Zacks Research Weighs in on CarMax’s Q2 Earnings (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) – Analysts at Zacks Research decreased their Q2 2027 earnings estimates for shares of CarMax in a report issued on Thursday, September 17th. Zacks Research analyst Team now expects that the company will post earnings per share of $0.57 for the quarter, down from their previous estimate of $0.60. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for CarMax’s current full-year earnings is $2.72 per share. Zacks Research also issued estimates for CarMax’s Q3 2027 earnings at $0.40 EPS, Q4 2027 earnings at $0.27 EPS and FY2027 earnings at $2.54 EPS.

CarMax (NYSE:KMX) last issued its earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, topping analysts’ consensus estimates of $0.96 by $0.35. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The firm had revenue of $8.01 billion during the quarter, compared to analysts’ expectations of $7.42 billion. During the same period last year, the firm posted $1.38 earnings per share. The firm’s revenue for the quarter was up 6.2% compared to the same quarter last year.

Other equities analysts have also recently issued research reports about the company. UBS Group set a $60.00 price target on CarMax in a research note on Wednesday, July 29th. JPMorgan Chase & Co. upgraded shares of CarMax from an “underweight” rating to a “neutral” rating and upped their price target for the company from $38.00 to $60.00 in a research report on Wednesday, July 29th. Bank of America boosted their target price on shares of CarMax from $40.00 to $45.00 and gave the company an “underperform” rating in a research note on Wednesday, June 17th. Weiss Ratings raised CarMax from a “sell (d)” rating to a “sell (d+)” rating in a research report on Monday, July 20th. Finally, Barclays raised shares of CarMax from an “underweight” rating to an “equal weight” rating and increased their price target for the stock from $37.00 to $61.00 in a research report on Tuesday, July 21st. Two investment analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Reduce” and a consensus price target of $51.00.

CarMax Stock Performance

KMX opened at $58.41 on Friday. The business has a fifty day simple moving average of $59.43 and a 200-day simple moving average of $49.34. The firm has a market cap of $8.29 billion, a PE ratio of 38.17, a P/E/G ratio of 2.71 and a beta of 1.17. The company has a quick ratio of 0.82, a current ratio of 2.70 and a debt-to-equity ratio of 2.87. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $65.28.

Hedge Funds Weigh In On CarMax

A number of hedge funds have recently modified their holdings of KMX. Jupiter Topco LLC acquired a new stake in CarMax during the 2nd quarter worth $245,676,000. Janus Henderson Group PLC lifted its stake in shares of CarMax by 1.1% in the 1st quarter. Janus Henderson Group PLC now owns 4,580,807 shares of the company’s stock valued at $190,471,000 after purchasing an additional 49,987 shares during the period. Primecap Management Co. CA bought a new position in shares of CarMax in the 2nd quarter worth $230,548,000. Dimensional Fund Advisors LP grew its stake in shares of CarMax by 7.3% during the first quarter. Dimensional Fund Advisors LP now owns 4,275,663 shares of the company’s stock worth $177,767,000 after purchasing an additional 289,768 shares during the period. Finally, Norges Bank acquired a new stake in shares of CarMax during the fourth quarter worth $159,232,000.

Insider Transactions at CarMax

In other news, Director Sona Chawla acquired 2,000 shares of CarMax stock in a transaction on Thursday, June 25th. The stock was bought at an average price of $53.39 per share, for a total transaction of $106,780.00. Following the transaction, the director owned 21,702 shares of the company’s stock, valued at $1,158,669.78. The trade was a 10.15% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Keith Barr bought 9,400 shares of CarMax stock in a transaction that occurred on Monday, June 22nd. The stock was purchased at an average cost of $53.01 per share, with a total value of $498,294.00. Following the completion of the transaction, the chief executive officer owned 33,375 shares of the company’s stock, valued at $1,769,208.75. This trade represents a 39.21% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders acquired a total of 13,900 shares of company stock worth $735,574 over the last three months. 1.01% of the stock is currently owned by insiders.

About CarMax

CarMax, Inc is a specialty retailer of used vehicles and one of the largest automotive retailers in the United States. The company sells a broad selection of used cars, trucks and sport utility vehicles through its retail locations and online platform. CarMax also purchases vehicles from consumers and other sources, providing customers with a streamlined alternative to traditional private-party sales.

In addition to retail sales, CarMax operates wholesale vehicle auctions for vehicles that do not meet its retail standards or business requirements.