Wedbush Issues Optimistic Estimate for CarMax Earnings

CarMax, Inc. (NYSE:KMX) – Research analysts at Wedbush lifted their FY2027 earnings per share (EPS) estimates for CarMax in a research report issued on Wednesday, April 16th. Wedbush analyst S. Basham now forecasts that the company will earn $4.72 per share for the year, up from their previous forecast of $4.67. Wedbush currently has a “Outperform” rating and a $90.00 target price on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share.

KMX has been the subject of several other reports. Evercore ISI reduced their target price on CarMax from $107.00 to $105.00 and set an “outperform” rating for the company in a research report on Tuesday, March 11th. Needham & Company LLC reduced their target price on CarMax from $101.00 to $92.00 and set a “buy” rating on the stock in a research note on Friday, April 11th. JPMorgan Chase & Co. cut their price objective on CarMax from $72.00 to $65.00 and set an “underweight” rating for the company in a report on Thursday, March 27th. Truist Financial increased their price target on shares of CarMax from $72.00 to $88.00 and gave the company a “hold” rating in a research report on Friday, December 20th. Finally, StockNews.com downgraded CarMax from a “hold” rating to a “sell” rating in a report on Friday, April 11th. Three investment analysts have rated the stock with a sell rating, three have given a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $87.73.

CarMax Stock Performance

NYSE KMX opened at $64.50 on Friday. The company’s 50 day simple moving average is $77.07 and its two-hundred day simple moving average is $78.83. The stock has a market capitalization of $9.85 billion, a PE ratio of 21.87, a P/E/G ratio of 1.67 and a beta of 1.58. The company has a debt-to-equity ratio of 2.92, a current ratio of 2.30 and a quick ratio of 0.55. CarMax has a 1 year low of $63.23 and a 1 year high of $91.25.

Institutional Investors Weigh In On CarMax

A number of institutional investors have recently modified their holdings of the stock. Cromwell Holdings LLC raised its position in shares of CarMax by 104.8% in the 4th quarter. Cromwell Holdings LLC now owns 424 shares of the company’s stock worth $35,000 after purchasing an additional 217 shares during the last quarter. Allworth Financial LP grew its holdings in shares of CarMax by 62.7% during the fourth quarter. Allworth Financial LP now owns 646 shares of the company’s stock valued at $51,000 after buying an additional 249 shares during the last quarter. Ameriflex Group Inc. purchased a new stake in shares of CarMax during the fourth quarter valued at approximately $53,000. ST Germain D J Co. Inc. bought a new stake in shares of CarMax during the fourth quarter valued at approximately $58,000. Finally, Colonial Trust Co SC raised its holdings in CarMax by 2,310.0% in the 4th quarter. Colonial Trust Co SC now owns 723 shares of the company’s stock worth $59,000 after acquiring an additional 693 shares during the last quarter.

Insider Activity at CarMax

In related news, SVP Tyler Tuite sold 4,869 shares of the firm’s stock in a transaction that occurred on Tuesday, January 28th. The stock was sold at an average price of $84.58, for a total transaction of $411,820.02. Following the completion of the transaction, the senior vice president now owns 227 shares of the company’s stock, valued at $19,199.66. This trade represents a 95.55 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.66% of the stock is currently owned by corporate 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.