Wedbush Issues Pessimistic Estimate for CarMax Earnings

CarMax, Inc. (NYSE:KMX) – Stock analysts at Wedbush dropped their Q1 2026 earnings per share (EPS) estimates for CarMax in a research note issued on Thursday, January 16th. Wedbush analyst S. Basham now anticipates that the company will earn $1.27 per share for the quarter, down from their previous forecast of $1.48. Wedbush has a “Outperform” rating and a $95.00 price target on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.19 per share. Wedbush also issued estimates for CarMax’s Q4 2026 earnings at $0.75 EPS.

CarMax (NYSE:KMX) last announced its earnings results on Thursday, December 19th. The company reported $0.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.19. The business had revenue of $6.22 billion for the quarter, compared to analysts’ expectations of $6.05 billion. CarMax had a return on equity of 7.49% and a net margin of 1.77%. The business’s revenue for the quarter was up 1.2% on a year-over-year basis. During the same quarter last year, the firm earned $0.52 EPS.

Several other brokerages have also recently issued reports on KMX. JPMorgan Chase & Co. increased their target price on CarMax from $70.00 to $72.00 and gave the company an “underweight” rating in a research report on Friday, December 20th. Evercore ISI increased their price objective on CarMax from $83.00 to $85.00 and gave the company a “market perform” rating in a report on Thursday, December 19th. Truist Financial increased their price objective on CarMax from $72.00 to $88.00 and gave the company a “hold” rating in a report on Friday, December 20th. Mizuho increased their price objective on CarMax from $72.00 to $80.00 and gave the company a “neutral” rating in a report on Friday, December 20th. Finally, BNP Paribas upgraded CarMax to a “strong sell” rating in a report on Friday, September 27th. Three analysts have rated the stock with a sell rating, six have assigned a hold rating and six have given a buy rating to the stock. According to data from MarketBeat.com, CarMax presently has an average rating of “Hold” and a consensus price target of $85.17.

CarMax Stock Up 0.8 %

Shares of NYSE KMX opened at $79.55 on Monday. The company has a current ratio of 2.30, a quick ratio of 0.55 and a debt-to-equity ratio of 2.92. The stock has a market capitalization of $12.23 billion, a PE ratio of 26.96, a price-to-earnings-growth ratio of 1.50 and a beta of 1.71. The stock’s fifty day simple moving average is $82.17 and its two-hundred day simple moving average is $79.24. CarMax has a 12-month low of $65.83 and a 12-month high of $91.25.

Insider Buying and Selling

In other CarMax news, VP Jill A. Livesay sold 13,009 shares of CarMax stock in a transaction dated Wednesday, January 15th. The stock was sold at an average price of $81.00, for a total transaction of $1,053,729.00. Following the completion of the transaction, the vice president now owns 9,448 shares in the company, valued at approximately $765,288. This trade represents a 57.93 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Enrique N. Mayor-Mora sold 5,000 shares of CarMax stock in a transaction dated Wednesday, January 15th. The shares were sold at an average price of $81.43, for a total value of $407,150.00. Following the transaction, the chief financial officer now owns 20,260 shares of the company’s stock, valued at $1,649,771.80. The trade was a 19.79 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 259,598 shares of company stock worth $21,503,625 in the last 90 days. Insiders own 1.66% of the company’s stock.

Hedge Funds Weigh In On CarMax

A number of institutional investors have recently modified their holdings of KMX. Lakewood Asset Management LLC grew its position in shares of CarMax by 0.6% during the 4th quarter. Lakewood Asset Management LLC now owns 21,742 shares of the company’s stock valued at $1,778,000 after acquiring an additional 135 shares during the period. Arete Wealth Advisors LLC grew its position in shares of CarMax by 4.3% during the 3rd quarter. Arete Wealth Advisors LLC now owns 3,438 shares of the company’s stock valued at $266,000 after acquiring an additional 141 shares during the period. Northwestern Mutual Wealth Management Co. grew its position in shares of CarMax by 2.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 6,220 shares of the company’s stock valued at $456,000 after acquiring an additional 142 shares during the period. Chemistry Wealth Management LLC grew its position in shares of CarMax by 1.4% during the 4th quarter. Chemistry Wealth Management LLC now owns 12,218 shares of the company’s stock valued at $999,000 after acquiring an additional 164 shares during the period. Finally, Sompo Asset Management Co. Ltd. grew its position in shares of CarMax by 1.6% during the 3rd quarter. Sompo Asset Management Co. Ltd. now owns 10,602 shares of the company’s stock valued at $820,000 after acquiring an additional 170 shares during the period.

About CarMax

CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.