Zacks Research Issues Positive Forecast for CarMax Earnings

CarMax, Inc. (NYSE:KMX - Free Report) - Research analysts at Zacks Research raised their Q1 2026 earnings estimates for shares of CarMax in a research note issued to investors on Wednesday, January 15th. Zacks Research analyst R. Department now forecasts that the company will earn $1.28 per share for the quarter, up from their previous estimate of $1.17. The consensus estimate for CarMax's current full-year earnings is $3.18 per share. Zacks Research also issued estimates for CarMax's Q2 2026 earnings at $1.00 EPS, Q3 2026 earnings at $0.82 EPS, FY2026 earnings at $3.85 EPS, Q1 2027 earnings at $1.24 EPS, Q2 2027 earnings at $1.01 EPS and FY2027 earnings at $4.40 EPS.

Several other research analysts have also recently weighed in on KMX. Wedbush reiterated an "outperform" rating and set a $95.00 price target on shares of CarMax in a research report on Wednesday, October 16th. Royal Bank of Canada increased their price target on shares of CarMax from $92.00 to $99.00 and gave the stock an "overweight" rating in a report on Thursday, December 19th. Evercore ISI lifted their price objective on shares of CarMax from $83.00 to $85.00 and gave the company a "market perform" rating in a report on Thursday, December 19th. BNP Paribas raised shares of CarMax to a "strong sell" rating in a research note on Friday, September 27th. Finally, Stephens began coverage on CarMax in a research note on Thursday, December 5th. They issued an "equal weight" rating and a $86.00 price target for the company. Three research analysts have rated the stock with a sell rating, six have given a hold rating and six have issued a buy rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $85.17.

CarMax Stock Performance

Shares of KMX stock traded down $0.29 on Friday, hitting $79.36. The company had a trading volume of 857,521 shares, compared to its average volume of 1,657,310. CarMax has a twelve month low of $65.83 and a twelve month 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 firm has a market cap of $12.21 billion, a P/E ratio of 26.92, a price-to-earnings-growth ratio of 1.50 and a beta of 1.71. The company has a 50-day moving average price of $82.01 and a 200-day moving average price of $79.00.

CarMax (NYSE:KMX - Get Free Report) last issued its earnings results 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. The firm had revenue of $6.22 billion during the quarter, compared to analysts' expectations of $6.05 billion. CarMax had a net margin of 1.77% and a return on equity of 7.49%. The firm's revenue was up 1.2% compared to the same quarter last year. During the same quarter last year, the company posted $0.52 earnings per share.

Insider Activity at CarMax

In other news, EVP James Lyski sold 57,986 shares of the company's stock in a transaction that occurred on Thursday, January 2nd. The stock was sold at an average price of $81.35, for a total value of $4,717,161.10. Following the completion of the sale, the executive vice president now directly owns 22,803 shares in the company, valued at $1,855,024.05. This represents a 71.77 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Jon G. Daniels sold 30,245 shares of the business's stock in a transaction on Tuesday, December 24th. The stock was sold at an average price of $84.34, for a total value of $2,550,863.30. Following the transaction, the senior vice president now directly owns 995 shares in the company, 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 ninety days, insiders sold 241,589 shares of company stock valued at $20,042,746. 1.66% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in KMX. Quarry LP lifted its stake in shares of CarMax by 78.6% in the 2nd quarter. Quarry LP now owns 418 shares of the company's stock valued at $31,000 after purchasing an additional 184 shares during the last quarter. Catalyst Capital Advisors LLC acquired a new position in CarMax during the 3rd quarter worth $32,000. True Wealth Design LLC increased its holdings in CarMax by 4,844.4% during 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 period. ST Germain D J Co. Inc. purchased a new position in shares of CarMax in the 4th quarter valued at about $58,000. Finally, Larson Financial Group LLC increased its stake in shares of CarMax by 91.9% during 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 period.

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.