Why Is CARMAX INC (KMX) Stock Down Today?

Why KMX stock is down today

KMX stock fell 5.06% to $56.24 in morning trading on Thursday, marking a significant decline amid a wave of analyst price target increases. The stock opened at $59.06 but struggled throughout the session, hitting a low of $56.18 before closing near that level. The move reflects investor caution despite recent analyst upgrades, as the stock trades near a 52-week low.

What Happened

The stock’s sharp drop came despite multiple analysts raising their price targets for CarMax in the past 36 hours. UBS, Morgan Stanley, RBC Capital, Truist, Baird, and Barclays all increased their price targets, with UBS setting a new target of $62 and Baird raising its target to $70. The Fly and Benzinga reported these changes, highlighting continued confidence in the company’s turnaround progress. However, the stock’s performance suggests that investors are not yet convinced by the optimism. The CEO, Keith Barr, discussed unit sales growth and SG&A savings in the Q2 2027 earnings call, but the market appears to be weighing the company’s fundamentals, which include a trailing twelve-month revenue decline of 1.7%, a net margin of 0.8%, and a P/E ratio of 38.5.

What The Data Shows

The stock’s intraday trajectory shows a steady decline after an early morning high of $59.86. Volume of 1.6 million shares is 60% above the 3-month average, indicating heightened investor activity. The stock has fallen 1.4% over the past eight sessions, from $57.37 to $56.57, and has printed 10 fresh 52-week lows on September 30. Recent congressional trades include a $1,001, $15,000 purchase by Rep. Gilbert Ray Cisneros, Jr. on August 19. Retail traders on Reddit and Twitter have expressed concerns about the stock’s performance, with some calling it a failed opening move.

What To Watch

The next key event for KMX will be its earnings report, which was highlighted in the Q2 2027 call. Investors will closely watch for further signs of progress in unit sales and cost savings. Analyst coverage remains strong, with 41 stories from 19 sources in the past 36 hours, and continued price target increases may influence the stock’s near-term direction.