Brokers Set Expectations for CarMax, Inc.’s Q3 2025 Earnings (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) – Research analysts at Wedbush lowered their Q3 2025 earnings per share (EPS) estimates for shares of CarMax in a note issued to investors on Tuesday, September 17th. Wedbush analyst S. Basham now expects that the company will earn $0.62 per share for the quarter, down from their previous forecast of $0.73. Wedbush has a “Outperform” rating and a $95.00 price target on the stock. The consensus estimate for CarMax’s current full-year earnings is $2.99 per share. Wedbush also issued estimates for CarMax’s Q1 2026 earnings at $1.28 EPS, FY2026 earnings at $3.64 EPS and FY2027 earnings at $4.45 EPS.

CarMax (NYSE:KMX) last posted its quarterly earnings data on Friday, June 21st. The company reported $0.97 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.03. CarMax had a return on equity of 6.64% and a net margin of 1.55%. The company had revenue of $7.11 billion during the quarter, compared to analysts’ expectations of $7.16 billion. During the same period in the prior year, the business earned $1.16 earnings per share. CarMax’s revenue for the quarter was down 7.5% compared to the same quarter last year.

KMX has been the topic of several other research reports. Needham & Company LLC dropped their price objective on shares of CarMax from $91.00 to $87.00 and set a “buy” rating on the stock in a report on Monday, June 24th. Mizuho lowered their price target on CarMax from $75.00 to $72.00 and set a “neutral” rating on the stock in a research note on Tuesday, June 18th. StockNews.com upgraded CarMax to a “sell” rating in a research report on Friday, July 26th. Truist Financial boosted their price objective on CarMax from $66.00 to $70.00 and gave the company a “hold” rating in a research report on Monday, June 24th. Finally, Morgan Stanley restated an “overweight” rating and issued a $80.00 target price on shares of CarMax in a research note on Friday, June 21st. Three analysts have rated the stock with a sell rating, five have assigned a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $77.08.

CarMax Price Performance

NYSE:KMX opened at $77.39 on Thursday. The company has a debt-to-equity ratio of 2.95, a current ratio of 2.50 and a quick ratio of 0.60. CarMax has a one year low of $59.66 and a one year high of $88.22. The company has a fifty day moving average price of $80.41 and a 200 day moving average price of $76.54. The stock has a market cap of $12.08 billion, a P/E ratio of 30.23, a PEG ratio of 1.53 and a beta of 1.69.

Hedge Funds Weigh In On CarMax

Several institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its position in shares of CarMax by 1.2% during the fourth quarter. Vanguard Group Inc. now owns 18,076,909 shares of the company’s stock worth $1,387,222,000 after purchasing an additional 222,132 shares in the last quarter. Norges Bank bought a new position in CarMax in the 4th quarter valued at $288,278,000. Morningstar Investment Services LLC boosted its position in CarMax by 95.4% in the 4th quarter. Morningstar Investment Services LLC now owns 2,717,326 shares of the company’s stock valued at $211,516,000 after buying an additional 1,326,840 shares during the last quarter. First Pacific Advisors LP increased its stake in shares of CarMax by 2.0% in the 2nd quarter. First Pacific Advisors LP now owns 2,386,210 shares of the company’s stock valued at $175,005,000 after buying an additional 47,184 shares during the period. Finally, Dimensional Fund Advisors LP raised its position in shares of CarMax by 2.6% during the second quarter. Dimensional Fund Advisors LP now owns 2,007,426 shares of the company’s stock worth $147,230,000 after acquiring an additional 51,397 shares during the last quarter.

Insider Activity

In related news, SVP Jon G. Daniels sold 1,231 shares of the stock in a transaction dated Wednesday, June 26th. The shares were sold at an average price of $72.46, for a total transaction of $89,198.26. Following the completion of the sale, the senior vice president now owns 995 shares in the company, valued at approximately $72,097.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In other CarMax news, SVP Jon G. Daniels sold 1,231 shares of the business’s stock in a transaction dated Wednesday, June 26th. The shares were sold at an average price of $72.46, for a total value of $89,198.26. Following the transaction, the senior vice president now directly owns 995 shares in the company, valued at $72,097.70. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CEO William D. Nash sold 120,000 shares of the firm’s stock in a transaction that occurred on Thursday, July 11th. The stock was sold at an average price of $79.62, for a total transaction of $9,554,400.00. Following the sale, the chief executive officer now directly owns 181,683 shares of the company’s stock, valued at approximately $14,465,600.46. The disclosure for this sale can be found here. In the last quarter, insiders have sold 185,243 shares of company stock worth $14,893,042. Corporate insiders own 1.66% of the company’s stock.

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.