Zacks Research upgraded shares of CarMax (NYSE:KMX – Free Report) from a hold rating to a strong-buy rating in a research note released on Tuesday morning,Zacks.com reports. Zacks Research also issued estimates for CarMax’s Q2 2028 earnings at $0.97 EPS, Q3 2028 earnings at $0.84 EPS, FY2028 earnings at $3.11 EPS and Q1 2029 earnings at $1.13 EPS.
A number of other analysts have also recently commented on KMX. Barclays upgraded CarMax from an “underweight” rating to an “equal weight” rating and lifted their price objective for the stock from $37.00 to $61.00 in a research report on Tuesday, July 21st. Bank of America raised their price target on shares of CarMax from $40.00 to $45.00 and gave the stock an “underperform” rating in a research note on Wednesday, June 17th. Weiss Ratings upgraded shares of CarMax from a “sell (d)” rating to a “sell (d+)” rating in a report on Monday, July 20th. Benchmark reissued a “hold” rating on shares of CarMax in a research report on Thursday, June 18th. Finally, Argus raised shares of CarMax to a “hold” rating in a research note on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, fourteen have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $51.00.
Get Our Latest Analysis on KMX
CarMax Trading Up 0.9%
CarMax (NYSE:KMX – Get Free Report) last released its quarterly earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.35. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The company had revenue of $8.01 billion during the quarter, compared to the consensus estimate of $7.42 billion. During the same quarter last year, the business posted $1.38 earnings per share. CarMax’s revenue was up 6.2% compared to the same quarter last year. Sell-side analysts anticipate that CarMax will post 2.73 EPS for the current fiscal year.
Insider Buying and Selling
In related news, Director Peter J. Bensen bought 2,500 shares of the stock in a transaction that occurred on Monday, June 22nd. The stock was purchased at an average cost of $52.20 per share, for a total transaction of $130,500.00. Following the completion of the acquisition, the director owned 24,796 shares in the company, valued at $1,294,351.20. This trade represents a 11.21% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Keith Barr purchased 9,400 shares of the company’s stock in a transaction that occurred on Monday, June 22nd. The shares were bought at an average cost of $53.01 per share, with a total value of $498,294.00. Following the transaction, the chief executive officer directly owned 33,375 shares of the company’s stock, valued at $1,769,208.75. The trade was a 39.21% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders have purchased 13,900 shares of company stock valued at $735,574. Insiders own 1.01% of the company’s stock.
Institutional Inflows and Outflows
Several large investors have recently made changes to their positions in KMX. SRS Investment Management LLC grew its stake in CarMax by 1,717.5% in the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock worth $217,845,000 after purchasing an additional 5,327,603 shares in the last quarter. AQR Capital Management LLC raised its stake in CarMax by 151.8% during the fourth quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock valued at $306,429,000 after buying an additional 4,780,903 shares in the last quarter. Norges Bank acquired a new position in shares of CarMax in the 4th quarter worth approximately $159,232,000. Arrowstreet Capital Limited Partnership increased its holdings in shares of CarMax by 73.7% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock valued at $158,074,000 after acquiring an additional 1,494,205 shares during the last quarter. Finally, Pacer Advisors Inc. acquired a new stake in shares of CarMax during the 1st quarter valued at approximately $48,634,000.
More CarMax News
Here are the key news stories impacting CarMax this week:
- Positive Sentiment: Zacks upgraded CarMax from “Hold” to “Strong Buy,” adding to the near-term bullish sentiment around the used-car retailer. Zacks.com
- Positive Sentiment: Zacks raised multiple earnings forecasts, including Q1 2029 EPS to $1.13 from $0.98, Q2 2028 EPS to $0.97 from $0.95, Q3 2028 EPS to $0.84 from $0.82, and fiscal 2028 EPS to $3.11 from $2.96. The revisions suggest improving expectations for CarMax’s longer-term profitability.
- Positive Sentiment: CarMax was added to Zacks’ Rank #1 Strong Buy list, reinforcing the view that its valuation and earnings outlook compare favorably with other stocks covered by the research firm. Zacks Strong Buy Stocks
- Neutral Sentiment: CarMax was named to PEOPLE’s 2026 Companies That Care list for the seventh time, ranking No. 70. The recognition supports the company’s employee and community reputation but is unlikely to materially affect revenue or earnings. CarMax Companies That Care
- Negative Sentiment: A shareholder-rights law firm announced an investigation into potential fiduciary-duty breaches by CarMax directors and officers. The announcement could increase legal uncertainty and weigh on investor confidence, although no wrongdoing has been established. CarMax Shareholder Investigation
- Negative Sentiment: Despite the Zacks upgrade, broader analyst sentiment remains cautious: recent price targets have generally been below the current trading level, and Bank of America previously rated the stock “Underperform.” This creates downside risk if earnings momentum fails to meet the raised forecasts.
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.
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