
• Negative Sentiment: Recent sharp share decline and fundamental headwinds — commentary and reporting highlight a recent plunge in the stock tied to falling demand and worries about the company’s ability to execute a turnaround, underscoring that investor optimism may be tenuous until operational results improve. Why CarMax Stock Just Crashed

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.