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

CarMax, Inc. (NYSE:KMX - Free Report) - Equities research analysts at William Blair increased their Q1 2026 EPS estimates for shares of CarMax in a report released on Tuesday, May 20th. William Blair analyst S. Zackfia now forecasts that the company will post earnings of $1.27 per share for the quarter, up from their previous estimate of $1.17. The consensus estimate for CarMax's current full-year earnings is $3.23 per share. William Blair also issued estimates for CarMax's Q2 2026 earnings at $1.11 EPS, Q3 2026 earnings at $0.75 EPS, Q4 2026 earnings at $0.65 EPS and FY2027 earnings at $4.48 EPS.

A number of other analysts have also issued reports on the company. Stephens raised 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. Royal Bank of Canada reaffirmed an "underperform" rating on shares of CarMax in a research note on Monday, April 21st. JPMorgan Chase & Co. decreased their target price on CarMax from $72.00 to $65.00 and set an "underweight" rating on the stock in a research note on Thursday, March 27th. Evercore ISI lowered their target price on CarMax from $85.00 to $84.00 and set an "outperform" rating for the company in a report on Wednesday. Finally, Needham & Company LLC cut their price target on shares of CarMax from $101.00 to $92.00 and set a "buy" rating on the stock in a research note on Friday, April 11th. Three investment analysts have rated the stock with a sell rating, four have assigned a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, CarMax has a consensus rating of "Hold" and an average price target of $85.82.

CarMax Trading Up 0.4%

Shares of KMX traded up $0.28 during trading on Friday, reaching $63.24. 1,387,237 shares of the company traded hands, compared to its average volume of 2,185,457. The stock has a 50-day simple moving average of $69.08 and a 200-day simple moving average of $77.32. The company has a quick ratio of 0.55, a current ratio of 2.30 and a debt-to-equity ratio of 2.92. CarMax has a twelve month low of $61.34 and a twelve month high of $91.25. The stock has a market cap of $9.65 billion, a PE ratio of 21.44, a price-to-earnings-growth ratio of 1.67 and a beta of 1.45.

Institutional Trading of CarMax

Hedge funds and other institutional investors have recently made changes to their positions in the company. Zions Bancorporation National Association UT acquired a new position in shares of CarMax in the 1st quarter valued at $27,000. Cromwell Holdings LLC grew its position 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. Accent Capital Management LLC acquired a new position in CarMax in the first quarter valued at $34,000. Strengthening Families & Communities LLC raised its holdings in shares of CarMax by 93.1% in the first quarter. Strengthening Families & Communities LLC now owns 531 shares of the company's stock valued at $39,000 after buying an additional 256 shares during the last quarter. Finally, Ameriflex Group Inc. purchased a new stake in shares of CarMax in the fourth quarter valued at about $53,000.

Insider Activity at CarMax

In related news, Director Mitchell D. Steenrod purchased 1,300 shares of CarMax stock in a transaction that occurred on Thursday, April 24th. The stock was purchased at an average cost of $65.49 per share, with a total value of $85,137.00. Following the completion of the transaction, the director now directly owns 33,577 shares in the company, valued at approximately $2,198,957.73. The trade was a 4.03% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.70% of the stock is currently owned by corporate 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.