Brokers Set Expectations for CarMax's Q2 Earnings (NYSE:KMX)

CarMax, Inc. (NYSE:KMX - Free Report) - Equities researchers at Wedbush boosted their Q2 2026 earnings per share (EPS) estimates for CarMax in a research report issued to clients and investors on Thursday, January 16th. Wedbush analyst S. Basham now forecasts that the company will post earnings per share of $1.07 for the quarter, up from their previous forecast of $1.03. Wedbush currently has a "Outperform" rating and a $95.00 target price 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 Q3 2026 earnings at $0.92 EPS and FY2027 earnings at $4.70 EPS.

CarMax (NYSE:KMX - Get Free Report) last announced its quarterly earnings data 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 business had revenue of $6.22 billion during the quarter, compared to analyst estimates of $6.05 billion. During the same period last year, the company earned $0.52 earnings per share. CarMax's quarterly revenue was up 1.2% compared to the same quarter last year.

KMX has been the subject of a number of other reports. Royal Bank of Canada lifted their target price on shares of CarMax from $92.00 to $99.00 and gave the company an "overweight" rating in a research note on Thursday, December 19th. BNP Paribas raised shares of CarMax to a "strong sell" rating in a research note on Friday, September 27th. Truist Financial upped 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 report on Friday, December 20th. Finally, Oppenheimer reiterated an "outperform" rating and set a $105.00 price target on shares of CarMax in a research note on Friday, October 4th. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating and six have assigned a buy rating to the stock. According to MarketBeat, CarMax has a consensus rating of "Hold" and an average price target of $85.17.

CarMax Stock Down 0.4 %

Shares of CarMax stock traded down $0.29 during trading on Friday, hitting $79.36. 857,521 shares of the stock traded hands, compared to its average volume of 1,657,310. The company has a fifty day moving average price of $82.01 and a two-hundred day moving average price of $79.00. CarMax has a twelve month low of $65.83 and a twelve month high of $91.25. The stock has a market cap of $12.21 billion, a P/E ratio of 26.92, a PEG ratio of 1.50 and a beta of 1.71. The company has a debt-to-equity ratio of 2.92, a quick ratio of 0.55 and a current ratio of 2.30.

Hedge Funds Weigh In On CarMax

Hedge funds and other institutional investors have recently modified their holdings of the stock. Quarry LP grew its position in CarMax by 78.6% in the second quarter. Quarry LP now owns 418 shares of the company's stock valued at $31,000 after acquiring an additional 184 shares during the period. Catalyst Capital Advisors LLC bought a new stake in shares of CarMax in the 3rd quarter worth about $32,000. True Wealth Design LLC grew its holdings 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 purchasing an additional 436 shares during the last quarter. ST Germain D J Co. Inc. bought a new position in CarMax during the 4th quarter valued at about $58,000. Finally, Larson Financial Group LLC lifted its holdings in CarMax by 91.9% during the 3rd quarter. Larson Financial Group LLC now owns 737 shares of the company's stock valued at $57,000 after purchasing an additional 353 shares during the last quarter.

Insider Transactions at CarMax

In other news, EVP Mohammad Shamim sold 10,000 shares of CarMax stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $83.77, for a total transaction of $837,700.00. Following the sale, the executive vice president now directly owns 11,738 shares in the company, valued at approximately $983,292.26. The trade was a 46.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Jon G. Daniels sold 30,245 shares of the stock in a transaction dated Tuesday, December 24th. The stock was sold at an average price of $84.34, for a total transaction of $2,550,863.30. Following the completion of the transaction, the senior vice president now directly owns 995 shares of the company's stock, valued at $83,918.30. This trade represents a 96.81 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 241,589 shares of company stock valued at $20,042,746. 1.66% of the stock is owned by corporate insiders.

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.