CarMax Rises as Investors Extend a Favorable Post-Earnings Re-rating

CarMax (KMX) is up 3.6% today. Here is some analysis on what might have caused this price movement.

Analysis: No obvious company-specific catalyst surfaced on August 20, 2026, so the gain appears to reflect continued positive sentiment after CarMax’s strong June quarterly report and subsequent analyst upgrades. Investors have also been reacting to management’s cost-reduction progress and growth strategy, which helped reshape the stock’s narrative over the summer. This could also be because recent operational announcements in August reinforced the view that management is still pushing customer-experience improvements. ([investors.carmax.com](https://investors.carmax.com/news-and-events/news/news-details/2026/CarMax-Reports-First-Quarter-Fiscal-2027-Results/))

Details:

CarMax’s first-quarter fiscal 2027 results showed net revenue rising 6.2% to about $8.0 billion, while SG&A expense fell 3.7%, alongside a new four-pillar strategy from CEO Keith Barr. ([investors.carmax.com](https://investors.carmax.com/news-and-events/news/news-details/2026/CarMax-Reports-First-Quarter-Fiscal-2027-Results/))

That same quarter materially beat Wall Street expectations on earnings, with EPS of $1.31 versus estimates in the mid-$0.90s, helping drive a broader re-rating in the shares. ([investors.carmax.com](https://investors.carmax.com/news-and-events/news/news-details/2026/CarMax-Reports-First-Quarter-Fiscal-2027-Results/))

Analyst sentiment turned less bearish in July, with Barclays upgrading KMX to Equal-Weight and lifting its target to $61 on July 21, followed by J.P. Morgan upgrading the stock to Neutral with a $60 target on July 29. ([stockanalysis.com](https://stockanalysis.com/stocks/kmx/forecast/))

More recently, CarMax announced new customer-service technology with Sierra on August 6, an incremental sign that the company is still investing in operating execution. ([investors.carmax.com](https://investors.carmax.com/news-and-events/news/news-details/2026/CarMax-Teams-with-Sierra-to-Enhance-Inbound-Sales-Call-Experience/default.aspx))

Sources:

CarMax Investor Relations, SEC, Benzinga, StockAnalysis, Trefis

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$KMX Insider Trading Activity

$KMX insiders have traded $KMX stock on the open market 2 times in the past 6 months. Of those trades, 2 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $KMX stock by insiders over the last 6 months:

KEITH BARR (President and CEO) purchased 9,400 shares for an estimated $498,247
PETER J BENSEN purchased 2,500 shares for an estimated $130,500

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

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$KMX Hedge Fund Activity

We have seen 232 institutional investors add shares of $KMX stock to their portfolio, and 386 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

NORGES BANK removed 3,455,184 shares (-83.8%) from their portfolio in Q2 2026, for an estimated $182,744,681
AQR CAPITAL MANAGEMENT LLC removed 3,437,708 shares (-34.2%) from their portfolio in Q2 2026, for an estimated $181,820,376
STARBOARD VALUE LP removed 2,994,924 shares (-48.3%) from their portfolio in Q2 2026, for an estimated $158,401,530
HAWK RIDGE CAPITAL MANAGEMENT LP added 2,834,458 shares (+inf%) to their portfolio in Q2 2026, for an estimated $149,914,483
APOLLO MANAGEMENT HOLDINGS, L.P. removed 2,158,456 shares (-52.1%) from their portfolio in Q2 2026, for an estimated $114,160,737
CANADA PENSION PLAN INVESTMENT BOARD added 1,908,090 shares (+693.8%) to their portfolio in Q2 2026, for an estimated $100,918,880
AMERICAN CENTURY COMPANIES INC added 1,859,355 shares (+133.7%) to their portfolio in Q2 2026, for an estimated $98,341,285

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$KMX Analyst Ratings

Wall Street analysts have issued reports on $KMX in the last several months. We have seen 0 firms issue buy ratings on the stock, and 1 firms issue sell ratings.

Here are some recent analyst ratings:

B of A Securities issued a "Underperform" rating on 06/18/2026

To track analyst ratings and price targets for $KMX, check out Quiver Quantitative's $KMX forecast page.

$KMX Price Targets

Multiple analysts have issued price targets for $KMX recently. We have seen 11 analysts offer price targets for $KMX in the last 6 months, with a median target of $45.0.

Here are some recent targets:

Joseph Spak from UBS set a target price of $57.0 on 06/23/2026
Daniela Haigian from Morgan Stanley set a target price of $44.0 on 06/23/2026
John Babcock from Barclays set a target price of $37.0 on 06/22/2026
John Murphy from B of A Securities set a target price of $45.0 on 06/18/2026
Steven Shemesh from RBC Capital set a target price of $45.0 on 06/18/2026
Craig Kennison from Baird set a target price of $55.0 on 06/18/2026
David Bellinger from Mizuho set a target price of $43.0 on 06/18/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.