Stock events for CarMax, Inc. (KMX)
In the past six months, CarMax's stock price has significantly declined, decreasing by 42.60% between October 1, 2024, and September 30, 2025. The stock decreased by 23.83% in the past month and 36.49% over the last 12 months. A nearly 15% drop occurred due to the company missing Fourth Quarter Profit expectations and reporting lower-than-anticipated used-vehicle sales. CarMax's latest quarterly report revealed a sharp drop in sales and profits, with used vehicle sales at comparable stores plunging 6.3% and overall unit sales dropping more than 4%. The average retail selling price also slid, and used car values fell by approximately $1,000 per vehicle in one month. This downturn was attributed to an "affordability crunch" and CarMax's own "inventory missteps". On September 29, 2025, Seaport Global downgraded CarMax to neutral from buy.
Demand Seasonality affecting CarMax, Inc.’s stock price
CarMax data indicates that summer is generally the most popular season for vehicle purchases, while sports cars and luxury vehicles tend to be purchased more frequently during the winter months. Midwestern states show higher sales trends during the spring. Historically, used car inventory is typically lowest in the summer, leading CarMax to invest in advertising to encourage car owners to trade in their vehicles to meet demand. While January through March is usually a slower period for car sales, demand was unusually high in early 2020, partly due to a shortage of new vehicles.
Overview of CarMax, Inc.’s business
CarMax, Inc. is the largest used-car retailer in the United States, utilizing a dual business model of retail used vehicle sales and wholesale vehicle auctions. The company operates in the Consumer Discretionary sector and Automotive Retail industry, purchasing, reconditioning, and selling used vehicles. CarMax also provides vehicle financing through CarMax Auto Finance (CAF), extended protection plans (EPP), and vehicle repair services. The company is headquartered in Richmond, Virginia.
KMX’s Geographic footprint
CarMax operates approximately 240 to 253 used car superstores across 41 states in the United States. Its headquarters are located in Richmond, Virginia, while CarMax Auto Finance operates from Kennesaw, Georgia.
KMX Corporate Image Assessment
In the past year, CarMax has received positive recognition for its workplace culture, ranking #6 on Fortune's Best Workplaces in Retail and #38 on PEOPLE's Companies That Care List in 2025. The company marked its 21st consecutive year as one of Fortune Magazine's 100 Best Companies to Work For in March 2025. CarMax is known for its transparent, no-haggle pricing model and customer-centric approach. A "CarMax Statement on Inglewood, CA Incident" was issued on March 20, 2025. CarMax is also actively deploying technology solutions and expanding its omnichannel capabilities.
Ownership
CarMax's stock is primarily held by institutional investors, accounting for approximately 85.6% to 90.28% of the company's stock. Insiders hold about 0.48%, and public companies and individual investors account for roughly 8.8% to 23.21%. Major institutional shareholders include Vanguard Group Inc, BlackRock, Inc., Diamond Hill Capital Management Inc, State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, Janus Henderson Group Plc, Primecap Management Co/ca/, Aqr Capital Management Llc, VFINX - Vanguard 500 Index Fund Investor Shares, and Geode Capital Management, Llc.
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