Zacks Research Issues Negative Estimate for CarMax Earnings

CarMax, Inc. (NYSE:KMX) – Stock analysts at Zacks Research cut their Q4 2026 earnings estimates for CarMax in a research note issued to investors on Wednesday, January 15th. Zacks Research analyst R. Department now forecasts that the company will post earnings of $0.75 per share for the quarter, down from their prior forecast of $0.91. The consensus estimate for CarMax’s current full-year earnings is $3.18 per share.

Several other research firms have also weighed in on KMX. 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 report on Thursday, December 19th. Needham & Company LLC boosted their target price on shares of CarMax from $90.00 to $98.00 and gave the stock a “buy” rating in a report on Friday, December 20th. Wedbush reiterated an “outperform” rating and issued a $95.00 price target on shares of CarMax in a research note on Wednesday, October 16th. JPMorgan Chase & Co. lifted 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. Finally, Truist Financial upped their target price on shares of CarMax from $72.00 to $88.00 and gave the company a “hold” rating in a report on Friday, December 20th. Three investment analysts have rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the company’s stock. Based on data from MarketBeat.com, CarMax presently has a consensus rating of “Hold” and an average price target of $85.17.

CarMax Stock Performance

KMX opened at $78.96 on Monday. The business’s 50-day simple moving average is $82.12 and its 200 day simple moving average is $79.18. CarMax has a 52-week low of $65.83 and a 52-week high of $91.25. The company has a debt-to-equity ratio of 2.92, a quick ratio of 0.55 and a current ratio of 2.30. The firm has a market capitalization of $12.14 billion, a PE ratio of 26.77, a PEG ratio of 1.50 and a beta of 1.71.

CarMax (NYSE:KMX) last issued its quarterly earnings results on Thursday, December 19th. The company reported $0.81 EPS for the quarter, topping the consensus estimate of $0.62 by $0.19. The firm had revenue of $6.22 billion for the quarter, compared to analysts’ expectations of $6.05 billion. CarMax had a net margin of 1.77% and a return on equity of 7.49%. The company’s revenue for the quarter was up 1.2% on a year-over-year basis. During the same period in the previous year, the firm posted $0.52 EPS.

Institutional Investors Weigh In On CarMax

A number of large investors have recently bought and sold shares of the company. 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. Janus Henderson Group PLC raised its holdings in shares of CarMax by 0.6% during the 3rd 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 raised its holdings in shares of CarMax by 0.4% during the 3rd 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 in the last quarter. Dimensional Fund Advisors LP boosted its stake in CarMax by 2.6% in the second quarter. Dimensional Fund Advisors LP now owns 2,007,426 shares of the company’s stock valued at $147,230,000 after buying an additional 51,397 shares in the last quarter. Finally, Vulcan Value Partners LLC boosted its stake in CarMax by 299.7% in the second quarter. Vulcan Value Partners LLC now owns 1,827,139 shares of the company’s stock valued at $133,773,000 after buying an additional 1,369,986 shares in the last quarter.

Insider Activity at CarMax

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

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.