Wedbush Comments on CarMax’s FY2025 Earnings (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) – Analysts at Wedbush upped their FY2025 earnings per share (EPS) estimates for CarMax in a research report issued on Wednesday, February 19th. Wedbush analyst S. Basham now forecasts that the company will earn $3.32 per share for the year, up from their previous estimate of $3.17. The consensus estimate for CarMax’s current full-year earnings is $3.22 per share. Wedbush also issued estimates for CarMax’s Q1 2026 earnings at $1.22 EPS, Q4 2026 earnings at $0.83 EPS, FY2026 earnings at $4.05 EPS and FY2027 earnings at $4.81 EPS.

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

Other analysts also recently issued research reports about the company. Mizuho raised their price target on CarMax from $72.00 to $80.00 and gave the stock a “neutral” rating in a report on Friday, December 20th. StockNews.com upgraded CarMax from a “sell” rating to a “hold” rating in a report on Friday, December 20th. Evercore ISI upgraded CarMax from an “in-line” rating to an “outperform” rating and lifted their target price for the stock from $90.00 to $110.00 in a report on Thursday, February 6th. Royal Bank of Canada lifted their target price on CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a report on Thursday, December 19th. Finally, JPMorgan Chase & Co. lifted their price target on CarMax from $70.00 to $72.00 and gave the company an “underweight” rating in a report on Friday, December 20th. Three investment analysts have rated the stock with a sell rating, five have issued a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $87.50.

CarMax Price Performance

Shares of KMX opened at $87.43 on Thursday. The firm has a market cap of $13.45 billion, a price-to-earnings ratio of 29.64, a PEG ratio of 1.75 and a beta of 1.72. CarMax has a 52 week low of $65.83 and a 52 week high of $91.25. 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 50 day moving average of $83.48 and a 200-day moving average of $79.98.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Catalyst Capital Advisors LLC acquired a new position in CarMax during the 3rd quarter valued at about $32,000. True Wealth Design LLC increased its stake in CarMax by 4,844.4% during the 3rd quarter. True Wealth Design LLC now owns 445 shares of the company’s stock worth $34,000 after purchasing an additional 436 shares in the last quarter. Cromwell Holdings LLC grew its stake in shares of CarMax by 104.8% during the 4th quarter. Cromwell Holdings LLC now owns 424 shares of the company’s stock worth $35,000 after acquiring an additional 217 shares in the last quarter. Allworth Financial LP grew its stake in shares of CarMax by 62.7% during the 4th quarter. Allworth Financial LP now owns 646 shares of the company’s stock worth $51,000 after acquiring an additional 249 shares in the last quarter. Finally, Larson Financial Group LLC grew its stake in shares of CarMax by 91.9% during the 3rd quarter. Larson Financial Group LLC now owns 737 shares of the company’s stock worth $57,000 after acquiring an additional 353 shares in the last quarter.

Insider Buying and Selling at CarMax

In related news, VP Jill A. Livesay sold 13,009 shares of the business’s 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 of the company’s stock, valued at approximately $765,288. The trade was a 57.93 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Jon G. Daniels sold 10,000 shares of the business’s stock in a transaction dated Thursday, December 26th. The shares were sold at an average price of $85.30, for a total value of $853,000.00. Following the transaction, the senior vice president now owns 995 shares in the company, valued at $84,873.50. This represents a 90.95 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 264,467 shares of company stock worth $21,915,445 over the last 90 days. 1.66% of the stock is currently owned by corporate insiders.

CarMax Company Profile

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.