Wedbush Research Analysts Lift Earnings Estimates for CarMax

CarMax, Inc. (NYSE:KMX) – Investment analysts at Wedbush lifted their FY2025 earnings per share (EPS) estimates for CarMax in a research note issued on Friday, December 20th. Wedbush analyst S. Basham now forecasts that the company will post earnings per share of $3.17 for the year, up from their prior forecast of $2.95. 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 $3.01 per share. Wedbush also issued estimates for CarMax’s Q4 2025 earnings at $0.54 EPS and Q4 2026 earnings at $0.58 EPS.

A number of other analysts have also issued reports on KMX. JPMorgan Chase & Co. boosted their target price on shares of CarMax from $70.00 to $72.00 and gave the company an “underweight” rating in a research note on Friday. Evercore ISI boosted their price objective on shares of CarMax from $83.00 to $85.00 and gave the company a “market perform” rating in a research report on Thursday. Royal Bank of Canada raised their target price on shares of CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a research report on Thursday. BNP Paribas upgraded CarMax to a “strong sell” rating in a report on Friday, September 27th. Finally, StockNews.com upgraded CarMax from a “sell” rating to a “hold” rating in a report on Friday. Three research analysts have rated the stock with a sell rating, six have issued a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $85.17.

CarMax Price Performance

Shares of KMX stock opened at $84.27 on Monday. The stock has a 50 day moving average price of $79.01 and a 200 day moving average price of $77.69. The firm has a market capitalization of $13.06 billion, a P/E ratio of 31.68, a P/E/G ratio of 1.76 and a beta of 1.71. The company has a debt-to-equity ratio of 2.93, a quick ratio of 0.68 and a current ratio of 2.25. CarMax has a 52-week low of $65.83 and a 52-week high of $91.25.

CarMax (NYSE:KMX) last announced its quarterly earnings data 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 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 1.61% and a return on equity of 6.83%. The firm’s quarterly revenue was up 1.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.52 earnings per share.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Quarry LP boosted its stake in CarMax by 78.6% in the second quarter. Quarry LP now owns 418 shares of the company’s stock valued at $31,000 after acquiring an additional 184 shares in the last quarter. Catalyst Capital Advisors LLC purchased a new stake in shares of CarMax during the 3rd quarter valued at $32,000. True Wealth Design LLC boosted its position in shares of CarMax by 4,844.4% in 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 in the last quarter. Studio Investment Management LLC grew its stake in CarMax by 176.7% during the 2nd quarter. Studio Investment Management LLC now owns 523 shares of the company’s stock worth $38,000 after buying an additional 334 shares during the last quarter. Finally, Larson Financial Group LLC increased its position in CarMax by 91.9% during the 3rd quarter. Larson Financial Group LLC now owns 737 shares of the company’s stock valued at $57,000 after buying an additional 353 shares in 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.