Zacks Research Issues Negative Estimate for CarMax Earnings

CarMax, Inc. (NYSE:KMX) – Equities research analysts at Zacks Research decreased their Q4 2026 earnings estimates for CarMax in a research note issued on Wednesday, January 15th. Zacks Research analyst R. Department now forecasts that the company will post earnings per share of $0.75 for the quarter, down from their previous estimate of $0.91. The consensus estimate for CarMax’s current full-year earnings is $3.18 per share.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Thursday, December 19th. The company reported $0.81 earnings per share (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 return on equity of 7.49% and a net margin of 1.77%. The company’s revenue for the quarter was up 1.2% compared to the same quarter last year. During the same period last year, the firm earned $0.52 earnings per share.

Several other equities research analysts have also recently weighed in on KMX. Needham & Company LLC increased their price objective on CarMax from $90.00 to $98.00 and gave the stock a “buy” rating in a report on Friday, December 20th. JPMorgan Chase & Co. upped their price objective on shares of CarMax from $70.00 to $72.00 and gave the stock an “underweight” rating in a report on Friday, December 20th. Stephens began coverage on shares of CarMax in a research note on Thursday, December 5th. They set an “equal weight” rating and a $86.00 target price on the stock. Royal Bank of Canada lifted their price objective on CarMax from $92.00 to $99.00 and gave the company an “overweight” rating in a research report on Thursday, December 19th. Finally, Oppenheimer reissued an “outperform” rating and issued a $105.00 target price on shares of CarMax in a research report on Friday, October 4th. Three analysts have rated the stock with a sell rating, six have assigned a hold rating and six have issued a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $85.17.

CarMax Stock Performance

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

Insider Buying and Selling

In other news, CEO William D. Nash sold 120,513 shares of CarMax 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 sale, the chief executive officer now owns 181,683 shares in the company, valued at $15,123,292.92. This trade represents a 39.88 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP Jill A. Livesay sold 13,009 shares of the company’s stock in a transaction on 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 transaction, the vice president now owns 9,448 shares of the company’s stock, valued at approximately $765,288. This represents a 57.93 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 259,598 shares of company stock valued at $21,503,625. 1.66% of the stock is owned by insiders.

Institutional Investors Weigh In On CarMax

Large investors have recently made changes to their positions in the company. State Street Corp raised its holdings in shares of CarMax by 0.6% during the 3rd quarter. State Street Corp now owns 6,193,174 shares of the company’s stock worth $479,228,000 after acquiring an additional 36,959 shares in the last quarter. Janus Henderson Group PLC grew its stake in shares of CarMax by 0.6% in the 3rd quarter. Janus Henderson Group PLC now owns 4,642,235 shares of the company’s stock worth $359,216,000 after buying an additional 28,466 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of CarMax by 0.4% in the 3rd quarter. Geode Capital Management LLC now owns 3,663,209 shares of the company’s stock worth $282,479,000 after buying an additional 14,903 shares during the last quarter. Dimensional Fund Advisors LP raised its position in shares of CarMax by 2.6% during the 2nd quarter. Dimensional Fund Advisors LP now owns 2,007,426 shares of the company’s stock valued at $147,230,000 after buying an additional 51,397 shares in the last quarter. Finally, Vulcan Value Partners LLC lifted its stake in shares of CarMax by 299.7% in the 2nd quarter. Vulcan Value Partners LLC now owns 1,827,139 shares of the company’s stock valued at $133,773,000 after purchasing an additional 1,369,986 shares during the last quarter.

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.