Zacks Research Comments on CarMax's Q1 Earnings (NYSE:KMX)

CarMax, Inc. (NYSE:KMX - Free Report) - Investment analysts at Zacks Research dropped their Q1 2026 earnings estimates for shares of CarMax in a report released on Thursday, April 24th. Zacks Research analyst R. Department now expects that the company will post earnings of $1.21 per share for the quarter, down from their previous forecast of $1.25. The consensus estimate for CarMax's current full-year earnings is $3.23 per share. Zacks Research also issued estimates for CarMax's Q3 2026 earnings at $0.72 EPS, Q4 2026 earnings at $0.69 EPS, FY2026 earnings at $3.60 EPS, Q1 2027 earnings at $1.33 EPS, Q4 2027 earnings at $0.86 EPS and FY2028 earnings at $4.55 EPS.

KMX has been the subject of several other reports. JPMorgan Chase & Co. dropped their price objective on CarMax from $72.00 to $65.00 and set an "underweight" rating for the company in a report on Thursday, March 27th. Evercore ISI reduced their price objective on shares of CarMax from $107.00 to $105.00 and set an "outperform" rating on the stock in a research note on Tuesday, March 11th. Stephens upgraded shares of CarMax from an "equal weight" rating to an "overweight" rating and boosted their target price for the company from $86.00 to $90.00 in a research report on Wednesday, March 26th. Cfra Research upgraded shares of CarMax to a "strong-buy" rating in a research report on Thursday, April 10th. Finally, Needham & Company LLC cut their target price on CarMax from $101.00 to $92.00 and set a "buy" rating for the company in a research note on Friday, April 11th. Four equities research analysts have rated the stock with a sell rating, three have issued a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat.com, CarMax presently has an average rating of "Hold" and a consensus target price of $87.73.

CarMax Price Performance

Shares of NYSE KMX traded down $0.20 during midday trading on Monday, reaching $64.66. The company's stock had a trading volume of 3,703,872 shares, compared to its average volume of 2,106,071. 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 company has a market cap of $9.87 billion, a P/E ratio of 21.92, a P/E/G ratio of 1.67 and a beta of 1.58. The business's 50 day moving average price is $73.41 and its two-hundred day moving average price is $78.40. CarMax has a fifty-two week low of $61.67 and a fifty-two week high of $91.25.

Institutional Investors Weigh In On CarMax

Institutional investors and hedge funds have recently made changes to their positions in the stock. Cromwell Holdings LLC raised its holdings in CarMax by 104.8% during the 4th quarter. Cromwell Holdings LLC now owns 424 shares of the company's stock worth $35,000 after purchasing an additional 217 shares during the last quarter. Allworth Financial LP raised 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 buying an additional 249 shares during the last quarter. Ameriflex Group Inc. acquired a new position in CarMax in the fourth quarter valued at $53,000. ST Germain D J Co. Inc. acquired a new position in CarMax in the fourth quarter valued at $58,000. Finally, Colonial Trust Co SC boosted its position in CarMax by 2,310.0% during the fourth quarter. Colonial Trust Co SC now owns 723 shares of the company's stock valued at $59,000 after acquiring an additional 693 shares during the last quarter.

Insider Transactions at CarMax

In related news, Director Mitchell D. Steenrod bought 1,300 shares of the stock in a transaction that occurred on Thursday, April 24th. The stock was acquired at an average cost of $65.49 per share, with a total value of $85,137.00. Following the transaction, the director now directly owns 33,577 shares in the company, valued at approximately $2,198,957.73. This trade represents a 4.03 % increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 1.66% of the stock is owned by company insiders.

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.