Wedbush Has Optimistic Outlook of CarMax Q2 Earnings

CarMax, Inc. (NYSE:KMX) – Analysts at Wedbush upped their Q2 2026 earnings per share estimates for shares of CarMax in a research report issued on Thursday, January 16th. Wedbush analyst S. Basham now expects that the company will earn $1.07 per share for the quarter, up from their previous forecast of $1.03. Wedbush has a “Outperform” rating and a $95.00 price objective on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.18 per share. Wedbush also issued estimates for CarMax’s Q3 2026 earnings at $0.92 EPS and FY2027 earnings at $4.70 EPS.

CarMax (NYSE:KMX) last issued its earnings results on Thursday, December 19th. The company reported $0.81 earnings per share for the quarter, beating the consensus estimate of $0.62 by $0.19. CarMax had a net margin of 1.77% and a return on equity of 7.49%. The firm had revenue of $6.22 billion for the quarter, compared to analysts’ expectations of $6.05 billion. During the same quarter last year, the company earned $0.52 earnings per share. The firm’s revenue was up 1.2% compared to the same quarter last year.

A number of other analysts also recently issued reports on the company. JPMorgan Chase & Co. lifted their price target on CarMax from $70.00 to $72.00 and gave the stock an “underweight” rating in a report on Friday, December 20th. Stephens initiated coverage on CarMax in a research note on Thursday, December 5th. They set an “equal weight” rating and a $86.00 target price for the company. BNP Paribas raised shares of CarMax to a “strong sell” rating in a report on Friday, September 27th. Royal Bank of Canada upped their target price on shares of CarMax from $92.00 to $99.00 and gave the company an “overweight” rating in a report on Thursday, December 19th. Finally, StockNews.com raised CarMax from a “sell” rating to a “hold” rating in a research report on Friday, December 20th. Three investment analysts have rated the stock with a sell rating, six have given a hold rating and six have issued a buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $85.17.

CarMax Price Performance

CarMax stock opened at $79.64 on Friday. 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 simple moving average of $82.01 and a 200-day simple moving average of $79.00. The stock has a market cap of $12.25 billion, a P/E ratio of 27.00, a price-to-earnings-growth ratio of 1.50 and a beta of 1.71. CarMax has a 12-month low of $65.83 and a 12-month high of $91.25.

Insider Buying and Selling

In related news, CEO William D. Nash sold 120,513 shares of the firm’s stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $83.24, for a total value of $10,031,502.12. Following the completion of the sale, the chief executive officer now owns 181,683 shares in the company, valued at $15,123,292.92. This trade represents a 39.88 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Mohammad Shamim sold 12,845 shares of the business’s stock in a transaction that occurred on Wednesday, January 8th. The stock was sold at an average price of $81.94, for a total value of $1,052,519.30. Following the sale, the executive vice president now directly owns 11,738 shares in the company, valued at $961,811.72. This trade represents a 52.25 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 241,589 shares of company stock valued at $20,042,746 over the last ninety days. Corporate insiders own 1.66% of the company’s stock.

Institutional Trading of CarMax

A number of institutional investors have recently bought and sold shares of KMX. Ballentine Partners LLC purchased a new stake in shares of CarMax in the 4th quarter worth about $217,000. Eldred Rock Partners LLC raised its position in CarMax by 0.4% during the fourth quarter. Eldred Rock Partners LLC now owns 140,652 shares of the company’s stock worth $11,517,000 after acquiring an additional 562 shares during the last quarter. Gilman Hill Asset Management LLC lifted its holdings in shares of CarMax by 2.6% in the fourth quarter. Gilman Hill Asset Management LLC now owns 32,362 shares of the company’s stock valued at $2,646,000 after purchasing an additional 815 shares in the last quarter. Client 1ST Advisory Group LLC acquired a new stake in shares of CarMax in the fourth quarter valued at approximately $234,000. Finally, HF Advisory Group LLC increased its stake in shares of CarMax by 12.6% during the 4th quarter. HF Advisory Group LLC now owns 28,793 shares of the company’s stock worth $2,354,000 after purchasing an additional 3,222 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.