Wedbush Issues Pessimistic Outlook for CarMax Earnings

CarMax, Inc. (NYSE:KMX) – Research analysts at Wedbush cut their Q1 2026 EPS estimates for shares of CarMax in a note issued to investors on Thursday, January 16th. Wedbush analyst S. Basham now anticipates that the company will earn $1.27 per share for the quarter, down from their previous forecast of $1.48. Wedbush has a “Outperform” rating and a $95.00 price objective 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 Q4 2026 earnings at $0.75 EPS.

CarMax (NYSE:KMX) last announced its quarterly 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. CarMax had a return on equity of 7.49% and a net margin of 1.77%. The company had revenue of $6.22 billion for the quarter, compared to the consensus estimate of $6.05 billion. During the same quarter in the previous year, the business earned $0.52 EPS. CarMax’s revenue was up 1.2% compared to the same quarter last year.

A number of other equities research analysts have also weighed in on KMX. Mizuho lifted their target price on shares of CarMax from $72.00 to $80.00 and gave the company a “neutral” rating in a research note on Friday, December 20th. Evercore ISI increased their target price on CarMax from $83.00 to $85.00 and gave the stock a “market perform” rating in a research report on Thursday, December 19th. JPMorgan Chase & Co. upped their price target on CarMax from $70.00 to $72.00 and gave the stock an “underweight” rating in a research note on Friday, December 20th. Stephens assumed coverage on CarMax in a research report on Thursday, December 5th. They set an “equal weight” rating and a $86.00 price objective for the company. Finally, Royal Bank of Canada upped 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, December 19th. Three investment analysts have rated the stock with a sell rating, six have assigned a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $85.17.

CarMax Price Performance

Shares of CarMax stock opened at $78.96 on Monday. The company has a market cap of $12.14 billion, a PE ratio of 26.77, a P/E/G ratio of 1.50 and a beta of 1.71. The business has a 50 day moving average of $82.12 and a 200 day moving average of $79.18. 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.

Insiders Place Their Bets

In other news, SVP Jon G. Daniels sold 10,000 shares of the business’s stock in a transaction on Thursday, December 26th. The shares were sold at an average price of $85.30, for a total value of $853,000.00. Following the transaction, the senior vice president now owns 995 shares of the company’s stock, valued at approximately $84,873.50. The trade was a 90.95 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Enrique N. Mayor-Mora sold 5,000 shares of CarMax stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $81.43, for a total transaction of $407,150.00. Following the completion of the sale, the chief financial officer now owns 20,260 shares in the company, valued at approximately $1,649,771.80. This represents a 19.79 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 259,598 shares of company stock worth $21,503,625 over the last quarter. 1.66% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On CarMax

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. First Hawaiian Bank bought a new position in CarMax during the fourth quarter valued at $273,000. World Investment Advisors LLC bought a new position in shares of CarMax during the 3rd quarter valued at approximately $6,942,000. Sumitomo Mitsui Trust Group Inc. raised its holdings in CarMax by 3.2% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 351,361 shares of the company’s stock valued at $27,188,000 after buying an additional 10,898 shares during the period. Eagle Rock Investment Company LLC bought a new stake in CarMax in the third quarter worth $747,000. Finally, Neo Ivy Capital Management purchased a new position in CarMax during the third quarter worth $3,934,000.

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.