Wedbush Research Analysts Lift Earnings Estimates for CarMax

CarMax, Inc. (NYSE:KMX - Free Report) - Stock analysts at Wedbush lifted their Q4 2025 earnings per share estimates for shares of CarMax in a research report issued to clients and investors on Wednesday, February 19th. Wedbush analyst S. Basham now forecasts that the company will post earnings per share of $0.70 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.

KMX has been the subject of several other reports. JPMorgan Chase & Co. upped their price objective on CarMax from $70.00 to $72.00 and gave the stock an "underweight" rating in a research report on Friday, December 20th. Stephens initiated coverage on shares of CarMax in a research note on Thursday, December 5th. They issued an "equal weight" rating and a $86.00 price target on the stock. Royal Bank of Canada raised their price objective on shares of CarMax from $92.00 to $99.00 and gave the stock an "overweight" rating in a report on Thursday, December 19th. StockNews.com upgraded shares of CarMax from a "sell" rating to a "hold" rating in a report on Friday, December 20th. Finally, Truist Financial lifted their price target on shares of CarMax from $72.00 to $88.00 and gave the stock a "hold" 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 given a buy rating to the stock. Based on data from MarketBeat, CarMax has an average rating of "Hold" and a consensus price target of $87.50.

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CarMax Stock Down 0.0 %

Shares of KMX stock traded down $0.01 on Friday, reaching $82.88. 1,276,058 shares of the stock were exchanged, compared to its average volume of 1,563,710. The company has a market capitalization of $12.75 billion, a price-to-earnings ratio of 28.09, a PEG ratio of 1.67 and a beta of 1.72. The business's 50 day moving average price is $83.33 and its 200 day moving average price is $80.20. The company has a current ratio of 2.30, a quick ratio of 0.55 and a debt-to-equity ratio of 2.92. CarMax has a twelve month low of $65.83 and a twelve month high of $91.25.

CarMax (NYSE:KMX - Get Free Report) last posted its quarterly earnings results on Thursday, December 19th. The company reported $0.81 EPS for the quarter, topping 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 company had revenue of $6.22 billion during the quarter, compared to analysts' expectations of $6.05 billion. During the same quarter in the previous year, the business posted $0.52 EPS. The firm's revenue was up 1.2% on a year-over-year basis.

Insider Buying and Selling at CarMax

In other news, CEO William D. Nash sold 120,513 shares of the company's stock in a transaction that occurred on 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 in the company, valued at $15,123,292.92. This represents a 39.88 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Jill A. Livesay sold 13,009 shares of CarMax stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $81.00, for a total transaction of $1,053,729.00. Following the completion of the transaction, the vice president now owns 9,448 shares in the company, valued at approximately $765,288. This trade represents a 57.93 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 264,467 shares of company stock valued at $21,915,445 in the last ninety days. Insiders own 1.66% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Norges Bank purchased a new position in shares of CarMax during the 4th quarter worth approximately $423,187,000. Kovitz Investment Group Partners LLC lifted its holdings in CarMax by 348.0% in the fourth quarter. Kovitz Investment Group Partners LLC now owns 6,595,067 shares of the company's stock valued at $539,213,000 after acquiring an additional 5,122,850 shares during the period. FMR LLC lifted its stake in shares of CarMax by 2,883.1% in the third quarter. FMR LLC now owns 1,772,808 shares of the company's stock valued at $137,180,000 after purchasing an additional 1,713,379 shares during the period. Holocene Advisors LP increased its stake in CarMax by 740.2% in the 3rd quarter. Holocene Advisors LP now owns 946,931 shares of the company's stock valued at $73,274,000 after purchasing an additional 834,232 shares in the last quarter. Finally, AQR Capital Management LLC grew its stake in CarMax by 82.9% in the 4th quarter. AQR Capital Management LLC now owns 1,400,012 shares of the company's stock valued at $114,465,000 after acquiring an additional 634,390 shares during the last quarter.

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.