CarMax (NYSE:KMX) Stock Price Target Raised at Royal Bank Of Canada

CarMax (NYSE:KMX) had its target price upped by equities research analysts at Royal Bank Of Canada from $45.00 to $56.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage presently has a “sector perform” rating on the stock. Royal Bank Of Canada’s target price points to a potential downside of 5.55% from the stock’s previous close.

A number of other equities research analysts have also issued reports on KMX. Robert W. Baird boosted their target price on CarMax from $48.00 to $55.00 and gave the stock an “outperform” rating in a research report on Thursday, June 18th. Stephens lifted their target price on shares of CarMax from $66.00 to $74.00 and gave the stock an “overweight” rating in a research report on Friday, September 25th. Mizuho lifted their price objective on shares of CarMax from $38.00 to $43.00 and gave the stock a “neutral” rating in a research report on Thursday, June 18th. Bank of America boosted their target price on shares of CarMax from $45.00 to $50.00 and gave the company an “underperform” rating in a research note on Wednesday. Finally, Wall Street Zen raised CarMax from a “sell” rating to a “hold” rating in a research report on Saturday, June 13th. Two research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average target price of $56.14.

CarMax Price Performance

Shares of NYSE KMX opened at $59.29 on Wednesday. The firm has a 50-day moving average of $59.56 and a two-hundred day moving average of $50.20. The company has a market capitalization of $8.41 billion, a price-to-earnings ratio of 38.75, a PEG ratio of 1.80 and a beta of 1.17. The company has a current ratio of 2.70, a quick ratio of 0.82 and a debt-to-equity ratio of 2.87. CarMax has a twelve month low of $30.26 and a twelve month high of $65.28.

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

Institutional Investors Weigh In On CarMax

Institutional investors have recently made changes to their positions in the company. Envestnet Asset Management Inc. increased its holdings in CarMax by 1.6% in the second quarter. Envestnet Asset Management Inc. now owns 932,805 shares of the company’s stock worth $49,336,000 after buying an additional 14,976 shares during the last quarter. State Street Corp lifted its stake in CarMax by 5.6% in the second quarter. State Street Corp now owns 5,156,276 shares of the company’s stock valued at $272,715,000 after acquiring an additional 271,216 shares during the last quarter. Anchor Investment Management LLC acquired a new stake in CarMax in the second quarter valued at approximately $37,000. The Manufacturers Life Insurance Company grew its position in CarMax by 0.9% in the second quarter. The Manufacturers Life Insurance Company now owns 2,420,139 shares of the company’s stock worth $128,001,000 after acquiring an additional 21,882 shares in the last quarter. Finally, Capstone Financial Advisors Inc. increased its stake in shares of CarMax by 5.6% during the 2nd quarter. Capstone Financial Advisors Inc. now owns 9,500 shares of the company’s stock worth $502,000 after purchasing an additional 500 shares during the last quarter.

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.