Seaport Res Ptn Research Analysts Cut Earnings Estimates for CarMax, Inc. (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) – Equities researchers at Seaport Res Ptn reduced their Q1 2025 earnings per share (EPS) estimates for shares of CarMax in a research note issued on Friday, April 19th. Seaport Res Ptn analyst G. Chin now forecasts that the company will post earnings per share of $1.08 for the quarter, down from their previous estimate of $1.22. The consensus estimate for CarMax’s current full-year earnings is $3.30 per share. Seaport Res Ptn also issued estimates for CarMax’s Q2 2025 earnings at $0.87 EPS, Q4 2025 earnings at $0.66 EPS, FY2025 earnings at $3.20 EPS and FY2026 earnings at $3.85 EPS.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Thursday, April 11th. The company reported $0.32 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.13). CarMax had a net margin of 1.81% and a return on equity of 7.26%. The company had revenue of $5.63 billion for the quarter, compared to analysts’ expectations of $5.76 billion. During the same period last year, the business earned $0.44 earnings per share. The company’s quarterly revenue was down 1.7% compared to the same quarter last year.

KMX has been the topic of several other research reports. Robert W. Baird decreased their price target on shares of CarMax from $88.00 to $84.00 and set an “outperform” rating on the stock in a research note on Friday, April 12th. Needham & Company LLC dropped their price target on CarMax from $99.00 to $91.00 and set a “buy” rating for the company in a research note on Friday, April 12th. Oppenheimer restated an “outperform” rating and set a $105.00 price target on shares of CarMax in a report on Tuesday, April 9th. Evercore ISI reduced their price objective on CarMax from $85.00 to $74.00 and set an “in-line” rating on the stock in a research note on Friday, April 12th. Finally, Bank of America increased their target price on CarMax from $44.00 to $50.00 and gave the company an “underperform” rating in a research report on Thursday, February 29th. Three investment analysts have rated the stock with a sell rating, five have issued a hold rating and five have given a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $77.42.

CarMax Price Performance

Shares of NYSE:KMX opened at $67.88 on Monday. The company has a debt-to-equity ratio of 2.96, a quick ratio of 0.67 and a current ratio of 2.26. The firm has a market cap of $10.68 billion, a price-to-earnings ratio of 22.40, a P/E/G ratio of 1.13 and a beta of 1.61. The firm has a fifty day moving average price of $78.24 and a 200 day moving average price of $72.10. CarMax has a fifty-two week low of $59.66 and a fifty-two week high of $88.22.

Institutional Investors Weigh In On CarMax

Several large investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its position in CarMax by 1.2% in the 4th quarter. Vanguard Group Inc. now owns 18,076,909 shares of the company’s stock valued at $1,387,222,000 after buying an additional 222,132 shares during the last quarter. Diamond Hill Capital Management Inc. boosted its holdings in shares of CarMax by 3.9% in the third quarter. Diamond Hill Capital Management Inc. now owns 5,548,673 shares of the company’s stock valued at $392,458,000 after acquiring an additional 210,440 shares in the last quarter. Norges Bank acquired a new position in shares of CarMax during the fourth quarter worth about $288,278,000. Invesco Ltd. raised its holdings in CarMax by 3.1% during the third quarter. Invesco Ltd. now owns 2,938,541 shares of the company’s stock worth $207,843,000 after purchasing an additional 88,488 shares in the last quarter. Finally, Morningstar Investment Services LLC lifted its position in CarMax by 95.4% in the fourth quarter. Morningstar Investment Services LLC now owns 2,717,326 shares of the company’s stock valued at $211,516,000 after purchasing an additional 1,326,840 shares during the period.

Insider Activity

In related news, VP Jill A. Livesay sold 14,199 shares of the firm’s stock in a transaction on Monday, January 29th. The stock was sold at an average price of $70.89, for a total value of $1,006,567.11. Following the completion of the sale, the vice president now directly owns 9,068 shares in the company, valued at $642,830.52. The sale was disclosed in a filing with the SEC, which can be accessed through this link. In related news, EVP Diane L. Cafritz sold 22,000 shares of the company’s stock in a transaction on Friday, January 26th. The shares were sold at an average price of $70.08, for a total value of $1,541,760.00. Following the completion of the sale, the executive vice president now owns 5,073 shares in the company, valued at approximately $355,515.84. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, VP Jill A. Livesay sold 14,199 shares of the stock in a transaction dated Monday, January 29th. The stock was sold at an average price of $70.89, for a total transaction of $1,006,567.11. Following the sale, the vice president now owns 9,068 shares of the company’s stock, valued at approximately $642,830.52. The disclosure for this sale can be found here. Corporate insiders own 1.66% of the company’s stock.

CarMax Company Profile

CarMax, Inc, together with its subsidiaries, operates as a retailer of used vehicles in the United States. It operates in two segments, CarMax Sales Operations and CarMax Auto Finance. The company offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; and extended protection plans to customers at the time of sale, as well as sells vehicles that are approximately 10 years old and has more than 100,000 miles through wholesale auctions.