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

CarMax, Inc. (NYSE:KMX) – Stock analysts at Wedbush raised their Q3 2025 EPS estimates for CarMax in a research note issued on Monday, June 24th. Wedbush analyst S. Basham now forecasts that the company will earn $0.71 per share for the quarter, up from their prior forecast of $0.70. Wedbush has a “Outperform” rating and a $90.00 price objective on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.06 per share. Wedbush also issued estimates for CarMax’s FY2025 earnings at $3.35 EPS, Q1 2026 earnings at $1.29 EPS, Q2 2026 earnings at $1.09 EPS, Q3 2026 earnings at $0.80 EPS, Q4 2026 earnings at $0.62 EPS and FY2027 earnings at $4.51 EPS.

CarMax (NYSE:KMX) last released its earnings results on Friday, June 21st. The company reported $0.97 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.94 by $0.03. The firm had revenue of $7.11 billion during the quarter, compared to analyst estimates of $7.16 billion. CarMax had a return on equity of 6.64% and a net margin of 1.55%. CarMax’s revenue was down 7.5% compared to the same quarter last year. During the same period last year, the business posted $1.16 earnings per share.

KMX has been the topic of a number of other reports. Truist Financial raised their price objective on shares of CarMax from $66.00 to $70.00 and gave the company a “hold” rating in a report on Monday. StockNews.com upgraded CarMax to a “sell” rating in a research note on Monday, April 22nd. Evercore ISI dropped their price target on shares of CarMax from $73.00 to $68.00 and set an “in-line” rating on the stock in a research note on Thursday, June 20th. Mizuho reduced their price objective on shares of CarMax from $75.00 to $72.00 and set a “neutral” rating for the company in a research report on Tuesday, June 18th. Finally, Bank of America increased their target price on shares of CarMax from $44.00 to $50.00 and gave the company an “underperform” rating in a research report on Thursday, February 29th. Three equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat.com, CarMax has an average rating of “Hold” and a consensus target price of $75.50.

CarMax Stock Down 1.9 %

KMX stock opened at $71.77 on Tuesday. CarMax has a fifty-two week low of $59.66 and a fifty-two week high of $88.22. The company’s 50 day moving average price is $70.36 and its 200 day moving average price is $73.95. The company has a debt-to-equity ratio of 2.95, a quick ratio of 0.60 and a current ratio of 2.50. The firm has a market capitalization of $11.30 billion, a price-to-earnings ratio of 28.04, a PEG ratio of 1.41 and a beta of 1.69.

Insider Activity at CarMax

In related news, EVP Diane L. Cafritz sold 15,356 shares of the stock in a transaction on Tuesday, April 23rd. The stock was 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 of the company’s stock, valued at $485,110.81. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 1.66% of the stock is currently owned by insiders.

Hedge Funds Weigh In On CarMax

Several institutional investors and hedge funds have recently added to or reduced their stakes in KMX. Allworth Financial LP grew its stake in shares of CarMax by 153.3% during the 4th quarter. Allworth Financial LP now owns 342 shares of the company’s stock worth $26,000 after purchasing an additional 207 shares during the period. Creative Financial Designs Inc. ADV increased its holdings in CarMax by 1,081.1% in the fourth quarter. Creative Financial Designs Inc. ADV now owns 437 shares of the company’s stock valued at $34,000 after buying an additional 400 shares in the last quarter. Mendota Financial Group LLC purchased a new position in CarMax in the fourth quarter valued at about $37,000. MCF Advisors LLC acquired a new stake in shares of CarMax during the 4th quarter valued at approximately $46,000. Finally, Lindbrook Capital LLC boosted its stake in shares of CarMax by 32.8% during the 4th quarter. Lindbrook Capital LLC now owns 628 shares of the company’s stock worth $48,000 after acquiring an additional 155 shares in the last quarter.

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.