Wedbush Analysts Boost Earnings Estimates for CarMax, Inc. (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) – Stock analysts at Wedbush upped their Q2 2025 earnings per share estimates for shares of CarMax in a report issued on Tuesday, June 18th. Wedbush analyst S. Basham now expects that the company will earn $1.06 per share for the quarter, up from their previous forecast of $1.01. Wedbush currently has a “Outperform” rating and a $90.00 price target on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.09 per share. Wedbush also issued estimates for CarMax’s Q3 2025 earnings at $0.70 EPS and Q2 2026 earnings at $1.16 EPS.

Other analysts also recently issued reports about the stock. Morgan Stanley reaffirmed an “overweight” rating and issued a $80.00 price objective on shares of CarMax in a report on Friday. Mizuho lowered their price target on shares of CarMax from $75.00 to $72.00 and set a “neutral” rating on the stock in a report on Tuesday. Needham & Company LLC reduced their price objective on CarMax from $99.00 to $91.00 and set a “buy” rating for the company in a research note on Friday, April 12th. Robert W. Baird decreased their price objective on CarMax from $88.00 to $84.00 and set an “outperform” rating for the company in a report on Friday, April 12th. Finally, Evercore ISI dropped their target price on CarMax from $73.00 to $68.00 and set an “in-line” rating on the stock in a report on Thursday. Three investment analysts have rated the stock with a sell rating, four have assigned a hold rating and six have given a buy rating to the company. Based on data from MarketBeat.com, CarMax currently has an average rating of “Hold” and an average target price of $76.17.

CarMax Price Performance

Shares of NYSE:KMX opened at $71.63 on Friday. CarMax has a twelve month low of $59.66 and a twelve month high of $88.22. The company has a current ratio of 2.26, a quick ratio of 0.67 and a debt-to-equity ratio of 2.96. The company has a market cap of $11.27 billion, a PE ratio of 23.64, a price-to-earnings-growth ratio of 1.39 and a beta of 1.69. The company’s 50 day moving average is $70.25 and its 200 day moving average is $73.74.

CarMax (NYSE:KMX) last announced its quarterly earnings data on Friday, June 21st. The company reported $0.97 earnings per share for the quarter, missing analysts’ consensus estimates of $1.03 by ($0.06). CarMax had a net margin of 1.81% and a return on equity of 7.26%. The firm had revenue of $7.11 billion during the quarter, compared to analyst estimates of $7.16 billion. During the same period in the prior year, the company posted $1.16 earnings per share. The firm’s revenue for the quarter was down 7.5% on a year-over-year basis.

Hedge Funds Weigh In On CarMax

A number of hedge funds have recently modified their holdings of KMX. DekaBank Deutsche Girozentrale increased its holdings in CarMax by 1.6% in the 1st quarter. DekaBank Deutsche Girozentrale now owns 31,039 shares of the company’s stock valued at $2,682,000 after purchasing an additional 498 shares during the last quarter. Cetera Advisors LLC raised its holdings in shares of CarMax by 48.7% in the 1st quarter. Cetera Advisors LLC now owns 9,178 shares of the company’s stock valued at $799,000 after buying an additional 3,004 shares during the period. Cetera Investment Advisers lifted its stake in CarMax by 942.3% during the 1st quarter. Cetera Investment Advisers now owns 125,790 shares of the company’s stock worth $10,958,000 after acquiring an additional 113,721 shares in the last quarter. Atria Investments Inc boosted its holdings in CarMax by 11.6% during the 1st quarter. Atria Investments Inc now owns 41,221 shares of the company’s stock valued at $3,591,000 after acquiring an additional 4,286 shares during the period. Finally, Swedbank AB acquired a new position in CarMax in the 1st quarter valued at about $1,406,000.

Insider Activity at CarMax

In related news, EVP Diane L. Cafritz sold 15,356 shares of the firm’s stock in a transaction dated Tuesday, April 23rd. The shares were sold at an average price of $69.53, for a total transaction of $1,067,702.68. Following the completion of the sale, the executive vice president now directly owns 6,977 shares in the company, valued at $485,110.81. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders own 1.66% of the company’s stock.

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.