Baird Reiterates Buy Rating for CarMax, Inc.

Baird analyst Craig Kennison reiterated a Buy rating for CarMax, Inc. (NYSE: KMX) on June 18, 2026, with a price target of $55. This comes as shares of the auto retailer trade around $47.58.

Other Institutional Activity in CarMax

BlackRock, Inc. reduced its holdings in CarMax by 592,747 shares, ending with 17,257,461 shares valued at about $717.6 million. AQR Capital Management LLC, on the other hand, increased its position by 2,130,157 shares, bringing its total to 10,060,502 shares worth approximately $412.6 million. Vanguard Portfolio Management LLC and Vanguard Capital Management LLC both established new positions, each holding 7,276,272 shares and 6,386,764 shares, valued at $302.5 million and $265.6 million, respectively. Starboard Value LP also entered a new position with 6,201,362 shares worth around $257.9 million. SRS Investment Management, LLC slightly increased its stake by 13,871 shares to 5,651,674 shares, valued at $235 million.

CarMax Stock Snapshot

Shares of CarMax, Inc. (NYSE: KMX) are currently trading near $47.58. The company has a market capitalization of approximately $6.73 billion and a P/E ratio of 28.23. Its forward P/E stands at 17.02, and the stock has a beta of 1.202. Over the past 52 weeks, CarMax shares have ranged from a low of $30.26 to a high of $71.99. The stock's 50-day moving average is $42.20, while its 200-day moving average sits at $43.52. The company has a current ratio of 2.199 and a quick ratio of 0.136, with a debt-to-equity ratio of 318.175.

Recent Earnings

For the recent period, CarMax reported revenue of $27.76 billion, reflecting a slight decrease of 1.2% compared to the previous year. The company's net margin was 0.89%, and it achieved a return on equity of 4.08%. CarMax's earnings per share (EPS) stood at $1.68. The next earnings release is scheduled for June 17, 2026.

Insider Buying and Selling at CarMax, Inc.

On May 1, 2026, several insiders at CarMax, including EVP and CITO Shamim Mohammad, EVP CAF Daniel Jon, and EVP & CFO Enrique Mayor-Mora, sold shares at an average price of $38.53. Meanwhile, VP, Controller & PAO Jill Livesay bought 13,696 shares, though the purchase price wasn't disclosed.

Analysts Set New Price Targets

On June 18, 2026, Baird maintained its Buy rating on CarMax with a $55 price target. Mizuho also maintained a Hold rating with a $43 target, while B of A Securities kept a Sell rating with a $45 target. Truist Securities reiterated a Hold rating on June 16 with a $47 target. Barclays and JP Morgan have been more bearish, maintaining Sell ratings with targets of $31 and $37, respectively. The consensus recommendation is to hold, with a mean target price of $43.46 from 13 analyst opinions.

About CarMax, Inc.

CarMax, Inc., based in Richmond, Virginia, is a major retailer of used vehicles in the United States. The company operates through two main segments: CarMax Sales Operations, which offers a variety of used vehicles and related services, and CarMax Auto Finance, providing financing solutions for customers. Founded in 1993, CarMax employs around 27,796 people and is led by CEO Mr. Keith Barr.

Bottom Line

Baird's reiterated Buy rating and $55 target for CarMax highlight ongoing interest in the company's stock, despite its current trading price of around $47.58. Investors keep a close watch on these ratings to gauge market sentiment. As always, remember that analyst ratings and 13F filings are backward-looking and may not reflect current conditions.