Wedbush Equities Analysts Decrease Earnings Estimates for CarMax, Inc. (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) – Analysts at Wedbush dropped their Q2 2025 EPS estimates for CarMax in a report issued on Monday, June 24th. Wedbush analyst S. Basham now forecasts that the company will post earnings per share of $0.97 for the quarter, down from their prior estimate of $1.06. Wedbush currently has a “Outperform” rating and a $90.00 target price on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.06 per share. Wedbush also issued estimates for CarMax’s Q4 2025 earnings at $0.70 EPS.

CarMax (NYSE:KMX) last posted its earnings results on Friday, June 21st. The company reported $0.97 EPS for the quarter, beating analysts’ consensus estimates of $0.94 by $0.03. The company had revenue of $7.11 billion during the quarter, compared to analysts’ expectations of $7.16 billion. CarMax had a net margin of 1.55% and a return on equity of 6.64%. CarMax’s revenue for the quarter was down 7.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.16 earnings per share.

Other analysts have also issued research reports about the stock. Needham & Company LLC cut their price objective on shares of CarMax from $91.00 to $87.00 and set a “buy” rating on the stock in a research note on Monday. Oppenheimer reiterated an “outperform” rating and issued a $105.00 price objective on shares of CarMax in a research note on Monday. Royal Bank of Canada increased their price objective on shares of CarMax from $73.00 to $75.00 and gave the stock an “outperform” rating in a research note on Monday. JPMorgan Chase & Co. cut their price objective on shares of CarMax from $60.00 to $55.00 and set an “underweight” rating on the stock in a research note on Monday, April 15th. Finally, Mizuho dropped their price target on shares of CarMax from $75.00 to $72.00 and set a “neutral” rating on the stock in a research report on Tuesday, June 18th. Three investment analysts have rated the stock with a sell rating, four have given a hold rating and six have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $75.50.

CarMax Stock Up 1.3 %

NYSE:KMX opened at $72.73 on Wednesday. The firm has a market capitalization of $11.45 billion, a P/E ratio of 28.41, a PEG ratio of 1.41 and a beta of 1.69. CarMax has a 1-year low of $59.66 and a 1-year high of $88.22. The company’s fifty day moving average price is $70.45 and its 200-day moving average price is $73.95. The company has a debt-to-equity ratio of 2.95, a current ratio of 2.50 and a quick ratio of 0.60.

Insiders Place Their Bets

In other news, EVP Diane L. Cafritz sold 15,356 shares of the company’s stock in a transaction on Tuesday, April 23rd. The shares were sold at an average price of $69.53, for a total transaction of $1,067,702.68. Following the transaction, the executive vice president now directly owns 6,977 shares of the company’s stock, valued at approximately $485,110.81. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 1.66% of the stock is owned by insiders.

Institutional Investors Weigh In On CarMax

Large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its stake in shares of CarMax by 1.2% during the 4th quarter. Vanguard Group Inc. now owns 18,076,909 shares of the company’s stock worth $1,387,222,000 after purchasing an additional 222,132 shares during the last quarter. Norges Bank purchased a new position in shares of CarMax during the 4th quarter worth about $288,278,000. Morningstar Investment Services LLC lifted its holdings in shares of CarMax by 95.4% during the 4th quarter. Morningstar Investment Services LLC now owns 2,717,326 shares of the company’s stock worth $211,516,000 after acquiring an additional 1,326,840 shares during the period. Cooke & Bieler LP lifted its holdings in shares of CarMax by 3.1% during the 4th quarter. Cooke & Bieler LP now owns 2,344,650 shares of the company’s stock worth $179,928,000 after acquiring an additional 69,409 shares during the period. Finally, First Pacific Advisors LP lifted its holdings in shares of CarMax by 0.3% during the 1st quarter. First Pacific Advisors LP now owns 2,339,026 shares of the company’s stock worth $203,753,000 after acquiring an additional 7,481 shares during the period.

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.