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

CarMax, Inc. (NYSE:KMX) – Equities researchers at Wedbush decreased their Q2 2025 earnings estimates for shares of CarMax in a research report issued to clients and investors on Tuesday, September 17th. Wedbush analyst S. Basham now forecasts that the company will post earnings per share of $0.86 for the quarter, down from their prior forecast of $0.94. Wedbush has a “Outperform” rating and a $95.00 price target on the stock. The consensus estimate for CarMax’s current full-year earnings is $2.99 per share. Wedbush also issued estimates for CarMax’s Q4 2025 earnings at $0.60 EPS, FY2025 earnings at $3.06 EPS, Q2 2026 earnings at $1.01 EPS, Q3 2026 earnings at $0.74 EPS and Q4 2026 earnings at $0.60 EPS.

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

A number of other equities analysts also recently issued reports on KMX. Evercore ISI raised their price objective on CarMax from $68.00 to $72.00 and gave the stock an “in-line” rating in a research report on Tuesday, July 16th. Royal Bank of Canada boosted their price target on shares of CarMax from $73.00 to $75.00 and gave the stock an “outperform” rating in a research report on Monday, June 24th. StockNews.com upgraded shares of CarMax to a “sell” rating in a research report on Friday, July 26th. Argus upgraded shares of CarMax to a “hold” rating in a report on Tuesday, June 25th. Finally, Truist Financial increased their price target on CarMax from $66.00 to $70.00 and gave the stock a “hold” rating in a report on Monday, June 24th. Three equities research analysts have rated the stock with a sell rating, five have issued a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $77.08.

CarMax Stock Up 0.2 %

Shares of NYSE:KMX opened at $77.39 on Wednesday. The business has a fifty day simple moving average of $80.41 and a 200 day simple moving average of $76.54. CarMax has a 12-month low of $59.66 and a 12-month high of $88.22. The firm has a market cap of $12.08 billion, a P/E ratio of 30.23, a P/E/G ratio of 1.53 and a beta of 1.69. The company has a quick ratio of 0.60, a current ratio of 2.50 and a debt-to-equity ratio of 2.95.

Hedge Funds Weigh In On CarMax

Large investors have recently added to or reduced their stakes in the business. Baker Tilly Wealth Management LLC increased its holdings in CarMax by 4.6% during the 2nd quarter. Baker Tilly Wealth Management LLC now owns 2,959 shares of the company’s stock worth $217,000 after purchasing an additional 130 shares in the last quarter. GAMMA Investing LLC grew its holdings in CarMax by 6.5% during the first quarter. GAMMA Investing LLC now owns 2,156 shares of the company’s stock worth $188,000 after buying an additional 131 shares in the last quarter. Peoples Bank KS raised its position in CarMax by 10.0% in the 2nd quarter. Peoples Bank KS now owns 1,479 shares of the company’s stock valued at $108,000 after buying an additional 135 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in CarMax by 2.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 6,220 shares of the company’s stock valued at $456,000 after acquiring an additional 142 shares in the last quarter. Finally, Allegheny Financial Group LTD boosted its holdings in CarMax by 4.1% during the 2nd quarter. Allegheny Financial Group LTD now owns 3,597 shares of the company’s stock worth $264,000 after acquiring an additional 143 shares during the last quarter.

Insider Activity

In related news, SVP Jon G. Daniels sold 1,231 shares of the company’s stock in a transaction that occurred on Wednesday, June 26th. The stock was sold at an average price of $72.46, for a total transaction of $89,198.26. Following the transaction, the senior vice president now directly owns 995 shares of the company’s stock, valued at approximately $72,097.70. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. In related news, SVP Jon G. Daniels sold 1,231 shares of CarMax stock in a transaction on Wednesday, June 26th. The shares were sold at an average price of $72.46, for a total value of $89,198.26. Following the completion of the sale, the senior vice president now owns 995 shares of the company’s stock, valued at approximately $72,097.70. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO William D. Nash sold 120,000 shares of the company’s stock in a transaction on Thursday, July 11th. The stock was sold at an average price of $79.62, for a total transaction of $9,554,400.00. Following the transaction, the chief executive officer now owns 181,683 shares in the company, valued at approximately $14,465,600.46. The disclosure for this sale can be found here. Insiders sold a total of 185,243 shares of company stock worth $14,893,042 in the last three months. Company 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.