Brokers Issue Forecasts for CarMax’s Q2 Earnings (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) – Equities researchers at Wedbush boosted their Q2 2026 earnings estimates for shares of CarMax in a research report issued on Thursday, January 16th. Wedbush analyst S. Basham now expects that the company will earn $1.07 per share for the quarter, up from their prior estimate of $1.03. 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 $3.18 per share. Wedbush also issued estimates for CarMax’s Q3 2026 earnings at $0.92 EPS and FY2027 earnings at $4.70 EPS.

CarMax (NYSE:KMX) last posted its earnings results on Thursday, December 19th. The company reported $0.81 earnings per share (EPS) 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 return on equity of 7.49% and a net margin of 1.77%. The company’s revenue for the quarter 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.

Several other research analysts also recently weighed in on the stock. JPMorgan Chase & Co. upped 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, December 20th. StockNews.com upgraded CarMax from a “sell” rating to a “hold” rating in a research note on Friday, December 20th. Royal Bank of Canada boosted their price target on CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a research note on Thursday, December 19th. Evercore ISI raised their price objective on CarMax from $83.00 to $85.00 and gave the company a “market perform” rating in a research note on Thursday, December 19th. Finally, Stephens started coverage on CarMax in a report on Thursday, December 5th. They set an “equal weight” rating and a $86.00 price objective on the stock. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating and six have assigned a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $85.17.

CarMax Stock Down 0.9 %

Shares of NYSE:KMX opened at $78.96 on Friday. The company has a market capitalization of $12.14 billion, a price-to-earnings ratio of 26.77, a price-to-earnings-growth ratio of 1.50 and a beta of 1.71. The company has a 50 day moving average of $82.07 and a two-hundred day moving average of $79.10. CarMax has a 52-week low of $65.83 and a 52-week 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.

Insider Buying and Selling

In other CarMax news, CEO William D. Nash sold 120,513 shares of the firm’s stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $83.24, for a total value of $10,031,502.12. Following the transaction, the chief executive officer now owns 181,683 shares of the company’s stock, valued at $15,123,292.92. This trade represents a 39.88 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Mohammad Shamim sold 10,000 shares of CarMax stock in a transaction that occurred on Monday, December 23rd. The shares were sold at an average price of $83.77, for a total value of $837,700.00. Following the completion of the transaction, the executive vice president now owns 11,738 shares of the company’s stock, valued at approximately $983,292.26. The trade was a 46.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 259,598 shares of company stock worth $21,503,625 over the last ninety days. 1.66% of the stock is owned by insiders.

Institutional Investors Weigh In On CarMax

Large investors have recently added to or reduced their stakes in the stock. Quarry LP grew its position in shares of CarMax by 78.6% during the second quarter. Quarry LP now owns 418 shares of the company’s stock worth $31,000 after acquiring an additional 184 shares during the last quarter. Catalyst Capital Advisors LLC bought a new position in CarMax in the 3rd quarter worth about $32,000. True Wealth Design LLC increased its stake in shares of CarMax by 4,844.4% in the third quarter. True Wealth Design LLC now owns 445 shares of the company’s stock valued at $34,000 after purchasing an additional 436 shares during the period. Larson Financial Group LLC raised its holdings in shares of CarMax by 91.9% during the third quarter. Larson Financial Group LLC now owns 737 shares of the company’s stock valued at $57,000 after buying an additional 353 shares during the last quarter. Finally, ST Germain D J Co. Inc. acquired a new position in shares of CarMax during the fourth quarter worth approximately $58,000.

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.