JP Morgan Reiterates Sell Rating on CarMax, Inc.

JP Morgan keeps its sell rating on CarMax, Inc. with a $38 price target.

Written by EarningsIQ · Published Jun 18, 2026, 3:01 PM EDT · Updated Jun 18, 2026, 4:01 PM EDT

Key Points

JP Morgan reiterated its sell rating on CarMax, Inc. (KMX) with a price target of $38.
CarMax shares are trading at $52.31 with a market cap of $6.73 billion and a P/E ratio of 28.23.
Insiders at CarMax have been trading shares recently, with EVP and CITO Shamim Mohammad selling 1,015 shares.

On June 18, 2026, JP Morgan reiterated its sell rating on CarMax, Inc. (NYSE: KMX), setting a price target of $38. This move comes as CarMax shares are trading at $52.31, reflecting ongoing market assessments of the company.

CarMax Stock Snapshot

Shares of NYSE:KMX are currently trading near $52.31. CarMax has a market cap of approximately $6.73 billion and a P/E ratio of 28.23, with a forward P/E of 17.02. The stock has a 52-week low of $30.26 and a high of $71.99. CarMax's 50-day moving average is $42.20, while the 200-day moving average stands at $43.52. The company's current ratio is 2.20, with a quick ratio of 0.14 and a debt-to-equity ratio of 318.18.

Recent Earnings

CarMax reported revenue of about $27.76 billion, with a slight revenue decline of 1.2%. The company's earnings per share (EPS) stands at $1.68. Its net margin is 0.89%, and return on equity (ROE) is 4.08%. CarMax is expected to announce its next earnings on June 17, 2026.

Insider Buying and Selling at CarMax, Inc.

There has been notable insider activity at CarMax. On May 1, 2026, EVP and CITO Shamim Mohammad sold 1,015 shares at an average price of $38.53. Similarly, other executives, including EVP & CFO Enrique Mayor-Mora, sold shares at the same price. However, VP Jill Livesay purchased 13,696 shares, indicating diverse insider sentiment.

Analysts Set New Price Targets

Alongside JP Morgan's reiterated sell rating and $38 price target, several other firms have maintained their views. On June 18, 2026, Truist Securities and Evercore ISI Group both maintained a hold rating, with price targets of $50 and $58, respectively. RBC Capital also kept a hold rating with a $45 target, while Baird maintained a buy rating with a $55 target. Mizuho and B of A Securities also provided hold and sell ratings, respectively, with targets of $43 and $45.

About CarMax, Inc.

CarMax, Inc., based in Richmond, Virginia, is a major retailer of used vehicles in the United States. It operates through two segments: CarMax Sales Operations, which offers a wide range of used vehicles and related services, and CarMax Auto Finance, providing financing options for customers. Founded in 1993, the company employs nearly 27,800 people under the leadership of CEO Keith Barr.

Bottom Line

JP Morgan's reiterated sell rating on CarMax highlights ongoing concerns about the company's market position. With shares trading above the analyst's target, investors are closely watching for upcoming earnings and market developments. As always, it's important to remember that analyst ratings and 13F filings reflect past positions and may not represent current or future conditions.