Wedbush Has Positive Estimate for CarMax FY2025 Earnings

CarMax, Inc. (NYSE:KMX) – Equities research analysts at Wedbush raised their FY2025 earnings per share estimates for shares of CarMax in a research report issued on Wednesday, February 19th. Wedbush analyst S. Basham now anticipates that the company will earn $3.32 per share for the year, up from their previous estimate of $3.17. The consensus estimate for CarMax’s current full-year earnings is $3.22 per share. Wedbush also issued estimates for CarMax’s Q1 2026 earnings at $1.22 EPS, Q4 2026 earnings at $0.83 EPS, FY2026 earnings at $4.05 EPS and FY2027 earnings at $4.81 EPS.

Several other brokerages have also issued reports on KMX. Evercore ISI raised CarMax from an “in-line” rating to an “outperform” rating and raised their price objective for the stock from $90.00 to $110.00 in a report on Thursday, February 6th. Truist Financial lifted their target price on CarMax from $72.00 to $88.00 and gave the company a “hold” rating in a research note on Friday, December 20th. Stephens started coverage on CarMax in a research note on Thursday, December 5th. They set an “equal weight” rating and a $86.00 price target for the company. 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. Finally, JPMorgan Chase & Co. raised their target price on shares of CarMax from $70.00 to $72.00 and gave the stock an “underweight” rating in a research note on Friday, December 20th. Three research analysts have rated the stock with a sell rating, five have assigned a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $87.50.

CarMax Trading Down 2.0 %

NYSE KMX opened at $85.68 on Thursday. The firm’s fifty day moving average price is $83.46 and its 200 day moving average price is $80.02. CarMax has a 12 month low of $65.83 and a 12 month high of $91.25. The company has a debt-to-equity ratio of 2.92, a current ratio of 2.30 and a quick ratio of 0.55. The company has a market capitalization of $13.18 billion, a price-to-earnings ratio of 29.04, a price-to-earnings-growth ratio of 1.75 and a beta of 1.72.

CarMax (NYSE:KMX) last announced its quarterly earnings results 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. CarMax had a return on equity of 7.49% and a net margin of 1.77%. The firm had revenue of $6.22 billion during the quarter, compared to the consensus estimate of $6.05 billion. During the same period in the prior year, the company posted $0.52 earnings per share. The firm’s quarterly revenue was up 1.2% compared to the same quarter last year.

Insider Buying and Selling

In other CarMax news, CEO William D. Nash sold 120,513 shares of the business’s stock in a transaction dated Monday, December 23rd. The stock was 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 of the company’s stock, valued at approximately $15,123,292.92. The trade was a 39.88 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP James Lyski sold 57,986 shares of the company’s stock in a transaction dated Thursday, January 2nd. The stock was sold at an average price of $81.35, for a total value of $4,717,161.10. Following the sale, the executive vice president now owns 22,803 shares of the company’s stock, valued at $1,855,024.05. This represents a 71.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 264,467 shares of company stock worth $21,915,445 in the last quarter. Company insiders own 1.66% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Creative Planning lifted its holdings in shares of CarMax by 5.9% during the 3rd quarter. Creative Planning now owns 13,833 shares of the company’s stock valued at $1,070,000 after acquiring an additional 766 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd lifted its stake in shares of CarMax by 1.8% during the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 17,304 shares of the company’s stock worth $1,339,000 after purchasing an additional 298 shares in the last quarter. Blue Trust Inc. boosted its position in shares of CarMax by 108.2% in the third quarter. Blue Trust Inc. now owns 1,043 shares of the company’s stock worth $76,000 after buying an additional 542 shares during the period. Raymond James & Associates grew its stake in shares of CarMax by 4.1% in the third quarter. Raymond James & Associates now owns 248,148 shares of the company’s stock valued at $19,202,000 after buying an additional 9,778 shares in the last quarter. Finally, Foundations Investment Advisors LLC raised its holdings in shares of CarMax by 4.5% during the 3rd quarter. Foundations Investment Advisors LLC now owns 12,422 shares of the company’s stock valued at $961,000 after buying an additional 540 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.