William Blair Has Bullish Forecast for CarMax Q1 Earnings

CarMax, Inc. (NYSE:KMX - Free Report) - Investment analysts at William Blair increased their Q1 2026 earnings estimates for shares of CarMax in a note issued to investors on Tuesday, May 20th. William Blair analyst S. Zackfia now forecasts that the company will post earnings per share of $1.27 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.

Several other analysts have also weighed in on KMX. Needham & Company LLC lowered their target price on CarMax from $101.00 to $92.00 and set a "buy" rating on the stock in a report on Friday, April 11th. Wall Street Zen raised shares of CarMax from a "sell" rating to a "hold" rating in a research report on Wednesday, May 7th. Cfra Research raised shares of CarMax to a "strong-buy" rating in a research report on Thursday, April 10th. JPMorgan Chase & Co. decreased their price target on CarMax from $72.00 to $65.00 and set an "underweight" rating for the company in a research note on Thursday, March 27th. Finally, Wedbush reissued an "outperform" rating and issued a $90.00 price target on shares of CarMax in a report on Monday, May 19th. Three investment analysts have rated the stock with a sell rating, four have issued a hold rating, seven have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $87.73.

CarMax Stock Performance

NYSE KMX traded up $0.68 on Friday, hitting $62.95. 2,775,726 shares of the company's stock were exchanged, compared to its average volume of 2,188,490. The firm's 50-day moving average price is $69.26 and its two-hundred day moving average price is $77.42. The company has a debt-to-equity ratio of 2.92, a current ratio of 2.30 and a quick ratio of 0.55. The firm has a market cap of $9.61 billion, a price-to-earnings ratio of 21.34, a P/E/G ratio of 1.67 and a beta of 1.45. CarMax has a fifty-two week low of $61.24 and a fifty-two week high of $91.25.

Insiders Place Their Bets

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

Hedge Funds Weigh In On CarMax

Several hedge funds and other institutional investors have recently added to or reduced their stakes in KMX. Acadian Asset Management LLC acquired a new stake in shares of CarMax in the first quarter worth $727,000. Intech Investment Management LLC grew its holdings in CarMax by 61.7% during the 1st quarter. Intech Investment Management LLC now owns 19,143 shares of the company's stock worth $1,492,000 after acquiring an additional 7,307 shares during the last quarter. Glenview Trust co increased its stake in shares of CarMax by 36.0% in the 1st quarter. Glenview Trust co now owns 3,876 shares of the company's stock valued at $302,000 after buying an additional 1,026 shares during the period. Woodline Partners LP grew its holdings in CarMax by 1,006.4% during the 1st quarter. Woodline Partners LP now owns 102,944 shares of the company's stock worth $8,021,000 after acquiring an additional 93,640 shares during the period. Finally, Empowered Funds LLC grew its position in shares of CarMax by 12.5% during the 1st quarter. Empowered Funds LLC now owns 5,273 shares of the company's stock worth $411,000 after buying an additional 585 shares during the period.

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.