Wedbush Weighs in on CarMax’s Q4 Earnings (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) – Equities researchers at Wedbush lifted their Q4 2025 earnings per share estimates for shares of CarMax in a research note issued to investors on Wednesday, February 19th. Wedbush analyst S. Basham now anticipates that the company will post earnings per share of $0.70 for the quarter, up from their previous estimate of $0.54. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share.

CarMax (NYSE:KMX) last released its quarterly earnings data on Thursday, December 19th. The company reported $0.81 EPS for the quarter, beating the consensus estimate 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 analyst estimates of $6.05 billion. During the same period last year, the company posted $0.52 earnings per share. The firm’s revenue was up 1.2% compared to the same quarter last year.

A number of other research firms have also recently weighed in on KMX. Needham & Company LLC upped their price target on CarMax from $98.00 to $101.00 and gave the stock a “buy” rating in a report on Monday, February 3rd. Evercore ISI raised shares of CarMax from an “in-line” rating to an “outperform” rating and raised their price target for the company from $90.00 to $110.00 in a report on Thursday, February 6th. Mizuho boosted their price objective on shares of CarMax from $72.00 to $80.00 and gave the stock a “neutral” rating in a report on Friday, December 20th. StockNews.com upgraded shares of CarMax from a “sell” rating to a “hold” rating in a report on Friday, December 20th. Finally, Stephens started coverage on shares of CarMax in a report on Thursday, December 5th. They issued an “equal weight” rating and a $86.00 price objective on the stock. Three equities research 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, CarMax presently has an average rating of “Hold” and a consensus price target of $87.50.

CarMax Stock Performance

Shares of NYSE:KMX opened at $82.62 on Friday. The business’s 50-day simple moving average is $83.39 and its 200 day simple moving average is $80.08. The company has a market cap of $12.71 billion, a P/E ratio of 28.01, a PEG ratio of 1.71 and a beta of 1.72. The company has a debt-to-equity ratio of 2.92, a quick ratio of 0.55 and a current ratio of 2.30. CarMax has a one year low of $65.83 and a one year high of $91.25.

Insider Transactions at CarMax

In other news, SVP Tyler Tuite sold 4,869 shares of the business’s stock in a transaction dated Tuesday, January 28th. The shares were sold at an average price of $84.58, for a total value of $411,820.02. Following the completion of the sale, the senior vice president now owns 227 shares of the company’s stock, valued at approximately $19,199.66. The trade was a 95.55 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Enrique N. Mayor-Mora sold 5,000 shares of the business’s stock in a transaction dated Wednesday, January 15th. The shares were sold at an average price of $81.43, for a total transaction of $407,150.00. Following the sale, the chief financial officer now directly owns 20,260 shares of the company’s stock, valued at approximately $1,649,771.80. This represents a 19.79 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 264,467 shares of company stock valued at $21,915,445. Insiders own 1.66% of the company’s stock.

Institutional Investors Weigh In On CarMax

Institutional investors have recently modified their holdings of the business. Catalyst Capital Advisors LLC bought a new stake in shares of CarMax during the 3rd quarter valued at about $32,000. Cromwell Holdings LLC grew its position in shares of CarMax by 104.8% during the 4th quarter. Cromwell Holdings LLC now owns 424 shares of the company’s stock valued at $35,000 after buying an additional 217 shares during the last quarter. True Wealth Design LLC grew its position in shares of CarMax by 4,844.4% during the 3rd quarter. True Wealth Design LLC now owns 445 shares of the company’s stock valued at $34,000 after buying an additional 436 shares during the last quarter. Allworth Financial LP grew its position in shares of CarMax by 62.7% during the 4th quarter. Allworth Financial LP now owns 646 shares of the company’s stock valued at $51,000 after buying an additional 249 shares during the last quarter. Finally, ST Germain D J Co. Inc. bought a new stake in shares of CarMax during the 4th quarter valued at about $58,000.

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.