Wedbush Has Optimistic Outlook of CarMax Q2 Earnings

CarMax, Inc. (NYSE:KMX) – Wedbush boosted their Q2 2026 earnings estimates for shares of CarMax in a report issued on Thursday, January 16th. Wedbush analyst S. Basham now expects that the company will post earnings per share of $1.07 for the quarter, up from their previous estimate of $1.03. Wedbush has a “Outperform” rating and a $95.00 price objective on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.18 per share. Wedbush also issued estimates for CarMax’s Q3 2026 earnings at $0.92 EPS and FY2027 earnings at $4.70 EPS.

CarMax (NYSE:KMX) last announced its earnings results on Thursday, December 19th. The company reported $0.81 EPS for the quarter, topping the consensus estimate of $0.62 by $0.19. The firm had revenue of $6.22 billion for the quarter, compared to analysts’ expectations of $6.05 billion. CarMax had a return on equity of 7.49% and a net margin of 1.77%. The firm’s quarterly revenue was up 1.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.52 earnings per share.

Other research analysts have also issued reports about the company. Truist Financial lifted their target price on CarMax from $72.00 to $88.00 and gave the stock a “hold” rating in a report on Friday, December 20th. Royal Bank of Canada lifted their price objective on shares of CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a research note on Thursday, December 19th. Needham & Company LLC increased their target price on shares of CarMax from $90.00 to $98.00 and gave the company a “buy” rating in a research note on Friday, December 20th. JPMorgan Chase & Co. lifted their price target on shares of CarMax from $70.00 to $72.00 and gave the stock an “underweight” rating in a research report on Friday, December 20th. Finally, BNP Paribas upgraded CarMax to a “strong sell” rating in a research report on Friday, September 27th. Three research analysts have rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $85.17.

CarMax Stock Down 0.9 %

Shares of KMX stock opened at $78.96 on Friday. The company has a debt-to-equity ratio of 2.92, a quick ratio of 0.55 and a current ratio of 2.30. The stock has a market cap of $12.14 billion, a PE ratio of 26.77, a price-to-earnings-growth ratio of 1.50 and a beta of 1.71. The business’s fifty day moving average is $82.07 and its 200-day moving average is $79.10. CarMax has a 1 year low of $65.83 and a 1 year high of $91.25.

Insider Activity

In other CarMax news, EVP James Lyski sold 57,986 shares of the stock in a transaction that occurred on Thursday, January 2nd. The shares were sold at an average price of $81.35, for a total value of $4,717,161.10. Following the completion of the sale, the executive vice president now owns 22,803 shares in the company, valued at $1,855,024.05. This represents a 71.77 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO William D. Nash sold 120,513 shares of CarMax stock in a transaction on Monday, December 23rd. The shares were sold at an average price of $83.24, for a total transaction of $10,031,502.12. Following the sale, the chief executive officer now directly owns 181,683 shares of the company’s stock, valued at $15,123,292.92. This trade represents a 39.88 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 259,598 shares of company stock worth $21,503,625. 1.66% of the stock is owned by corporate insiders.

Institutional Trading of CarMax

Hedge funds and other institutional investors have recently modified their holdings of the company. True North Advisors LLC increased its position in CarMax by 0.5% in the 4th quarter. True North Advisors LLC now owns 48,662 shares of the company’s stock worth $3,979,000 after purchasing an additional 225 shares during the last quarter. Dakota Wealth Management grew its stake in shares of CarMax by 1.5% in the 4th quarter. Dakota Wealth Management now owns 14,720 shares of the company’s stock valued at $1,204,000 after buying an additional 215 shares in the last quarter. Ballentine Partners LLC acquired a new position in CarMax in the fourth quarter worth approximately $217,000. Eldred Rock Partners LLC raised its position in CarMax by 0.4% during the fourth quarter. Eldred Rock Partners LLC now owns 140,652 shares of the company’s stock valued at $11,517,000 after acquiring an additional 562 shares in the last quarter. Finally, Gilman Hill Asset Management LLC lifted its stake in CarMax by 2.6% in the fourth quarter. Gilman Hill Asset Management LLC now owns 32,362 shares of the company’s stock valued at $2,646,000 after acquiring an additional 815 shares during the last quarter.

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.