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

CarMax, Inc. (NYSE:KMX) – Research analysts at Wedbush upped their Q4 2025 earnings per share (EPS) estimates for shares of CarMax in a report released on Wednesday, February 19th. Wedbush analyst S. Basham now expects that the company will post earnings of $0.70 per share for the quarter, up from their previous estimate of $0.54. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share.

Other equities analysts have also recently issued research reports about the company. 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. Mizuho upped 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. JPMorgan Chase & Co. upped their price target on CarMax from $70.00 to $72.00 and gave the stock an “underweight” rating in a report on Friday, December 20th. Finally, Evercore ISI upgraded CarMax from an “in-line” rating to an “outperform” rating and upped their price target for the stock from $90.00 to $110.00 in a report on Thursday, February 6th. Three analysts have rated the stock with a sell rating, five have assigned a hold rating and seven have issued a buy rating to the company’s stock. According to MarketBeat, CarMax has an average rating of “Hold” and a consensus target price of $87.50.

CarMax Stock Performance

NYSE KMX opened at $82.62 on Friday. 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 business’s 50 day moving average is $83.39 and its two-hundred day moving average is $80.08. CarMax has a 12-month low of $65.83 and a 12-month high of $91.25. The stock has a market capitalization of $12.71 billion, a price-to-earnings ratio of 28.01, a PEG ratio of 1.71 and a beta of 1.72.

CarMax (NYSE:KMX) last released its earnings results 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. CarMax had a return on equity of 7.49% and a net margin of 1.77%. The company had revenue of $6.22 billion for the quarter, compared to analysts’ expectations of $6.05 billion. During the same quarter in the previous year, the firm posted $0.52 EPS. The firm’s quarterly revenue was up 1.2% on a year-over-year basis.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Catalyst Capital Advisors LLC purchased a new position in shares of CarMax during the 3rd quarter worth $32,000. Cromwell Holdings LLC raised its position in shares of CarMax by 104.8% in the 4th quarter. Cromwell Holdings LLC now owns 424 shares of the company’s stock worth $35,000 after buying an additional 217 shares during the period. True Wealth Design LLC raised its position in shares of CarMax by 4,844.4% in the 3rd quarter. True Wealth Design LLC now owns 445 shares of the company’s stock worth $34,000 after buying an additional 436 shares during the period. Allworth Financial LP raised its position in shares of CarMax by 62.7% in the 4th quarter. Allworth Financial LP now owns 646 shares of the company’s stock worth $51,000 after buying an additional 249 shares during the period. Finally, ST Germain D J Co. Inc. purchased a new position in shares of CarMax in the 4th quarter worth $58,000.

Insider Buying and Selling at CarMax

In other CarMax news, EVP Mohammad Shamim sold 10,000 shares of the stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $83.77, for a total transaction of $837,700.00. Following the transaction, the executive vice president now owns 11,738 shares of the company’s stock, valued at $983,292.26. This represents a 46.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, SVP Tyler Tuite sold 4,869 shares of the stock in a transaction on Tuesday, January 28th. The stock was sold at an average price of $84.58, for a total value of $411,820.02. Following the transaction, the senior vice president now directly owns 227 shares in the company, valued at approximately $19,199.66. This represents a 95.55 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 264,467 shares of company stock worth $21,915,445. 1.66% of the stock is owned by 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.