CarMax Inc's stock rose by 5.83% today, reaching a 20-day high, as the broader market showed slight gains with the Nasdaq-100 up 0.14% and the S&P 500 up 0.02%.
This increase comes amid a shareholder investigation launched by Grabar Law Office, which is examining whether CarMax executives breached their fiduciary duties. Allegations include overstating growth prospects for fiscal 2026, which has raised significant concerns about corporate governance and investor confidence. The investigation could lead to legal liabilities if misconduct is confirmed, impacting the company's market reputation.
The implications of this investigation are profound, as it highlights vulnerabilities in CarMax's governance structure. Investors are likely to remain cautious as the situation develops, weighing the potential for corporate reforms against the backdrop of the company's recent financial performance.
Wall Street analysts forecast KMX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for KMX is 33.60 USD with a low forecast of 24.00 USD and a high forecast of 37.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
Wall Street analysts forecast KMX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for KMX is 33.60 USD with a low forecast of 24.00 USD and a high forecast of 37.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
10 Hold
3 Sell
Hold
Current: 46.960
Low
24.00
Averages
33.60
High
37.00
Current: 46.960
Low
24.00
Averages
33.60
High
37.00
Oddo BHF
Christian Arnold
Neutral -> Outperform
upgrade
$75
2026-01-21
Reason
Oddo BHF
Christian Arnold
Price Target
$75
AI Analysis
2026-01-21
upgrade
Neutral -> Outperform
Reason
Oddo BHF analyst Christian Arnold upgraded Komax to Outperform from Neutral with a CHF 75 price target. The firm cites the company's valuation discount for the upgrade.
Barclays
Underweight
maintain
$24 -> $28
2026-01-21
Reason
Barclays
Price Target
$24 -> $28
2026-01-21
maintain
Underweight
Reason
Barclays raised the firm's price target on CarMax to $28 from $24 and keeps an Underweight rating on the shares. The firm adjusted targets in the auto retail group as part of its Q4 outlook. It broadly lowered estimates across the sector on "soft" auto sales unit pressures. However, trade checks suggest the used vehicle market has good momentum, the analyst tells investors in a research note.
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JPMorgan
Underweight -> Underweight
downgrade
$30 -> $28
2025-12-19
Reason
JPMorgan
Price Target
$30 -> $28
2025-12-19
downgrade
Underweight -> Underweight
Reason
JPMorgan lowered the firm's price target on CarMax to $28 from $30 and keeps an Underweight rating on the shares following the Q3 report. The company's results and commentary suggest pressure on margins in near- and medium-term with visibility low on a volume recovery, the analyst tells investors in a research note. JPMorgan reduced estimates following the earnings report.
Wedbush
Neutral
downgrade
$40 -> $36
2025-12-19
Reason
Wedbush
Price Target
$40 -> $36
2025-12-19
downgrade
Neutral
Reason
Wedbush lowered the firm's price target on CarMax to $36 from $40 and keeps a Neutral rating on the shares. CarMax reported mostly in-line Q3 results, with revenue of $5.8B and retail units down 8% year over year, slightly ahead of expectations, while retail average selling prices and gross profit per unit exceeded projections, the analyst tells investors in a research note. Management is focused on a multi-quarter turnaround, emphasizing price competitiveness, customer experience, digital monetization, cost reduction, and profitable growth, though near-term margin pressure is expected from lower ASPs and increased marketing spend, Wedbush says.
About KMX
CarMax, Inc. is a retailer of used autos. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. The CarMax Sales Operations segment sells used vehicles, purchases used vehicles from customers and other sources, sells related products and services, and arranges financing options for customers. The CAF segment consists solely of its own finance operation that provides financing for customers buying retail vehicles from the Company. The CAF segment also services all auto loans, it originates and is responsible for providing billing statements, collecting payments, maintaining contact with delinquent customers, and arranging for the repossession of vehicles securing defaulted loans. It provides customers with a range of other related products and services, including extended protection plan (EPP) products and vehicle repair services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
