Wedbush Equities Analysts Cut Earnings Estimates for CarMax

CarMax, Inc. (NYSE:KMX) – Research analysts at Wedbush decreased their Q1 2026 earnings per share estimates for CarMax in a research report 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 prior estimate of $1.48. Wedbush currently has a “Outperform” rating and a $95.00 target price on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.18 per share. Wedbush also issued estimates for CarMax’s Q4 2026 earnings at $0.75 EPS.

CarMax (NYSE:KMX) last released its quarterly earnings data on Thursday, December 19th. The company reported $0.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.62 by $0.19. The business had revenue of $6.22 billion during 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 company’s revenue for the quarter was up 1.2% on a year-over-year basis. During the same period in the previous year, the company earned $0.52 EPS.

KMX has been the subject of several other research reports. BNP Paribas upgraded shares of CarMax to a “strong sell” rating in a research note on Friday, September 27th. Mizuho lifted their price objective on shares of CarMax from $72.00 to $80.00 and gave the company a “neutral” rating in a research report on Friday, December 20th. Truist Financial boosted their target price on CarMax from $72.00 to $88.00 and gave the stock a “hold” rating in a research report on Friday, December 20th. Evercore ISI increased their price target on shares of CarMax from $83.00 to $85.00 and gave the company a “market perform” rating in a report on Thursday, December 19th. Finally, Oppenheimer reaffirmed an “outperform” rating and set a $105.00 price objective on shares of CarMax in a report on Friday, October 4th. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating and six have assigned a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $85.17.

CarMax Stock Performance

Shares of KMX opened at $78.96 on Monday. The stock has a 50 day moving average price of $82.07 and a 200 day moving average price of $79.14. CarMax has a 52-week low of $65.83 and a 52-week high of $91.25. The company has a quick ratio of 0.55, a current ratio of 2.30 and a debt-to-equity ratio of 2.92. The company has a market capitalization of $12.14 billion, a price-to-earnings ratio of 26.77, a price-to-earnings-growth ratio of 1.50 and a beta of 1.71.

Hedge Funds Weigh In On CarMax

A number of large investors have recently modified their holdings of the company. Lakewood Asset Management LLC grew its holdings 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 worth $1,778,000 after purchasing an additional 135 shares during the period. Arete Wealth Advisors LLC lifted its position in CarMax by 4.3% during the third quarter. Arete Wealth Advisors LLC now owns 3,438 shares of the company’s stock valued at $266,000 after buying an additional 141 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in CarMax by 2.3% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 6,220 shares of the company’s stock worth $456,000 after buying an additional 142 shares during the period. Chemistry Wealth Management LLC increased its position in shares of CarMax by 1.4% in the fourth quarter. Chemistry Wealth Management LLC now owns 12,218 shares of the company’s stock worth $999,000 after acquiring an additional 164 shares in the last quarter. Finally, Sompo Asset Management Co. Ltd. raised its stake in shares of CarMax by 1.6% in 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.

Insiders Place Their Bets

In related news, VP Jill A. Livesay sold 13,009 shares of the stock in a transaction on Wednesday, January 15th. The stock was sold at an average price of $81.00, for a total value of $1,053,729.00. Following the transaction, the vice president now directly owns 9,448 shares of the company’s stock, valued at approximately $765,288. This trade represents a 57.93 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Enrique N. Mayor-Mora sold 5,000 shares of CarMax stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $81.43, for a total value of $407,150.00. Following the completion of the transaction, the chief financial officer now owns 20,260 shares in the company, 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. In the last ninety days, insiders have sold 259,598 shares of company stock valued at $21,503,625. 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.