Wedbush Reaffirms “Outperform” Rating for CarMax (NYSE:KMX)

by · The Markets Daily

Wedbush reissued their outperform rating on shares of CarMax (NYSE:KMX – Free Report) in a research note released on Tuesday morning, Benzinga reports. They currently have a $95.00 target price on the stock. Wedbush also issued estimates for CarMax’s Q2 2025 earnings at $0.86 EPS, Q3 2025 earnings at $0.62 EPS, Q4 2025 earnings at $0.60 EPS, FY2025 earnings at $3.06 EPS, Q1 2026 earnings at $1.28 EPS, Q2 2026 earnings at $1.01 EPS, Q3 2026 earnings at $0.74 EPS, Q4 2026 earnings at $0.60 EPS, FY2026 earnings at $3.64 EPS and FY2027 earnings at $4.45 EPS.

Several other research analysts also recently commented on KMX. Truist Financial boosted their target price on CarMax from $66.00 to $70.00 and gave the stock a hold rating in a report on Monday, June 24th. StockNews.com raised CarMax to a sell rating in a report on Friday, July 26th. Oppenheimer reaffirmed an outperform rating and set a $105.00 price objective on shares of CarMax in a report on Monday, June 24th. Needham & Company LLC reduced their price objective on CarMax from $91.00 to $87.00 and set a buy rating on the stock in a report on Monday, June 24th. Finally, Royal Bank of Canada upped their price objective on CarMax from $73.00 to $75.00 and gave the stock an outperform rating in a report on Monday, June 24th. Three equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and six have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of Hold and a consensus target price of $77.08.

Read Our Latest Report on KMX

CarMax Trading Up 0.2 %

KMX stock opened at $77.39 on Tuesday. CarMax has a 1-year low of $59.66 and a 1-year high of $88.22. The firm has a market cap of $12.08 billion, a P/E ratio of 30.23, a P/E/G ratio of 1.53 and a beta of 1.69. The business’s 50 day moving average is $80.41 and its 200-day moving average is $76.54. The company has a current ratio of 2.50, a quick ratio of 0.60 and a debt-to-equity ratio of 2.95.

CarMax (NYSE:KMX – Get Free Report) last announced its earnings results on Friday, June 21st. The company reported $0.97 EPS for the quarter, topping the consensus estimate of $0.94 by $0.03. The business had revenue of $7.11 billion for the quarter, compared to the consensus estimate of $7.16 billion. CarMax had a return on equity of 6.64% and a net margin of 1.55%. CarMax’s revenue was down 7.5% compared to the same quarter last year. During the same period in the previous year, the business earned $1.16 EPS. Equities analysts anticipate that CarMax will post 2.99 earnings per share for the current fiscal year.

Insider Buying and Selling at CarMax

In other CarMax news, SVP Jon G. Daniels sold 1,231 shares of the company’s stock in a transaction on Wednesday, June 26th. The shares were sold at an average price of $72.46, for a total transaction of $89,198.26. Following the completion of the sale, the senior vice president now owns 995 shares in the company, valued at approximately $72,097.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In related news, SVP Jon G. Daniels sold 1,231 shares of the company’s stock in a transaction on Wednesday, June 26th. The shares were sold at an average price of $72.46, for a total value of $89,198.26. Following the completion of the sale, the senior vice president now owns 995 shares in the company, valued at approximately $72,097.70. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO William D. Nash sold 120,000 shares of the company’s stock in a transaction on Thursday, July 11th. The shares were sold at an average price of $79.62, for a total transaction of $9,554,400.00. Following the completion of the sale, the chief executive officer now owns 181,683 shares of the company’s stock, valued at approximately $14,465,600.46. The disclosure for this sale can be found here. In the last 90 days, insiders sold 185,243 shares of company stock worth $14,893,042. Insiders own 1.66% of the company’s stock.

Hedge Funds Weigh In On CarMax

A number of large investors have recently added to or reduced their stakes in KMX. First Community Trust NA bought a new position in CarMax during the 2nd quarter worth about $29,000. Quarry LP increased its holdings in CarMax by 78.6% during the 2nd quarter. Quarry LP now owns 418 shares of the company’s stock worth $31,000 after purchasing an additional 184 shares in the last quarter. Blue Trust Inc. increased its holdings in CarMax by 134.1% during the 2nd quarter. Blue Trust Inc. now owns 501 shares of the company’s stock worth $37,000 after purchasing an additional 287 shares in the last quarter. Studio Investment Management LLC increased its holdings in CarMax by 176.7% during the 2nd quarter. Studio Investment Management LLC now owns 523 shares of the company’s stock worth $38,000 after purchasing an additional 334 shares in the last quarter. Finally, Headlands Technologies LLC bought a new position in CarMax during the 1st quarter worth about $55,000.

About CarMax

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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.

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