JPMorgan Chase & Co. Forecasts Strong Price Appreciation for CarMax (NYSE:KMX) Stock

CarMax (NYSE:KMX) had its target price increased by investment analysts at JPMorgan Chase & Co. from $28.00 to $35.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm presently has an “underweight” rating on the stock. JPMorgan Chase & Co.‘s price target points to a potential downside of 13.55% from the stock’s previous close.

KMX has been the topic of a number of other research reports. Mizuho cut their price objective on shares of CarMax from $46.00 to $36.00 and set a “neutral” rating on the stock in a report on Friday, December 19th. Bank of America initiated coverage on shares of CarMax in a report on Wednesday. They issued an “underperform” rating and a $40.00 price objective on the stock. Wall Street Zen upgraded shares of CarMax from a “sell” rating to a “hold” rating in a report on Saturday, April 4th. Weiss Ratings restated a “sell (d)” rating on shares of CarMax in a report on Wednesday, April 8th. Finally, Royal Bank Of Canada restated a “sector perform” rating and issued a $41.00 price objective on shares of CarMax in a report on Wednesday. One investment analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Reduce” and an average price target of $41.36.

CarMax Trading Down 2.8%

KMX stock traded down $1.17 during trading on Wednesday, reaching $40.49. The company had a trading volume of 2,924,660 shares, compared to its average volume of 3,532,841. CarMax has a 52 week low of $30.26 and a 52 week high of $71.99. The company has a market cap of $5.74 billion, a P/E ratio of 13.38, a PEG ratio of 1.29 and a beta of 1.30. The business has a 50 day moving average of $43.00 and a 200 day moving average of $41.98. 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 announced its quarterly earnings data on Tuesday, April 14th. The company reported $0.34 earnings per share for the quarter, topping analysts’ consensus estimates of $0.22 by $0.12. The business had revenue of $5.95 billion for the quarter, compared to analysts’ expectations of $5.65 billion. CarMax had a net margin of 1.77% and a return on equity of 7.72%. The business’s revenue was down 1.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.58 earnings per share. As a group, sell-side analysts forecast that CarMax will post 3.23 earnings per share for the current fiscal year.

Institutional Investors Weigh In On CarMax

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Silver Heights Capital Management Inc boosted its holdings in CarMax by 39.5% in the third quarter. Silver Heights Capital Management Inc now owns 926,167 shares of the company’s stock worth $41,557,000 after purchasing an additional 262,478 shares during the last quarter. Intech Investment Management LLC boosted its holdings in CarMax by 129.4% in the third quarter. Intech Investment Management LLC now owns 86,444 shares of the company’s stock worth $3,879,000 after purchasing an additional 48,757 shares during the last quarter. True North Advisors LLC boosted its holdings in CarMax by 66.6% in the third quarter. True North Advisors LLC now owns 123,742 shares of the company’s stock worth $5,552,000 after purchasing an additional 49,450 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in CarMax by 33.2% in the third quarter. Dimensional Fund Advisors LP now owns 3,685,201 shares of the company’s stock worth $165,358,000 after purchasing an additional 918,553 shares during the last quarter. Finally, Rings Capital Management LLC boosted its holdings in CarMax by 71.6% in the third quarter. Rings Capital Management LLC now owns 1,074,000 shares of the company’s stock worth $48,190,000 after purchasing an additional 448,000 shares during the last quarter.

Key Headlines Impacting CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Adjusted Q4 results topped estimates — CarMax reported adjusted EPS of $0.34 vs. Street $0.22 and revenue of $5.95B vs. $5.65B, showing demand and top-line resilience despite weak year‑over‑year comparisons. Article Title
• Positive Sentiment: Management is pursuing a turnaround — new CEO Keith Barr is prioritizing technology and process changes to streamline buying/selling and target SG&A reductions, which could help margins over time. Article Title
• Neutral Sentiment: Analysts mixed — some firms (Needham) maintained a Hold citing early signs of volume improvement but limited visibility on a durable earnings recovery; this keeps near‑term investor expectations varied. Article Title
• Negative Sentiment: GAAP loss and nonrecurring charges weighed on sentiment — the quarter included a goodwill impairment and other items that produced a GAAP loss, undermining the headline print despite the adjusted beat. Article Title
• Negative Sentiment: Margin compression from price cuts — management cut used‑car prices to stimulate demand, which reduced gross profit per retail unit and led to margin deterioration that investors punished. Article Title
• Negative Sentiment: Credit provisioning and operating pressures — higher loan‑loss reserves and weaker gross profit in retail/wholesale flagged a near‑term earnings headwind. Article Title
• Negative Sentiment: Analyst downgrades and price target cuts — Bank of America initiated coverage with an Underperform/Sell and $40 target (below recent levels), adding pressure to the stock amid uncertain near‑term profitability. Article Title
• Negative Sentiment: Market reaction: sharp intraday declines — coverage and headlines on the loss, price cuts and margin squeeze triggered large share‑price drops as investors weighed recovery timing. Article Title

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.