Zacks Research Has Positive Forecast for CarMax Q1 Earnings

CarMax, Inc. (NYSE:KMX) – Equities research analysts at Zacks Research increased their Q1 2026 earnings per share estimates for shares of CarMax in a report issued on Wednesday, January 15th. Zacks Research analyst R. Department now expects 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.

Other research analysts have also issued research reports about the company. Wedbush reaffirmed an “outperform” rating and set a $95.00 target price on shares of CarMax in a report on Wednesday, October 16th. JPMorgan Chase & Co. raised their price objective on shares of CarMax from $70.00 to $72.00 and gave the company an “underweight” rating in a research report on Friday, December 20th. Truist Financial increased their target price on shares of CarMax from $72.00 to $88.00 and gave the stock a “hold” rating in a research note on Friday, December 20th. Royal Bank of Canada boosted their price target on shares of CarMax from $92.00 to $99.00 and gave the company an “overweight” rating in a research report on Thursday, December 19th. Finally, StockNews.com upgraded CarMax from a “sell” rating to a “hold” rating in a research report on Friday, December 20th. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating and six have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $85.17.

CarMax Price Performance

Shares of NYSE KMX opened at $78.96 on Friday. The company has a debt-to-equity ratio of 2.92, a quick ratio of 0.55 and a current ratio of 2.30. CarMax has a fifty-two week low of $65.83 and a fifty-two week high of $91.25. The stock has a market cap of $12.14 billion, a PE ratio of 26.77, a price-to-earnings-growth ratio of 1.50 and a beta of 1.71. The stock has a fifty day moving average of $82.07 and a 200-day moving average of $79.10.

CarMax (NYSE:KMX) last released its quarterly earnings data on Thursday, December 19th. The company reported $0.81 earnings per share for the quarter, beating analysts’ consensus estimates of $0.62 by $0.19. The business had revenue of $6.22 billion during the quarter, compared to analyst estimates of $6.05 billion. CarMax had a net margin of 1.77% and a return on equity of 7.49%. CarMax’s revenue was up 1.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.52 EPS.

Insiders Place Their Bets

In other CarMax news, EVP Mohammad Shamim sold 10,000 shares of the company’s stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $83.77, for a total transaction of $837,700.00. Following the completion of the sale, the executive vice president now directly owns 11,738 shares in the company, valued at $983,292.26. This 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 hyperlink. Also, CEO William D. Nash sold 120,513 shares of CarMax stock in a transaction dated Monday, December 23rd. The stock was sold at an average price of $83.24, for a total value of $10,031,502.12. Following the completion of the transaction, the chief executive officer now owns 181,683 shares in the company, valued at approximately $15,123,292.92. This represents a 39.88 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 259,598 shares of company stock valued at $21,503,625 over the last quarter. 1.66% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. State Street Corp raised its holdings in CarMax by 0.6% in the 3rd quarter. State Street Corp now owns 6,193,174 shares of the company’s stock worth $479,228,000 after purchasing an additional 36,959 shares in the last quarter. Janus Henderson Group PLC raised its stake in CarMax by 0.6% in the third quarter. Janus Henderson Group PLC now owns 4,642,235 shares of the company’s stock worth $359,216,000 after buying an additional 28,466 shares in the last quarter. Geode Capital Management LLC lifted its holdings in CarMax by 0.4% in the third quarter. Geode Capital Management LLC now owns 3,663,209 shares of the company’s stock worth $282,479,000 after buying an additional 14,903 shares during the period. Dimensional Fund Advisors LP lifted its holdings in CarMax by 2.6% in the second quarter. Dimensional Fund Advisors LP now owns 2,007,426 shares of the company’s stock worth $147,230,000 after buying an additional 51,397 shares during the period. Finally, Vulcan Value Partners LLC boosted its position in CarMax by 299.7% during the 2nd quarter. Vulcan Value Partners LLC now owns 1,827,139 shares of the company’s stock valued at $133,773,000 after acquiring an additional 1,369,986 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.