William Blair Has Pessimistic Outlook of CarMax Q1 Earnings

CarMax, Inc. (NYSE:KMX) – Analysts at William Blair reduced their Q1 2026 EPS estimates for CarMax in a research note issued to investors on Thursday, April 10th. William Blair analyst S. Zackfia now anticipates that the company will post earnings of $1.17 per share for the quarter, down from their prior forecast of $1.23. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share. William Blair also issued estimates for CarMax’s Q3 2026 earnings at $0.69 EPS, Q4 2026 earnings at $0.90 EPS and FY2027 earnings at $4.52 EPS.

KMX has been the topic of several other research reports. Needham & Company LLC decreased their target price on CarMax from $101.00 to $92.00 and set a “buy” rating on the stock in a research report on Friday. Stephens raised shares of CarMax from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $86.00 to $90.00 in a research note on Wednesday, March 26th. Truist Financial increased their target price on shares of CarMax from $72.00 to $88.00 and gave the company a “hold” rating in a research report on Friday, December 20th. Wedbush decreased their price target on shares of CarMax from $100.00 to $90.00 and set an “outperform” rating on the stock in a research note on Friday. Finally, JPMorgan Chase & Co. dropped their price objective on shares of CarMax from $72.00 to $65.00 and set an “underweight” rating for the company in a research note on Thursday, March 27th. Three equities research analysts have rated the stock with a sell rating, three have given a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat, CarMax currently has an average rating of “Hold” and a consensus price target of $87.73.

CarMax Trading Down 1.3 %

KMX stock opened at $67.44 on Monday. CarMax has a 12-month low of $63.23 and a 12-month high of $91.25. The business’s 50-day moving average is $78.28 and its 200 day moving average is $79.10. The company has a current ratio of 2.30, a quick ratio of 0.55 and a debt-to-equity ratio of 2.92. The stock has a market cap of $10.37 billion, a price-to-earnings ratio of 22.86, a PEG ratio of 1.67 and a beta of 1.58.

Insider Activity at CarMax

In other news, SVP Tyler Tuite sold 4,869 shares of the business’s stock in a transaction that occurred on Tuesday, January 28th. The shares were sold at an average price of $84.58, for a total value of $411,820.02. Following the sale, the senior vice president now directly 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 legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Jill A. Livesay sold 13,009 shares of the company’s stock in a transaction that occurred on Wednesday, January 15th. The stock was sold at an average price of $81.00, for a total transaction of $1,053,729.00. Following the completion of the transaction, the vice president now owns 9,448 shares in the company, valued at approximately $765,288. This represents a 57.93 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 22,878 shares of company stock worth $1,872,699. Insiders own 1.66% of the company’s stock.

Institutional Trading of CarMax

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Lakewood Asset Management LLC raised its holdings in shares of CarMax by 0.6% in the fourth quarter. Lakewood Asset Management LLC now owns 21,742 shares of the company’s stock valued at $1,778,000 after buying an additional 135 shares during the last quarter. Wilmington Savings Fund Society FSB raised its stake in CarMax by 3.1% during the 4th quarter. Wilmington Savings Fund Society FSB now owns 4,682 shares of the company’s stock valued at $383,000 after acquiring an additional 141 shares during the last quarter. Timber Creek Capital Management LLC lifted its position in CarMax by 0.3% during the 4th quarter. Timber Creek Capital Management LLC now owns 57,601 shares of the company’s stock worth $4,709,000 after acquiring an additional 145 shares during the period. Chemistry Wealth Management LLC increased its holdings in shares of CarMax by 1.4% in the fourth quarter. Chemistry Wealth Management LLC now owns 12,218 shares of the company’s stock valued at $999,000 after purchasing an additional 164 shares during the period. Finally, Cypress Wealth Services LLC raised its stake in shares of CarMax by 5.2% during the fourth quarter. Cypress Wealth Services LLC now owns 3,614 shares of the company’s stock worth $295,000 after purchasing an additional 179 shares during the last quarter.

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.