What is Wedbush's Estimate for CarMax Q1 Earnings?

CarMax, Inc. (NYSE:KMX - Free Report) - Research analysts at Wedbush cut their Q1 2026 earnings per share (EPS) estimates for CarMax in a research note issued on Thursday, January 16th. Wedbush analyst S. Basham now expects that the company will post earnings of $1.27 per share for the quarter, down from their previous forecast of $1.48. Wedbush has a "Outperform" rating and a $95.00 price objective 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.

Several other equities analysts have also recently issued reports on KMX. Mizuho boosted their price target on CarMax from $72.00 to $80.00 and gave the company a "neutral" rating in a research report on Friday, December 20th. JPMorgan Chase & Co. lifted their target price on CarMax from $70.00 to $72.00 and gave the company an "underweight" rating in a research note on Friday, December 20th. Stephens began 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. BNP Paribas upgraded shares of CarMax to a "strong sell" rating in a research report on Friday, September 27th. Finally, StockNews.com raised shares of CarMax from a "sell" rating to a "hold" rating in a research note on Friday, December 20th. 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 MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $85.17.

CarMax Stock Performance

NYSE KMX traded down $0.69 during trading on Monday, reaching $78.96. The company's stock had a trading volume of 1,482,993 shares, compared to its average volume of 1,894,977. The business's fifty day moving average price is $82.12 and its 200-day moving average price is $79.18. CarMax has a twelve month low of $65.83 and a twelve month high of $91.25. The company has a debt-to-equity ratio of 2.92, a quick ratio of 0.55 and a current ratio of 2.30. The firm has a market cap of $12.14 billion, a price-to-earnings ratio of 26.77, a P/E/G ratio of 1.50 and a beta of 1.71.

CarMax (NYSE:KMX - Get Free Report) last released its quarterly earnings results on Thursday, December 19th. The company reported $0.81 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 during the quarter, compared to the consensus estimate of $6.05 billion. During the same quarter in the prior year, the firm earned $0.52 EPS. CarMax's revenue for the quarter was up 1.2% on a year-over-year basis.

Insider Buying and Selling

In other news, SVP Jon G. Daniels sold 10,000 shares of the firm's stock in a transaction on Thursday, December 26th. The stock was sold at an average price of $85.30, for a total value of $853,000.00. Following the completion of the transaction, the senior vice president now owns 995 shares in the company, valued at $84,873.50. This trade represents a 90.95 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO William D. Nash sold 120,513 shares of CarMax stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $83.24, for a total value of $10,031,502.12. Following the transaction, the chief executive officer now directly owns 181,683 shares of the company's stock, valued at $15,123,292.92. This trade represents a 39.88 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 259,598 shares of company stock valued at $21,503,625. Corporate insiders own 1.66% of the company's stock.

Hedge Funds Weigh In On CarMax

Several hedge funds have recently added to or reduced their stakes in KMX. Lakewood Asset Management LLC grew its position in shares of CarMax by 0.6% in the fourth quarter. Lakewood Asset Management LLC now owns 21,742 shares of the company's stock valued at $1,778,000 after purchasing an additional 135 shares during the last quarter. Arete Wealth Advisors LLC grew its holdings in CarMax by 4.3% during the 3rd 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 during the last quarter. Northwestern Mutual Wealth Management Co. increased its position 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 in the last quarter. Chemistry Wealth Management LLC increased its position in CarMax by 1.4% during the fourth quarter. Chemistry Wealth Management LLC now owns 12,218 shares of the company's stock worth $999,000 after buying an additional 164 shares in the last quarter. Finally, Sompo Asset Management Co. Ltd. raised its holdings in shares of CarMax by 1.6% in the third quarter. Sompo Asset Management Co. Ltd. now owns 10,602 shares of the company's stock worth $820,000 after acquiring an additional 170 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.