Wedbush Issues Optimistic Outlook for CarMax Earnings

CarMax, Inc. (NYSE:KMX) – Wedbush boosted their Q4 2025 earnings per share estimates for CarMax in a note issued to investors on Wednesday, February 19th. Wedbush analyst S. Basham now expects that the company will earn $0.70 per share for the quarter, up from their previous estimate of $0.54. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share.

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

A number of other brokerages also recently issued reports on KMX. Needham & Company LLC increased their price target on CarMax from $98.00 to $101.00 and gave the stock a “buy” rating in a research report on Monday, February 3rd. StockNews.com raised CarMax from a “sell” rating to a “hold” rating in a research report on Friday, December 20th. Evercore ISI raised CarMax from an “in-line” rating to an “outperform” rating and increased their price target for the stock from $90.00 to $110.00 in a research report on Thursday, February 6th. Royal Bank of Canada increased their price target on CarMax from $92.00 to $99.00 and gave the stock an “overweight” rating in a research report on Thursday, December 19th. Finally, 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. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $87.50.

CarMax Trading Down 2.0 %

Shares of NYSE:KMX opened at $85.68 on Friday. The company has a market capitalization of $13.18 billion, a P/E ratio of 29.04, a P/E/G ratio of 1.71 and a beta of 1.72. CarMax has a 1 year low of $65.83 and a 1 year high of $91.25. 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 business’s 50 day simple moving average is $83.46 and its 200 day simple moving average is $80.02.

Institutional Trading of CarMax

Large investors have recently bought and sold shares of the business. Catalyst Capital Advisors LLC acquired a new stake in CarMax during the 3rd quarter worth about $32,000. True Wealth Design LLC grew its holdings in CarMax by 4,844.4% during the 3rd quarter. True Wealth Design LLC now owns 445 shares of the company’s stock worth $34,000 after acquiring an additional 436 shares during the period. Cromwell Holdings LLC grew 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 acquiring an additional 217 shares during the period. Allworth Financial LP grew its holdings in CarMax by 62.7% during the 4th quarter. Allworth Financial LP now owns 646 shares of the company’s stock worth $51,000 after acquiring an additional 249 shares during the period. Finally, Larson Financial Group LLC grew its holdings in CarMax by 91.9% during the 3rd quarter. Larson Financial Group LLC now owns 737 shares of the company’s stock worth $57,000 after acquiring an additional 353 shares during the period.

Insider Activity

In related news, CEO William D. Nash sold 120,513 shares of the firm’s stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $83.24, for a total transaction of $10,031,502.12. Following the completion of the transaction, the chief executive officer now directly owns 181,683 shares of the company’s stock, valued at $15,123,292.92. This trade represents a 39.88 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Tyler Tuite sold 4,869 shares of the firm’s stock in a transaction on Tuesday, January 28th. The stock was sold at an average price of $84.58, for a total value of $411,820.02. Following the transaction, the senior vice president now directly owns 227 shares of the company’s stock, valued at approximately $19,199.66. This represents a 95.55 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 264,467 shares of company stock worth $21,915,445. Insiders own 1.66% of the company’s stock.

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.