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

CarMax, Inc. (NYSE:KMX - Free Report) - Stock analysts at William Blair dropped their Q1 2026 earnings per share estimates for shares of CarMax in a research note issued on Monday, June 9th. William Blair analyst S. Zackfia now forecasts that the company will post earnings of $1.22 per share for the quarter, down from their previous estimate of $1.27. The consensus estimate for CarMax's current full-year earnings is $3.23 per share. William Blair also issued estimates for CarMax's Q4 2026 earnings at $0.66 EPS.

A number of other analysts have also commented on the company. Cfra Research raised CarMax to a "strong-buy" rating in a report on Thursday, April 10th. JPMorgan Chase & Co. decreased 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. Needham & Company LLC decreased their price objective on CarMax from $101.00 to $92.00 and set a "buy" rating for the company in a report on Friday, April 11th. Evercore ISI decreased their price objective on CarMax from $85.00 to $84.00 and set an "outperform" rating for the company in a report on Wednesday, May 28th. Finally, Royal Bank of Canada reaffirmed an "underperform" rating on shares of CarMax in a report on Monday, April 21st. Three equities research analysts have rated the stock with a sell rating, four have given a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $85.82.

CarMax Stock Down 2.6%

CarMax stock traded down $1.76 during midday trading on Thursday, reaching $66.07. The stock had a trading volume of 2,498,023 shares, compared to its average volume of 2,285,054. The company has a current ratio of 2.30, a quick ratio of 0.55 and a debt-to-equity ratio of 2.92. The company has a fifty day moving average price of $66.73 and a two-hundred day moving average price of $76.38. The company has a market capitalization of $10.09 billion, a P/E ratio of 22.40, a PEG ratio of 1.67 and a beta of 1.38. CarMax has a 12 month low of $61.34 and a 12 month high of $91.25.

Insider Buying and Selling

In other news, Director Mitchell D. Steenrod acquired 1,300 shares of the business's stock in a transaction dated Thursday, April 24th. The stock was purchased at an average cost of $65.49 per share, for a total transaction of $85,137.00. Following the acquisition, the director now owns 33,577 shares of the company's stock, valued at $2,198,957.73. This trade represents a 4.03% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 1.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On CarMax

A number of hedge funds and other institutional investors have recently modified their holdings of KMX. Zions Bancorporation National Association UT bought a new stake in shares of CarMax in the 1st quarter valued at about $27,000. Accent Capital Management LLC bought a new stake in shares of CarMax in the 1st quarter valued at about $34,000. Cromwell Holdings LLC lifted 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 valued at $35,000 after acquiring an additional 217 shares during the last quarter. Strengthening Families & Communities LLC lifted its stake in shares of CarMax by 93.1% in 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 last quarter. Finally, Allworth Financial LP raised its position in CarMax by 62.7% during the 4th quarter. Allworth Financial LP now owns 646 shares of the company's stock valued at $51,000 after purchasing an additional 249 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.