Brokers Issue Forecasts for CarMax’s Q1 Earnings (NYSE:KMX)

CarMax, Inc. (NYSE:KMX) – Research analysts at Zacks Research boosted their Q1 2028 earnings per share estimates for CarMax in a report issued on Wednesday, August 12th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $1.01 for the quarter, up from their prior estimate of $0.95. Zacks Research has a “Strong-Buy” rating on the stock. The consensus estimate for CarMax’s current full-year earnings is $2.73 per share. Zacks Research also issued estimates for CarMax’s Q4 2028 earnings at $0.30 EPS and FY2029 earnings at $3.90 EPS.

Other analysts have also recently issued research reports about the stock. Truist Financial raised their target price on shares of CarMax from $47.00 to $50.00 and gave the stock a “hold” rating in a research note on Thursday, June 18th. Bank of America increased their target price on CarMax from $40.00 to $45.00 and gave the stock an “underperform” rating in a research note on Wednesday, June 17th. Robert W. Baird upped their price objective on CarMax from $48.00 to $55.00 and gave the company an “outperform” rating in a report on Thursday, June 18th. JPMorgan Chase & Co. raised shares of CarMax from an “underweight” rating to a “neutral” rating and boosted their target price for the company from $38.00 to $60.00 in a research report on Wednesday, July 29th. Finally, Argus upgraded shares of CarMax to a “hold” rating in a research note on Thursday, April 16th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, fourteen have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $51.00.

CarMax Trading Up 2.1%

KMX stock opened at $59.93 on Friday. CarMax has a one year low of $30.26 and a one year high of $62.56. The stock has a market cap of $8.50 billion, a price-to-earnings ratio of 39.17, a price-to-earnings-growth ratio of 2.69 and a beta of 1.15. The company has a fifty day moving average price of $54.37 and a two-hundred day moving average price of $46.40. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82.

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

Insider Activity

In related news, Director Peter J. Bensen bought 2,500 shares of CarMax stock in a transaction dated Monday, June 22nd. The shares were bought at an average cost of $52.20 per share, with a total value of $130,500.00. Following the acquisition, the director owned 24,796 shares in the company, valued at $1,294,351.20. This trade represents a 11.21% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Keith Barr purchased 9,400 shares of the company’s stock in a transaction that occurred on Monday, June 22nd. The stock was bought at an average cost of $53.01 per share, with a total value of $498,294.00. Following the purchase, the chief executive officer owned 33,375 shares of the company’s stock, valued at $1,769,208.75. This represents a 39.21% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders purchased 13,900 shares of company stock worth $735,574. 1.01% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Basecamp Wealth Advisors LLC lifted its stake in CarMax by 105.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company’s stock worth $26,000 after purchasing an additional 327 shares during the last quarter. Huntington National Bank raised its stake in CarMax by 62.4% during the fourth quarter. Huntington National Bank now owns 690 shares of the company’s stock worth $27,000 after acquiring an additional 265 shares in the last quarter. CYBER HORNET ETFs LLC bought a new position in shares of CarMax in the second quarter worth about $28,000. Global Retirement Partners LLC bought a new position in shares of CarMax in the second quarter worth about $29,000. Finally, Wellington Grp LLC boosted its stake in shares of CarMax by 6,500.0% in the 1st quarter. Wellington Grp LLC now owns 726 shares of the company’s stock valued at $30,000 after purchasing an additional 715 shares in the last quarter.

Key Headlines Impacting CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Zacks upgraded CarMax from “Hold” to “Strong Buy,” providing a notable bullish signal. The firm also raised its earnings forecasts across several future periods, including FY2028 EPS to $3.11 from $2.96, FY2029 EPS to $3.90 from $3.21, Q1 2028 EPS to $1.01 from $0.95, and Q4 2028 EPS to $0.30 from $0.25. These revisions suggest improving expectations for CarMax’s longer-term profitability. Zacks rating and estimates
• Positive Sentiment: A leadership change could create additional value, with an analysis suggesting CarMax may be approximately 7% above fair value based on the company’s management transition. The potential for improved execution or strategic direction may be supporting investor interest. CarMax could be 7% above fair value on leadership change
• Positive Sentiment: Recent insider activity is supportive: CEO Keith Barr purchased 9,400 shares and another executive purchased 2,500 shares during the past six months. These open-market purchases can signal management confidence in the company’s prospects.
• Neutral Sentiment: CarMax was named to PEOPLE’s 2026 Companies That Care list for the seventh time, ranking No. 70. The recognition reinforces its employee and community-focused culture but has limited direct impact on earnings or valuation. CarMax named one of the 2026 PEOPLE Companies That Care
• Negative Sentiment: A shareholder-rights law firm is investigating whether CarMax directors and officers breached their fiduciary duties. Although no wrongdoing has been established, the investigation introduces legal and governance uncertainty. CarMax shareholder investigation alert
• Negative Sentiment: Despite Zacks’ bullish stance, the broader analyst data cited includes an “Underperform” rating and a median price target of $45, below the current market level. This suggests some analysts view KMX as fully valued or vulnerable to a pullback.

CarMax Company Profile

CarMax (NYSE: KMX) is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company’s inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax’s retail locations or browse the company’s online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.