CarMax, Inc. (KMX)

Over the last six months, CarMax's stock has experienced fluctuations. While the stock price decreased by 44.63% over the last 12 months, it saw a year-to-date return of 22.18% and an increase of 9.17% in the past month as of early February 2026. In December 2025, CarMax reported its Third Quarter Fiscal Year 2026 results, earning $0.51 per share, exceeding expectations by $0.20, although revenue decreased by 7% to $5.8 billion. In September 2025, CarMax reported its Second Quarter Fiscal Year 2026 results, during which retail used unit sales decreased by 5.4%, and comparable store used unit sales saw a 6.3% decline, with wholesale units also decreasing by 2.2%. A securities class action lawsuit was filed against CarMax between December 2025 and January 2026, alleging that the company and its executives provided misleading information regarding strong growth and loan portfolio risks.

Demand for CarMax's products and services exhibits seasonality. The first fiscal quarter is typically the strongest for service margins due to higher seasonal sales volume. Credit trends for CarMax Auto Finance typically worsen in the fourth calendar quarter and then rebound in the first calendar quarter, largely influenced by tax refunds. In March/April 2025, there was a brief increase in business related to speculation about tariffs, which contributed to strong performance in April.

CarMax, Inc. is the largest retailer of used vehicles in the United States, operating as a Fortune 500 company headquartered in Richmond, Virginia. The company operates in the Consumer Discretionary sector and the Automotive Retail industry. CarMax's business model includes used vehicle retail sales, vehicle appraisal and purchasing services, wholesale auctions, and automotive financing through CarMax Auto Finance (CAF). Their product offerings include a wide range of used vehicles, extended service plans (MaxCare), and reconditioning and vehicle repair services. CarMax is known for pioneering a no-haggle pricing model and a customer-centric approach.

CarMax operates an extensive network of over 240 retail locations across 41 states nationwide. The company also leverages an omni-channel strategy, integrating online and in-person experiences to serve customers.

CarMax has received positive recognition for its brand reputation in the past year. In November 2025, CarMax was named the #1 automotive marketplace (online) on Newsweek's America's Best Customer Service 2026 list. In February 2026, CarMax was named one of TIME's America's Most Iconic Companies. The company has also been recognized for 21 consecutive years as one of the Fortune 100 Best Companies to Work For®. However, the securities class action lawsuit filed in December 2025, alleging misleading statements about demand and loan portfolio risks, could potentially impact its brand reputation.

Approximately 53.50% of CarMax's stock is held by institutional investors, 0.52% by insiders, and 45.98% by public companies and individual investors. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., State Street Corp, Janus Henderson Group Plc, Diamond Hill Capital Management Inc, Primecap Management Co/ca/, Vanguard Total Stock Market Index Fund Investor Shares (VTSMX), Vanguard 500 Index Fund Investor Shares (VFINX), Vanguard Small-Cap Index Fund Investor Shares (NAESX), and Dimensional Fund Advisors Lp.