Zacks Research Weighs in on CarMax’s Q4 Earnings (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) – Zacks Research decreased their Q4 2026 earnings per share (EPS) estimates for CarMax in a report released on Wednesday, February 19th. Zacks Research analyst R. Department now forecasts that the company will earn $0.74 per share for the quarter, down from their previous forecast of $0.75. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share. Zacks Research also issued estimates for CarMax’s Q1 2027 earnings at $1.25 EPS.

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

KMX has been the subject of a number of other research reports. Royal Bank of Canada raised their price target on shares of CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a research report on Thursday, December 19th. Stephens began coverage on CarMax in a research note on Thursday, December 5th. They issued an “equal weight” rating and a $86.00 price target on the stock. JPMorgan Chase & Co. lifted their price objective on CarMax from $70.00 to $72.00 and gave the company an “underweight” rating in a research report on Friday, December 20th. Needham & Company LLC lifted their price target on shares of CarMax from $98.00 to $101.00 and gave the company a “buy” rating in a research report on Monday, February 3rd. Finally, Evercore ISI raised shares of CarMax from an “in-line” rating to an “outperform” rating and upped their price objective for the company from $90.00 to $110.00 in a research report on Thursday, February 6th. Three equities research analysts have rated the stock with a sell rating, five have issued a hold rating and seven have given a buy rating to the company’s stock. Based on data from MarketBeat, CarMax currently has a consensus rating of “Hold” and a consensus target price of $87.50.

CarMax Price Performance

CarMax stock opened at $85.68 on Friday. The firm has a 50 day moving average price of $83.46 and a 200 day moving average price of $80.02. The company has a market cap of $13.18 billion, a price-to-earnings ratio of 29.04, a PEG ratio of 1.71 and a beta of 1.72. CarMax has a 1 year low of $65.83 and a 1 year high of $91.25. The company has a debt-to-equity ratio of 2.92, a quick ratio of 0.55 and a current ratio of 2.30.

Institutional Investors Weigh In On CarMax

Several large investors have recently bought and sold shares of KMX. Lakewood Asset Management LLC increased its holdings in shares of CarMax by 0.6% in the fourth quarter. Lakewood Asset Management LLC now owns 21,742 shares of the company’s stock valued at $1,778,000 after purchasing an additional 135 shares during the last quarter. Arete Wealth Advisors LLC boosted its holdings 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 worth $266,000 after buying an additional 141 shares during the period. Wilmington Savings Fund Society FSB grew its stake in CarMax by 3.1% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 4,682 shares of the company’s stock valued at $383,000 after buying an additional 141 shares during the last quarter. Timber Creek Capital Management LLC grew its stake in CarMax by 0.3% in the 4th quarter. Timber Creek Capital Management LLC now owns 57,601 shares of the company’s stock valued at $4,709,000 after buying an additional 145 shares during the last quarter. Finally, Chemistry Wealth Management LLC raised its holdings in CarMax by 1.4% in 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.

Insider Buying and Selling

In other news, EVP James Lyski sold 57,986 shares of the business’s stock in a transaction dated Thursday, January 2nd. The stock was sold at an average price of $81.35, for a total transaction of $4,717,161.10. Following the completion of the transaction, the executive vice president now directly owns 22,803 shares in the company, valued at approximately $1,855,024.05. The trade was a 71.77 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO William D. Nash sold 120,513 shares of the stock in a transaction that occurred on Monday, December 23rd. The shares were sold at an average price of $83.24, for a total transaction of $10,031,502.12. Following the completion of the sale, the chief executive officer now owns 181,683 shares in the company, valued at $15,123,292.92. This represents a 39.88 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 264,467 shares of company stock valued at $21,915,445 over the last ninety days. Insiders own 1.66% of the company’s stock.

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.