CarMax, Inc. (KMX)

CarMax's stock price has experienced volatility and a decline in the past six months. As of July 18, 2025, the share price was $62.62, representing a 22.49% decline from July 22, 2024, when it was $80.79. Over the past six months, the stock has fallen by 22.42%. CarMax's stock dropped significantly after its fiscal fourth-quarter 2025 EPS missed analyst expectations, and the company also withdrew its guidance for long-term growth targets. CarMax Auto Finance income declined due to an increased provision for loan losses, which was largely related to a worsening of auto loan losses across the industry. CarMax is likely facing higher deceleration due to acute supply shortages of vehicles that are one to five years old, a trend expected to continue through calendar year 2025. CarMax's stock rose 6.6% following the release of strong Q1 2026 results on June 20, 2025. Speculation and the implementation of 25% tariffs on imported vehicles and parts have led to surging new car prices, pushing consumers towards more affordable pre-owned options, contributing to increased used vehicle unit sales for CarMax.

Demand for CarMax's products and services exhibits seasonality, with summer generally being the most popular season for vehicle purchases. Specific car makes and models also show seasonal preferences, with powerful trucks and SUVs with 4WD and high horsepower preferred in colder months and spacious vans, such as the Dodge Grand Caravan, popular in the fall. CarMax's financial results often reflect these seasonal trends, with the company's consistent revenue and sales volume demonstrating its strong market position. Analysts have noted that comparable store sales are likely to decelerate in the second fiscal quarter based on normal seasonality.

CarMax, Inc. is the largest retailer of used vehicles in the United States, headquartered in Richmond, Virginia. The company operates within the Consumer Cyclical sector and the Auto & Truck Dealerships industry, encompassing retail used vehicle sales and wholesale vehicle auctions. CarMax specializes in the purchase, reconditioning, and retail sale of a wide selection of used vehicles, including domestic, imported, luxury, hybrid, and electric vehicles, and is known for its no-haggle pricing and comprehensive vehicle inspections. While primarily focused on used cars, CarMax also sells new vehicles in select locations under franchise agreements. The company sells vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions. CarMax Auto Finance provides financing options to customers purchasing vehicles from CarMax, services auto loans, handles billing, payment collection, and vehicle repossessions for defaulted loans. CarMax offers MaxCare extended service plans and guaranteed asset protection products and provides vehicle repair and reconditioning services. CarMax directly buys cars from individuals and offers a seamless car-buying experience that integrates online and in-store channels. In fiscal year 2024, CarMax reported total revenues of $27.26 billion, with 810,703 used vehicles and 5,582 new vehicles sold through retail channels, and 537,447 vehicles sold through wholesale auctions.

CarMax operates approximately 240 used car superstores across the United States, including retail locations and Customer Experience Centers across 41 states. The company's headquarters are in Richmond, Virginia, with CarMax Auto Finance based in Kennesaw, Georgia. CarMax's national footprint and reconditioning infrastructure provide a significant advantage in sourcing and processing used vehicles at scale.

CarMax holds a significant position in the used car market, recognized for its brand reputation, customer experience, and national footprint. The company emphasizes a transparent and customer-friendly sales process and has established a strong brand known for its no-haggle pricing. Events that damage its reputation or harm the perception of the quality of its brand and the company's ability to realize the benefits of its omnichannel platform or initiatives leveraging evolving technologies, including AI, can impact perception. CarMax partnered with Angel City Football Club to become its Official Used Auto Retailer, which could positively impact its brand image, and launched new findings on consumer trends in used electric vehicle shopping in April 2025.

CarMax, Inc. has a mixed ownership structure, with institutional, retail, and individual investors. CarMax has a significant number of institutional owners and shareholders, with 1,356 to 1,359 institutions holding a total of approximately 185.5 to 185.6 million shares. Major institutional shareholders include Vanguard Group Inc., BlackRock, Inc., Principal Financial Group Inc., State Street Corp, and Diamond Hill Capital Management Inc. Vanguard Group Inc. is the largest individual CarMax shareholder, owning 12.05% of the company's shares. Approximately 24.03% to 43.43% of the company's stock is owned by public companies and individual investors (retail investors). Approximately 0.48% of the company's stock is owned by insiders, and insider trading activity in the past three months has shown more selling than buying.