Seaport Res Ptn Issues Positive Outlook for CarMax Earnings

Key Points

• Seaport Res Ptn raised its Q3 2026 earnings per share (EPS) forecast for CarMax from $0.82 to $0.83, while maintaining a "Hold" rating on the stock.
• CarMax reported Q2 earnings of $0.64 EPS, missing the consensus estimates of $1.03, and showed a revenue decline of 6.0% year-over-year.
• Various analysts have issued mixed reviews on CarMax with target prices ranging from $47.00 to $80.00, reflecting a consensus target price of $62.15.

CarMax, Inc. (NYSE:KMX - Free Report) - Analysts at Seaport Res Ptn increased their Q3 2026 EPS estimates for shares of CarMax in a research report issued on Sunday, September 28th. Seaport Res Ptn analyst G. Chin now forecasts that the company will post earnings per share of $0.83 for the quarter, up from their previous forecast of $0.82. Seaport Res Ptn has a "Hold" rating on the stock. The consensus estimate for CarMax's current full-year earnings is $3.23 per share. Seaport Res Ptn also issued estimates for CarMax's Q4 2026 earnings at $0.66 EPS and FY2026 earnings at $3.50 EPS.

A number of other research analysts also recently commented on KMX. Morgan Stanley started coverage on shares of CarMax in a research report on Tuesday, July 1st. They set an "overweight" rating and a $80.00 target price on the stock. Truist Financial reduced their target price on CarMax from $74.00 to $47.00 and set a "hold" rating on the stock in a research report on Friday, September 26th. Evercore ISI restated an "in-line" rating and set a $52.00 price target (down previously from $80.00) on shares of CarMax in a research note on Friday, September 26th. Needham & Company LLC lowered their price target on CarMax from $92.00 to $60.00 and set a "buy" rating for the company in a research report on Friday, September 26th. Finally, Stephens cut their price objective on CarMax from $74.00 to $53.00 and set an "overweight" rating on the stock in a report on Friday, September 26th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $62.15.

CarMax Trading Down 0.8%

KMX opened at $44.88 on Wednesday. The company has a market capitalization of $6.59 billion, a P/E ratio of 13.16, a PEG ratio of 0.82 and a beta of 1.35. The company has a quick ratio of 1.06, a current ratio of 2.46 and a debt-to-equity ratio of 2.87. CarMax has a 52 week low of $42.75 and a 52 week high of $91.25. The stock's fifty day moving average is $57.89 and its two-hundred day moving average is $64.42.

CarMax (NYSE:KMX - Get Free Report) last issued its earnings results on Thursday, September 25th. The company reported $0.64 EPS for the quarter, missing analysts' consensus estimates of $1.03 by ($0.39). The company had revenue of $6.59 billion during the quarter, compared to the consensus estimate of $7.07 billion. CarMax had a return on equity of 8.51% and a net margin of 1.98%.CarMax's revenue was down 6.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.85 earnings per share.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. GAMMA Investing LLC increased its stake in shares of CarMax by 8,675.6% in the 1st quarter. GAMMA Investing LLC now owns 515,830 shares of the company's stock valued at $40,193,000 after purchasing an additional 509,952 shares in the last quarter. Parallel Advisors LLC grew its holdings in CarMax by 38.4% in the first quarter. Parallel Advisors LLC now owns 937 shares of the company's stock valued at $73,000 after purchasing an additional 260 shares during the period. Rhumbline Advisers increased its position in shares of CarMax by 11.6% in the first quarter. Rhumbline Advisers now owns 326,651 shares of the company's stock valued at $25,453,000 after buying an additional 33,882 shares in the last quarter. Czech National Bank increased its position in shares of CarMax by 5.2% in the first quarter. Czech National Bank now owns 35,325 shares of the company's stock valued at $2,753,000 after buying an additional 1,734 shares in the last quarter. Finally, Merit Financial Group LLC raised its stake in shares of CarMax by 79.0% during the 1st quarter. Merit Financial Group LLC now owns 13,129 shares of the company's stock worth $1,023,000 after buying an additional 5,796 shares during the period.

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.

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