CarMax, Inc. (KMX)

CarMax's stock experienced a decline following its preliminary Q3 2025 outlook and CEO departure. A legal investigation was initiated due to disappointing Q2 2026 financial results and the CEO's departure. Keith Barr was appointed as the new CEO, and Starboard Value took a substantial stake in CarMax, advocating for performance improvement. RBC Capital upgraded its Q4 fiscal 2026 revenue outlook, and Stephens raised its price target on KMX. Over the last six months, KMX has trended up, but over the past year, its price has fallen.

Demand for CarMax's products and services exhibits seasonality, with summer generally being the peak buying season for used cars. Seasonal shifts in consumer preferences for vehicle types are observed, with trucks and SUVs selling more in winter, while vans and road-trip-friendly vehicles are more popular in summer and fall. Regional weather also influences buying patterns, and January through March tends to be a slower period for car sales.

CarMax, Inc. is the largest retailer of used vehicles in the United States, operating an omnichannel platform that integrates physical dealerships with online sales and in-house financing. The company's offerings include retail sales of used vehicles, wholesale vehicle auctions, extended protection plans, vehicle reconditioning and repair services, and customer credit and financing through CarMax Auto Finance.

As of March 31, 2026, CarMax operates 259 locations across 41 states in the United States, strategically concentrated in Sun Belt and coastal metropolitan statistical areas. Key dealership clusters are in California, Texas, Florida, and Mid-Atlantic and Northeast MSAs, allowing for nationwide inventory access.

CarMax has received positive recognitions for its workplace culture and customer service, including being named to Fortune magazine's Best Workplaces in Retail list for the 11th consecutive year. It was also recognized by Great Place To Work® and PEOPLE magazine as one of the PEOPLE® Companies that Care and honored by Newsweek as the number one automotive marketplace (online) on the America's Best Customer Service 2026 list. The company has also been recognized for 22 consecutive years as one of Fortune magazine's 100 Best Companies to Work For®.

CarMax's ownership is primarily distributed among institutional investors, who hold approximately 78.23% of the company's stock. Insiders own about 0.52% of the stock, while public companies and individual investors hold approximately 21.25%. Recent insider trading activity includes directors buying shares and an officer selling shares in December 2025.