William Blair Issues Optimistic Outlook for CarMax Earnings

CarMax, Inc. (NYSE:KMX) – Equities researchers at William Blair increased their Q3 2026 earnings per share (EPS) estimates for CarMax in a research note issued to investors on Monday, June 9th. William Blair analyst S. Zackfia now forecasts that the company will earn $0.76 per share for the quarter, up from their previous forecast of $0.75. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share. William Blair also issued estimates for CarMax’s FY2026 earnings at $3.75 EPS and FY2027 earnings at $4.36 EPS.

KMX has been the topic of a number of other reports. Stephens upgraded CarMax from an “equal weight” rating to an “overweight” rating and increased their target price for the stock from $86.00 to $90.00 in a report on Wednesday, March 26th. Needham & Company LLC lowered their price target on CarMax from $101.00 to $92.00 and set a “buy” rating for the company in a research report on Friday, April 11th. Wedbush reissued an “outperform” rating and issued a $90.00 price target on shares of CarMax in a research report on Monday, May 19th. Royal Bank of Canada reissued an “underperform” rating on shares of CarMax in a research report on Monday, April 21st. Finally, Robert W. Baird lowered their price target on CarMax from $95.00 to $90.00 and set an “outperform” rating for the company in a research report on Friday, April 11th. Three equities 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 issued a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $85.82.

CarMax Price Performance

CarMax stock opened at $67.79 on Wednesday. The stock has a market capitalization of $10.35 billion, a price-to-earnings ratio of 22.98, a PEG ratio of 1.67 and a beta of 1.38. CarMax has a 52-week low of $61.34 and a 52-week high of $91.25. The stock’s 50 day moving average price is $66.73 and its two-hundred day moving average price is $76.38. The company has a debt-to-equity ratio of 2.92, a quick ratio of 0.55 and a current ratio of 2.30.

Insider Buying and Selling

In related news, Director Mitchell D. Steenrod bought 1,300 shares of CarMax stock in a transaction on 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 acquisition, the director now directly owns 33,577 shares of the company’s stock, valued at $2,198,957.73. This represents a 4.03% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 1.70% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Norges Bank purchased a new position in shares of CarMax during the fourth quarter worth about $423,187,000. Kovitz Investment Group Partners LLC boosted its stake in CarMax by 348.0% in the fourth quarter. Kovitz Investment Group Partners LLC now owns 6,595,067 shares of the company’s stock worth $539,213,000 after buying an additional 5,122,850 shares in the last quarter. Fuller & Thaler Asset Management Inc. boosted its stake in CarMax by 626.1% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 903,024 shares of the company’s stock worth $70,364,000 after buying an additional 778,652 shares in the last quarter. AQR Capital Management LLC boosted its stake in CarMax by 82.9% in the fourth quarter. AQR Capital Management LLC now owns 1,400,012 shares of the company’s stock worth $114,465,000 after buying an additional 634,390 shares in the last quarter. Finally, GAMMA Investing LLC boosted its stake in CarMax by 8,675.6% in the first quarter. GAMMA Investing LLC now owns 515,830 shares of the company’s stock worth $40,193,000 after buying an additional 509,952 shares in the last quarter.

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.