William Blair Issues Pessimistic Outlook for CarMax Earnings

CarMax, Inc. (NYSE:KMX) – William Blair reduced their Q1 2026 EPS estimates for CarMax in a research report issued to clients and investors on Monday, June 9th. William Blair analyst S. Zackfia now anticipates that the company will earn $1.22 per share for the quarter, down from their previous estimate of $1.27. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share. William Blair also issued estimates for CarMax’s Q4 2026 earnings at $0.66 EPS.

Several other equities analysts also recently weighed in on the company. Royal Bank of Canada reaffirmed an “underperform” rating on shares of CarMax in a research note on Monday, April 21st. Evercore ISI dropped their price target on CarMax from $85.00 to $84.00 and set an “outperform” rating for the company in a research report on Wednesday, May 28th. Needham & Company LLC decreased their price objective on shares of CarMax from $101.00 to $92.00 and set a “buy” rating on the stock in a research report on Friday, April 11th. JPMorgan Chase & Co. lowered their price objective on shares of CarMax from $72.00 to $65.00 and set an “underweight” rating on the stock in a research note on Thursday, March 27th. Finally, Wedbush restated an “outperform” rating and set a $90.00 target price on shares of CarMax in a report on Monday, May 19th. Three research analysts have rated the stock with a sell rating, four have issued a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, CarMax has a consensus rating of “Hold” and a consensus target price of $85.82.

CarMax Price Performance

Shares of NYSE:KMX opened at $66.07 on Thursday. The firm has a market capitalization of $10.09 billion, a price-to-earnings ratio of 22.40, a price-to-earnings-growth ratio of 1.67 and a beta of 1.38. 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 $66.58 and its 200-day simple moving average is $76.25. CarMax has a 12 month low of $61.34 and a 12 month high of $91.25.

Institutional Trading of CarMax

A number of hedge funds have recently bought and sold shares of the company. Sequoia Financial Advisors LLC raised its holdings in CarMax by 10.6% in the 4th quarter. Sequoia Financial Advisors LLC now owns 3,191 shares of the company’s stock valued at $261,000 after acquiring an additional 307 shares during the last quarter. Jones Financial Companies Lllp grew its position in shares of CarMax by 36.6% in the fourth quarter. Jones Financial Companies Lllp now owns 5,211 shares of the company’s stock valued at $426,000 after purchasing an additional 1,396 shares during the period. Principal Financial Group Inc. increased its stake in CarMax by 3.4% in the fourth quarter. Principal Financial Group Inc. now owns 8,591,297 shares of the company’s stock valued at $702,425,000 after purchasing an additional 282,519 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. increased its stake in CarMax by 0.9% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 354,380 shares of the company’s stock valued at $28,974,000 after purchasing an additional 3,019 shares during the last quarter. Finally, Essex Financial Services Inc. purchased a new position in CarMax during the fourth quarter worth about $235,000.

Insider Buying and Selling

In other news, Director Mitchell D. Steenrod acquired 1,300 shares of the business’s stock in a transaction dated Thursday, April 24th. The stock was acquired at an average price 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. This represents a 4.03% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.70% of the stock is currently owned by company 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.