Zacks Research Brokers Lower Earnings Estimates for CarMax

CarMax, Inc. (NYSE:KMX) – Stock analysts at Zacks Research reduced their Q4 2026 EPS estimates for shares of CarMax in a research note issued to investors on Wednesday, February 19th. Zacks Research analyst R. Department now forecasts that the company will post earnings of $0.74 per share for the quarter, down from their previous forecast of $0.75. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share. Zacks Research also issued estimates for CarMax’s Q1 2027 earnings at $1.25 EPS.

KMX has been the topic of a number of other research reports. Needham & Company LLC upped their target price on shares of CarMax from $98.00 to $101.00 and gave the company a “buy” rating in a research report on Monday, February 3rd. Stephens initiated coverage on shares of CarMax in a research report on Thursday, December 5th. They issued an “equal weight” rating and a $86.00 target price on the stock. StockNews.com raised shares of CarMax from a “sell” rating to a “hold” rating in a research report on Friday, December 20th. Royal Bank of Canada upped their target price 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, 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 research report on Friday, December 20th. Three analysts have rated the stock with a sell rating, five have issued a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $87.50.

CarMax Trading Down 3.5 %

Shares of KMX stock opened at $82.62 on Friday. The company’s 50-day moving average price is $83.39 and its 200-day moving average price is $80.08. CarMax has a twelve month low of $65.83 and a twelve month high of $91.25. The company has a current ratio of 2.30, a quick ratio of 0.55 and a debt-to-equity ratio of 2.92. The stock has a market cap of $12.71 billion, a price-to-earnings ratio of 28.01, a PEG ratio of 1.71 and a beta of 1.72.

CarMax (NYSE:KMX) last announced its quarterly earnings results on Thursday, December 19th. The company reported $0.81 earnings per share for the quarter, beating 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 was up 1.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.52 EPS.

Insider Buying and Selling

In other CarMax news, SVP Jon G. Daniels sold 10,000 shares of the firm’s stock in a transaction dated Thursday, December 26th. The stock was sold at an average price of $85.30, for a total value of $853,000.00. Following the sale, the senior vice president now directly owns 995 shares of the company’s stock, valued at approximately $84,873.50. This trade represents a 90.95 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO William D. Nash sold 120,513 shares of CarMax 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 completion of the transaction, the chief executive officer now directly owns 181,683 shares in the company, valued at $15,123,292.92. This represents a 39.88 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 264,467 shares of company stock worth $21,915,445. 1.66% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On CarMax

Several hedge funds and other institutional investors have recently modified their holdings of the company. Principal Financial Group Inc. lifted its stake in shares of CarMax by 3.4% in the 4th quarter. Principal Financial Group Inc. now owns 8,591,297 shares of the company’s stock valued at $702,425,000 after purchasing an additional 282,519 shares in the last quarter. Kovitz Investment Group Partners LLC lifted its position in CarMax by 348.0% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 6,595,067 shares of the company’s stock worth $539,213,000 after acquiring an additional 5,122,850 shares in the last quarter. State Street Corp boosted 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 acquiring an additional 36,959 shares during the period. Norges Bank purchased a new position in CarMax in the 4th quarter worth approximately $423,187,000. Finally, Janus Henderson Group PLC boosted its holdings in CarMax by 0.6% in the 4th quarter. Janus Henderson Group PLC now owns 4,671,950 shares of the company’s stock worth $381,978,000 after acquiring an additional 29,715 shares during the period.

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.