Zacks Research Issues Negative Outlook for CarMax Earnings

CarMax, Inc. (NYSE:KMX - Free Report) - Equities researchers at Zacks Research cut their Q1 2026 earnings per share (EPS) estimates for shares of CarMax in a research note issued to investors on Thursday, April 24th. Zacks Research analyst R. Department now forecasts that the company will post earnings of $1.21 per share for the quarter, down from their previous forecast of $1.25. The consensus estimate for CarMax's current full-year earnings is $3.23 per share. Zacks Research also issued estimates for CarMax's Q3 2026 earnings at $0.72 EPS, Q4 2026 earnings at $0.69 EPS, FY2026 earnings at $3.60 EPS, Q1 2027 earnings at $1.33 EPS, Q4 2027 earnings at $0.86 EPS and FY2028 earnings at $4.55 EPS.

A number of other equities analysts have also recently weighed in on the company. Wedbush reiterated an "outperform" rating and set a $90.00 price target on shares of CarMax in a report on Monday, April 21st. Robert W. Baird cut their price target on CarMax from $95.00 to $90.00 and set an "outperform" rating on the stock in a report on Friday, April 11th. JPMorgan Chase & Co. cut their price target on CarMax from $72.00 to $65.00 and set an "underweight" rating on the stock in a research note on Thursday, March 27th. Needham & Company LLC dropped their price target on shares of CarMax from $101.00 to $92.00 and set a "buy" rating on the stock in a research note on Friday, April 11th. Finally, StockNews.com cut shares of CarMax from a "hold" rating to a "sell" rating in a research report on Friday, April 11th. Four analysts have rated the stock with a sell rating, three have issued a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $87.73.

CarMax Trading Down 0.5 %

NYSE:KMX traded down $0.33 on Monday, hitting $64.78. The stock had a trading volume of 2,785,876 shares, compared to its average volume of 2,099,680. The company has a fifty day moving average price of $73.41 and a two-hundred day moving average price of $78.40. CarMax has a 1-year low of $61.67 and a 1-year 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. The stock has a market cap of $9.89 billion, a price-to-earnings ratio of 21.96, a PEG ratio of 1.67 and a beta of 1.58.

Insider Activity

In other CarMax news, Director Mitchell D. Steenrod acquired 1,300 shares of the business's stock in a transaction on Thursday, April 24th. The stock was purchased at an average price of $65.49 per share, for a total transaction of $85,137.00. Following the completion of the transaction, the director now owns 33,577 shares of the company's stock, valued at $2,198,957.73. The trade was a 4.03 % increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 1.66% of the company's stock.

Institutional Trading of CarMax

A number of institutional investors have recently added to or reduced their stakes in the stock. Cromwell Holdings LLC boosted 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 acquiring an additional 217 shares in the last quarter. Ameriflex Group Inc. acquired a new position in shares of CarMax during the 4th quarter worth $53,000. Allworth Financial LP grew its stake in 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 acquiring an additional 249 shares during the last quarter. ST Germain D J Co. Inc. acquired a new position in CarMax during the fourth quarter worth about $58,000. Finally, Colonial Trust Co SC increased its position in CarMax by 2,310.0% during the fourth quarter. Colonial Trust Co SC now owns 723 shares of the company's stock worth $59,000 after buying an additional 693 shares in 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.