Wedbush Research Analysts Lift Earnings Estimates for CarMax

CarMax, Inc. (NYSE:KMX) – Equities researchers at Wedbush boosted their FY2026 earnings estimates for shares of CarMax in a research report issued on Thursday, October 16th. Wedbush analyst S. Devitt now expects that the company will earn $3.60 per share for the year, up from their prior estimate of $3.58. Wedbush has a “Neutral” rating and a $54.00 price target on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share.

A number of other equities analysts have also recently weighed in on KMX. Evercore ISI reissued an “in-line” rating and issued a $52.00 price objective (down from $80.00) on shares of CarMax in a research report on Friday, September 26th. Wall Street Zen cut shares of CarMax from a “hold” rating to a “sell” rating in a research report on Friday, October 3rd. Truist Financial decreased their price objective on shares of CarMax from $74.00 to $47.00 and set a “hold” rating for the company in a research report on Friday, September 26th. Stephens cut shares of CarMax from an “overweight” rating to an “equal weight” rating and decreased their price objective for the company from $53.00 to $42.00 in a research report on Tuesday, October 7th. Finally, BNP Paribas Exane decreased their price objective on shares of CarMax from $52.00 to $35.00 and set an “underperform” rating for the company in a research report on Friday, September 26th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $51.75.

CarMax Stock Performance

NYSE:KMX opened at $44.73 on Monday. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.46 and a quick ratio of 1.06. The firm has a 50-day moving average of $53.97 and a two-hundred day moving average of $61.25. The stock has a market cap of $6.57 billion, a P/E ratio of 13.12, a PEG ratio of 0.82 and a beta of 1.27. CarMax has a 1-year low of $42.34 and a 1-year high of $91.25.

CarMax (NYSE:KMX) last posted its quarterly earnings data on Thursday, September 25th. The company reported $0.64 earnings per share for the quarter, missing analysts’ consensus estimates of $1.03 by ($0.39). The firm had revenue of $6.59 billion during the quarter, compared to analysts’ expectations of $7.07 billion. CarMax had a net margin of 1.98% and a return on equity of 8.51%. The business’s quarterly revenue was down 6.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.85 earnings per share.

Hedge Funds Weigh In On CarMax

Several large investors have recently modified their holdings of the stock. Mather Group LLC. bought a new position in shares of CarMax during the third quarter worth about $61,000. Eldred Rock Partners LLC raised its stake in CarMax by 41.3% during the third quarter. Eldred Rock Partners LLC now owns 207,986 shares of the company’s stock worth $9,332,000 after acquiring an additional 60,843 shares during the period. Davis Investment Partners LLC acquired a new stake in CarMax during the third quarter worth about $412,000. Allspring Global Investments Holdings LLC raised its stake in CarMax by 17.4% during the third quarter. Allspring Global Investments Holdings LLC now owns 8,016 shares of the company’s stock worth $369,000 after acquiring an additional 1,188 shares during the period. Finally, CenterStar Asset Management LLC acquired a new stake in CarMax during the third quarter worth about $202,000.

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.