Wedbush Equities Analysts Cut Earnings Estimates for CarMax

Key Points

• Wedbush analysts have reduced their Q4 2026 earnings estimate for CarMax from $0.71 to $0.68 per share, maintaining a "Neutral" rating with a price target of $54.00.
• CarMax's latest quarterly earnings showed a net margin of 1.98% and a revenue decline of 6.0% compared to the same quarter last year, reporting $6.59 billion against analyst expectations of $7.07 billion.
• Recent changes by analysts include numerous target price reductions, with Stephens and Truist Financial lowering targets to $53.00 and $47.00, respectively.

CarMax, Inc. (NYSE:KMX - Free Report) - Analysts at Wedbush cut their Q4 2026 earnings estimates for shares of CarMax in a research report issued on Thursday, September 25th. Wedbush analyst S. Devitt now expects that the company will earn $0.68 per share for the quarter, down from their previous estimate of $0.71. 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. Wedbush also issued estimates for CarMax's FY2027 earnings at $4.26 EPS.

KMX has been the topic of several other research reports. Benchmark started coverage on shares of CarMax in a research note on Thursday, July 17th. They set a "buy" rating and a $75.00 target price on the stock. Oppenheimer restated a "market perform" rating on shares of CarMax in a research note on Friday. Stephens lowered their target price on shares of CarMax from $74.00 to $53.00 and set an "overweight" rating on the stock in a research note on Friday. Truist Financial lowered their target price on shares of CarMax from $74.00 to $47.00 and set a "hold" rating on the stock in a research note on Friday. Finally, Mizuho lowered their target price on shares of CarMax from $80.00 to $78.00 and set a "neutral" rating on the stock in a research note on Thursday, July 3rd. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $63.31.

CarMax Price Performance

KMX opened at $44.86 on Monday. The company has a debt-to-equity ratio of 2.87, a quick ratio of 1.06 and a current ratio of 2.46. The stock has a market capitalization of $6.73 billion, a P/E ratio of 13.16, a P/E/G ratio of 0.76 and a beta of 1.35. The company's 50-day simple moving average is $58.59 and its two-hundred day simple moving average is $64.72. CarMax has a 52-week low of $42.75 and a 52-week high of $91.25.

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

Insider Buying and Selling at CarMax

In other news, EVP Jon G. Daniels sold 1,540 shares of the stock in a transaction that occurred on Wednesday, July 2nd. The shares were sold at an average price of $70.64, for a total value of $108,785.60. Following the transaction, the executive vice president owned 2,779 shares in the company, valued at $196,308.56. This represents a 35.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On CarMax

A number of institutional investors and hedge funds have recently added to or reduced their stakes in KMX. Norges Bank bought a new stake in CarMax during the 2nd quarter worth approximately $208,144,000. AQR Capital Management LLC raised its stake in CarMax by 195.3% during the 2nd quarter. AQR Capital Management LLC now owns 4,457,340 shares of the company's stock worth $298,107,000 after acquiring an additional 2,947,996 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in CarMax by 1,410.5% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 2,028,718 shares of the company's stock worth $136,350,000 after acquiring an additional 1,894,408 shares during the period. The Manufacturers Life Insurance Company raised its stake in CarMax by 795.5% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,846,406 shares of the company's stock worth $124,097,000 after acquiring an additional 1,640,219 shares during the period. Finally, Fuller & Thaler Asset Management Inc. raised its stake in CarMax by 626.1% during the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 903,024 shares of the company's stock worth $70,364,000 after acquiring an additional 778,652 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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