Zacks Research Analysts Lower Earnings Estimates for CarMax

CarMax, Inc. (NYSE:KMX - Free Report) - Stock analysts at Zacks Research dropped their Q1 2026 earnings estimates for shares of CarMax in a research note issued on Wednesday, February 19th. Zacks Research analyst R. Department now anticipates that the company will earn $1.25 per share for the quarter, down from their prior forecast of $1.28. The consensus estimate for CarMax's current full-year earnings is $3.23 per share. Zacks Research also issued estimates for CarMax's Q2 2026 earnings at $0.98 EPS, Q3 2026 earnings at $0.81 EPS, FY2026 earnings at $3.78 EPS, Q2 2027 earnings at $1.00 EPS, Q3 2027 earnings at $1.16 EPS and FY2027 earnings at $4.36 EPS.

CarMax (NYSE:KMX - Get Free Report) last issued its quarterly earnings data on Thursday, December 19th. The company reported $0.81 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.19. The business had revenue of $6.22 billion during the quarter, compared to the consensus estimate of $6.05 billion. CarMax had a net margin of 1.77% and a return on equity of 7.49%. The company's revenue was up 1.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.52 EPS.

Several other analysts have also issued reports on the stock. JPMorgan Chase & Co. upped their price target on shares of CarMax from $70.00 to $72.00 and gave the stock an "underweight" rating in a research report on Friday, December 20th. StockNews.com upgraded shares of CarMax from a "sell" rating to a "hold" rating in a report on Friday, December 20th. Stephens began coverage on shares of CarMax in a research report on Thursday, December 5th. They issued an "equal weight" rating and a $86.00 price target for the company. Needham & Company LLC upped their price target on shares of CarMax from $98.00 to $101.00 and gave the stock a "buy" rating in a research report on Monday, February 3rd. Finally, Royal Bank of Canada increased their price target on CarMax from $92.00 to $99.00 and gave the stock an "overweight" rating in a research report on Thursday, December 19th. Three analysts have rated the stock with a sell rating, five have given a hold rating and seven have given a buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $87.50.

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CarMax Stock Down 0.7 %

KMX stock traded down $0.60 during midday trading on Monday, reaching $81.92. The company had a trading volume of 1,238,597 shares, compared to its average volume of 1,553,795. CarMax has a 1 year low of $65.83 and a 1 year high of $91.25. The company has a market capitalization of $12.60 billion, a P/E ratio of 27.77, a PEG ratio of 1.67 and a beta of 1.72. The company has a current ratio of 2.30, a quick ratio of 0.55 and a debt-to-equity ratio of 2.92. The company has a 50 day moving average of $83.34 and a two-hundred day moving average of $80.27.

Insider Transactions at CarMax

In other news, EVP Mohammad Shamim sold 10,000 shares of the firm's stock in a transaction that occurred on Monday, December 23rd. The stock was sold at an average price of $83.77, for a total value of $837,700.00. Following the completion of the sale, the executive vice president now directly owns 11,738 shares of the company's stock, valued at $983,292.26. This trade represents a 46.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Enrique N. Mayor-Mora sold 5,000 shares of the stock in a transaction on Wednesday, January 15th. The stock was sold at an average price of $81.43, for a total transaction of $407,150.00. Following the sale, the chief financial officer now owns 20,260 shares of the company's stock, valued at approximately $1,649,771.80. This trade represents a 19.79 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 264,467 shares of company stock valued at $21,915,445 in the last quarter. 1.66% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Principal Financial Group Inc. boosted its stake in CarMax by 3.4% during the fourth quarter. Principal Financial Group Inc. now owns 8,591,297 shares of the company's stock valued at $702,425,000 after buying an additional 282,519 shares during the last quarter. Kovitz Investment Group Partners LLC grew its stake in shares of 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 buying an additional 5,122,850 shares in the last quarter. State Street Corp boosted its position in shares of CarMax by 0.6% during the 3rd quarter. State Street Corp now owns 6,193,174 shares of the company's stock worth $479,228,000 after acquiring an additional 36,959 shares in the last quarter. Norges Bank acquired a new position in CarMax in the 4th quarter valued at about $423,187,000. Finally, Janus Henderson Group PLC increased its stake in CarMax by 0.6% in the 4th quarter. Janus Henderson Group PLC now owns 4,671,950 shares of the company's stock valued at $381,978,000 after purchasing an additional 29,715 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.