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

CarMax, Inc. (NYSE:KMX) – Equities researchers at Wedbush lowered their Q2 2025 earnings per share estimates for CarMax in a research report issued on Monday, June 24th. Wedbush analyst S. Basham now anticipates that the company will earn $0.97 per share for the quarter, down from their previous forecast of $1.06. 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 Q4 2025 earnings at $0.70 EPS.

CarMax (NYSE:KMX) last announced its earnings results on Friday, June 21st. The company reported $0.97 earnings per share for the quarter, beating analysts’ consensus estimates of $0.94 by $0.03. The company 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%. The firm’s quarterly revenue was down 7.5% compared to the same quarter last year. During the same period last year, the company posted $1.16 earnings per share.

KMX has been the topic of a number of other research reports. Bank of America raised their target price on CarMax from $44.00 to $50.00 and gave the stock an “underperform” rating in a report on Thursday, February 29th. Truist Financial raised their target price on CarMax from $66.00 to $70.00 and gave the stock a “hold” rating in a report on Monday. Needham & Company LLC reduced their target price on CarMax from $91.00 to $87.00 and set a “buy” rating on the stock in a report on Monday. Mizuho reduced their target price on CarMax from $75.00 to $72.00 and set a “neutral” rating on the stock in a report on Tuesday, June 18th. Finally, Robert W. Baird cut their price objective on CarMax from $88.00 to $84.00 and set an “outperform” rating on the stock in a report on Friday, April 12th. Three 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 company’s stock. According to data from MarketBeat, CarMax has an average rating of “Hold” and an average target price of $75.50.

CarMax Price Performance

CarMax stock opened at $72.73 on Wednesday. The business’s 50-day simple moving average is $70.45 and its 200 day simple moving average is $73.95. The stock has a market cap of $11.45 billion, a price-to-earnings ratio of 28.41, a P/E/G ratio of 1.41 and a beta of 1.69. CarMax has a 12-month low of $59.66 and a 12-month high of $88.22. The company has a quick ratio of 0.60, a current ratio of 2.50 and a debt-to-equity ratio of 2.95.

Institutional Investors Weigh In On CarMax

Institutional investors and hedge funds have recently made changes to their positions in the stock. DekaBank Deutsche Girozentrale boosted its position in shares of CarMax by 1.6% during 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 in the last quarter. Cetera Advisors LLC boosted its holdings in CarMax by 48.7% in the first quarter. Cetera Advisors LLC now owns 9,178 shares of the company’s stock worth $799,000 after acquiring an additional 3,004 shares in the last quarter. Cetera Investment Advisers boosted its holdings in CarMax by 942.3% in the first 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% in the first quarter. Atria Investments Inc now owns 41,221 shares of the company’s stock worth $3,591,000 after acquiring an additional 4,286 shares in the last quarter. Finally, Swedbank AB bought a new position in CarMax in the first quarter worth approximately $1,406,000.

Insiders Place Their Bets

In other CarMax news, EVP Diane L. Cafritz sold 15,356 shares of the company’s stock in a transaction dated Tuesday, April 23rd. The stock was sold at an average price of $69.53, for a total value of $1,067,702.68. Following the completion of the transaction, the executive vice president now owns 6,977 shares of the company’s stock, valued at approximately $485,110.81. The sale was disclosed in a legal filing 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.