Zacks Research Has Pessimistic Outlook of CarMax Q1 Earnings

CarMax, Inc. (NYSE:KMX) – Equities researchers at Zacks Research reduced their Q1 2026 earnings estimates for CarMax in a research report issued on Wednesday, February 19th. Zacks Research analyst R. Department now expects that the company will post earnings of $1.25 per share for the quarter, down from their prior estimate of $1.28. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share. Zacks Research also issued estimates for CarMax’s Q2 2026 earnings at $0.98 EPS, Q3 2026 earnings at $0.81 EPS, FY2026 earnings at $3.78 EPS, Q2 2027 earnings at $1.00 EPS, Q3 2027 earnings at $1.16 EPS and FY2027 earnings at $4.36 EPS.

Other equities research analysts have also recently issued research reports about the stock. Royal Bank of Canada lifted their price target on shares of CarMax from $92.00 to $99.00 and gave the company an “overweight” rating in a research note on Thursday, December 19th. Evercore ISI upgraded shares of CarMax from an “in-line” rating to an “outperform” rating and lifted their target price for the company from $90.00 to $110.00 in a research report on Thursday, February 6th. Stephens began coverage on shares of CarMax in a research report on Thursday, December 5th. They set an “equal weight” rating and a $86.00 price target for the company. Truist Financial lifted their price objective on CarMax from $72.00 to $88.00 and gave the stock a “hold” rating in a report on Friday, December 20th. Finally, Needham & Company LLC increased their target price on CarMax from $98.00 to $101.00 and gave the company a “buy” rating in a report on Monday, February 3rd. Three investment analysts have rated the stock with a sell rating, five have issued a hold rating and seven have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $87.50.

CarMax Stock Down 0.0 %

Shares of KMX opened at $82.88 on Monday. The firm has a market cap of $12.75 billion, a P/E ratio of 28.09, a PEG ratio of 1.67 and a beta of 1.72. CarMax has a 12 month low of $65.83 and a 12 month high of $91.25. The stock’s 50 day moving average is $83.32 and its two-hundred day moving average is $80.25. The company has a current ratio of 2.30, a quick ratio of 0.55 and a debt-to-equity ratio of 2.92.

CarMax (NYSE:KMX) last announced its quarterly 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. The firm had revenue of $6.22 billion during the quarter, compared to analyst estimates of $6.05 billion. CarMax had a return on equity of 7.49% and a net margin of 1.77%. CarMax’s revenue for the quarter was up 1.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.52 EPS.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of KMX. First Hawaiian Bank acquired a new position in shares of CarMax in the 4th quarter worth approximately $273,000. World Investment Advisors LLC purchased a new position in shares of CarMax during the third quarter worth $6,942,000. Sumitomo Mitsui Trust Group Inc. boosted its position in shares of CarMax by 3.2% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 351,361 shares of the company’s stock worth $27,188,000 after buying an additional 10,898 shares during the period. HF Advisory Group LLC grew its stake in shares of CarMax by 12.6% in the fourth quarter. HF Advisory Group LLC now owns 28,793 shares of the company’s stock valued at $2,354,000 after buying an additional 3,222 shares in the last quarter. Finally, Merit Financial Group LLC purchased a new stake in shares of CarMax in the 4th quarter valued at $600,000.

Insider Activity

In other CarMax news, SVP Tyler Tuite sold 4,869 shares of CarMax 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 sale, the senior vice president now owns 227 shares in the company, valued at $19,199.66. The trade was a 95.55 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO William D. Nash sold 120,513 shares of the firm’s stock in a transaction dated Monday, December 23rd. The stock was sold at an average price of $83.24, for a total value of $10,031,502.12. Following the sale, the chief executive officer now directly owns 181,683 shares of the company’s stock, valued at $15,123,292.92. The trade was a 39.88 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 264,467 shares of company stock valued at $21,915,445. 1.66% of the stock is currently owned by insiders.

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.