What is Wedbush's Forecast for CarMax FY2025 Earnings?

CarMax, Inc. (NYSE:KMX - Free Report) - Equities researchers at Wedbush boosted their FY2025 EPS estimates for shares of CarMax in a note issued to investors on Wednesday, February 19th. Wedbush analyst S. Basham now expects that the company will post earnings of $3.32 per share for the year, up from their previous forecast of $3.17. The consensus estimate for CarMax's current full-year earnings is $3.23 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.

Other research analysts have also issued research reports about the company. Royal Bank of Canada boosted 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. Truist Financial increased their price objective on shares of CarMax from $72.00 to $88.00 and gave the stock a "hold" rating in a report on Friday, December 20th. StockNews.com upgraded CarMax from a "sell" rating to a "hold" rating in a research report on Friday, December 20th. Needham & Company LLC raised their target price on CarMax from $98.00 to $101.00 and gave the company a "buy" rating in a research report on Monday, February 3rd. Finally, JPMorgan Chase & Co. boosted their price target on CarMax from $70.00 to $72.00 and gave the stock an "underweight" rating in a research report on Friday, December 20th. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat.com, CarMax has an average rating of "Hold" and a consensus price target of $87.50.

CarMax Stock Performance

KMX stock traded down $2.98 during midday trading on Thursday, reaching $82.62. The company had a trading volume of 1,614,402 shares, compared to its average volume of 1,585,182. The firm has a market capitalization of $12.71 billion, a PE ratio of 28.01, a P/E/G ratio of 1.71 and a beta of 1.72. The stock has a 50 day moving average price of $83.39 and a 200 day moving average price of $80.08. CarMax has a fifty-two week low of $65.83 and a fifty-two 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.

CarMax (NYSE:KMX - Get Free Report) last posted its quarterly earnings results on Thursday, December 19th. The company reported $0.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.19. CarMax had a net margin of 1.77% and a return on equity of 7.49%. The firm had revenue of $6.22 billion for the quarter, compared to analysts' expectations 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% on a year-over-year basis.

Insider Activity at CarMax

In related news, EVP Mohammad Shamim sold 10,000 shares of the firm's stock in a transaction that occurred on Monday, December 23rd. The shares were sold at an average price of $83.77, for a total transaction of $837,700.00. Following the completion of the sale, the executive vice president now directly owns 11,738 shares in the company, valued at approximately $983,292.26. This trade represents a 46.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed 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 transaction of $407,150.00. Following the sale, the chief financial officer now directly owns 20,260 shares of the company's stock, valued at $1,649,771.80. This trade represents a 19.79 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 264,467 shares of company stock worth $21,915,445. 1.66% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On CarMax

Several institutional investors have recently made changes to their positions in KMX. Catalyst Capital Advisors LLC acquired a new position in CarMax in the third quarter worth approximately $32,000. True Wealth Design LLC grew its position in CarMax by 4,844.4% in the third quarter. True Wealth Design LLC now owns 445 shares of the company's stock worth $34,000 after acquiring an additional 436 shares in the last quarter. Cromwell Holdings LLC increased its stake in shares of CarMax by 104.8% during the 4th quarter. Cromwell Holdings LLC now owns 424 shares of the company's stock worth $35,000 after purchasing an additional 217 shares during the last quarter. Allworth Financial LP lifted its stake in shares of CarMax by 62.7% in the 4th quarter. Allworth Financial LP now owns 646 shares of the company's stock valued at $51,000 after purchasing an additional 249 shares during the last quarter. Finally, Larson Financial Group LLC lifted its position in shares of CarMax by 91.9% in the third quarter. Larson Financial Group LLC now owns 737 shares of the company's stock worth $57,000 after buying an additional 353 shares during the last quarter.

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.