Wedbush Weighs in on CarMax's Q1 Earnings (NYSE:KMX)

CarMax, Inc. (NYSE:KMX - Free Report) - Equities research analysts at Wedbush issued their Q1 2026 EPS estimates for CarMax in a report issued on Monday, May 19th. Wedbush analyst S. Devitt forecasts that the company will post earnings of $1.23 per share for the quarter. 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 $3.23 per share. Wedbush also issued estimates for CarMax's Q2 2026 earnings at $1.09 EPS, Q3 2026 earnings at $0.87 EPS, Q4 2026 earnings at $0.73 EPS, FY2026 earnings at $3.92 EPS and FY2027 earnings at $4.72 EPS.

A number of other brokerages have also recently commented on KMX. JPMorgan Chase & Co. decreased their price target on CarMax from $72.00 to $65.00 and set an "underweight" rating on the stock in a research note on Thursday, March 27th. Cfra Research upgraded shares of CarMax to a "strong-buy" rating in a report on Thursday, April 10th. Needham & Company LLC lowered their price target on shares of CarMax from $101.00 to $92.00 and set a "buy" rating for the company in a report on Friday, April 11th. Stephens raised shares of CarMax from an "equal weight" rating to an "overweight" rating and increased their price target for the company from $86.00 to $90.00 in a research report on Wednesday, March 26th. Finally, Wall Street Zen upgraded shares of CarMax from a "sell" rating to a "hold" rating in a research report on Wednesday, May 7th. Three investment analysts have rated the stock with a sell rating, four have assigned a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, CarMax presently has a consensus rating of "Hold" and an average target price of $87.73.

CarMax Trading Down 1.4%

Shares of KMX traded down $0.91 during trading hours on Wednesday, hitting $62.32. The company had a trading volume of 3,156,872 shares, compared to its average volume of 2,180,323. CarMax has a 52-week low of $61.48 and a 52-week high of $91.25. The company has a quick ratio of 0.55, a current ratio of 2.30 and a debt-to-equity ratio of 2.92. The stock's 50 day moving average price is $69.43 and its 200 day moving average price is $77.50. The firm has a market cap of $9.51 billion, a P/E ratio of 21.12, a P/E/G ratio of 1.67 and a beta of 1.45.

Insider Transactions at CarMax

In other news, Director Mitchell D. Steenrod bought 1,300 shares of the firm's stock in a transaction dated Thursday, April 24th. The stock was purchased at an average price of $65.49 per share, with a total value of $85,137.00. Following the transaction, the director now owns 33,577 shares of the company's stock, valued at approximately $2,198,957.73. The trade was a 4.03% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 1.70% of the company's stock.

Institutional Investors Weigh In On CarMax

Several hedge funds and other institutional investors have recently added to or reduced their stakes in KMX. Zions Bancorporation National Association UT purchased a new position in CarMax during the first quarter valued at $27,000. Accent Capital Management LLC bought a new position in shares of CarMax in the 1st quarter worth about $34,000. Cromwell Holdings LLC increased its stake in shares of CarMax by 104.8% in the 4th quarter. Cromwell Holdings LLC now owns 424 shares of the company's stock worth $35,000 after acquiring an additional 217 shares in the last quarter. Strengthening Families & Communities LLC lifted its position in CarMax by 93.1% during the 1st quarter. Strengthening Families & Communities LLC now owns 531 shares of the company's stock valued at $39,000 after acquiring an additional 256 shares during the period. Finally, Allworth Financial LP boosted its stake in CarMax by 62.7% during the fourth quarter. Allworth Financial LP now owns 646 shares of the company's stock worth $51,000 after acquiring an additional 249 shares in 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.