CarMax (NYSE:KMX) Stock Price Down 11.1% – Here’s What Happened

CarMax, Inc. (NYSE:KMX)’s share price fell 11.1% during mid-day trading on Thursday . The stock traded as low as $40.06 and last traded at $40.6940. 4,479,905 shares changed hands during trading, an increase of 31% from the average session volume of 3,418,746 shares. The stock had previously closed at $45.80.

CarMax News Summary

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: New CEO with digital and customer-focus credentials — Keith Barr, who led IHG Hotels & Resorts, will become CarMax’s CEO on March 16; investors hope his hospitality/digital background can accelerate omnichannel improvements and customer experience upgrades that could stabilize sales and margins. Keith Barr Takes CarMax Helm As Digital And Customer Focus Deepens
• Positive Sentiment: Market narrative shift toward a turnaround plan — major outlets report the hire as signaling a strategic pivot to digital and service-led differentiation, which can be seen as a credible first step to rebuild investor confidence. CarMax Taps Hotel Veteran to Lead Turnaround
• Neutral Sentiment: Formal appointment and board changes — CarMax issued an official press release confirming Barr’s appointment, the effective date (March 16), and board role shifts (interim CEO returning to director duties). This clarifies succession but is procedural. CarMax Names Keith Barr as Chief Executive Officer
• Neutral Sentiment: Media skepticism on fit — several outlets note Barr isn’t an auto-industry executive, framing the hire as unconventional; that raises questions about how transferable his hotel/digital playbook will be to used-car retail. CarMax Names a New CEO. He’s Not a Car Guy.
• Negative Sentiment: Analyst maintains bearish view — J.P. Morgan’s Rajat Gupta kept a Sell rating citing elevated execution risk and intensifying competition from online rivals like Carvana, arguing a new CEO alone may not be enough to reverse margin pressure or lower inventory risk quickly. CarMax: Elevated Execution Risk and Intensifying Carvana Competition Justify Sell Rating Despite New CEO
• Negative Sentiment: Recent sharp share decline and fundamental headwinds — commentary and reporting highlight a recent plunge in the stock tied to falling demand and worries about the company’s ability to execute a turnaround, underscoring that investor optimism may be tenuous until operational results improve. Why CarMax Stock Just Crashed

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the stock. Morgan Stanley set a $35.00 price objective on shares of CarMax in a research report on Monday, December 8th. Barclays raised their price target on CarMax from $24.00 to $28.00 and gave the company an “underweight” rating in a research report on Wednesday, January 21st. Royal Bank Of Canada upped their price objective on CarMax from $34.00 to $37.00 and gave the stock a “sector perform” rating in a report on Friday, December 19th. Mizuho decreased their price objective on CarMax from $46.00 to $36.00 and set a “neutral” rating on the stock in a report on Friday, December 19th. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of CarMax in a research note on Friday, January 9th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, twelve have assigned a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average target price of $40.07.

CarMax Stock Performance

The company has a debt-to-equity ratio of 2.74, a current ratio of 1.99 and a quick ratio of 0.51. The stock has a market cap of $5.87 billion, a PE ratio of 13.66, a price-to-earnings-growth ratio of 0.98 and a beta of 1.35. The business has a 50 day moving average price of $43.18 and a two-hundred day moving average price of $46.75.

CarMax (NYSE:KMX) last posted its quarterly earnings results on Thursday, December 18th. The company reported $0.43 EPS for the quarter, beating analysts’ consensus estimates of $0.31 by $0.12. The company had revenue of $5.79 billion during the quarter, compared to analyst estimates of $5.66 billion. CarMax had a net margin of 1.77% and a return on equity of 7.72%. The firm’s revenue was down 6.9% compared to the same quarter last year. During the same period in the prior year, the business posted $0.81 EPS. As a group, equities research analysts forecast that CarMax, Inc. will post 3.23 EPS for the current fiscal year.

Hedge Funds Weigh In On CarMax

A number of hedge funds and other institutional investors have recently made changes to their positions in KMX. Jones Financial Companies Lllp increased its position in CarMax by 3.1% during the 1st quarter. Jones Financial Companies Lllp now owns 5,372 shares of the company’s stock valued at $419,000 after purchasing an additional 161 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of CarMax by 0.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,389 shares of the company’s stock valued at $2,446,000 after buying an additional 173 shares during the period. WCM Investment Management LLC increased its position in shares of CarMax by 0.5% during the second quarter. WCM Investment Management LLC now owns 38,991 shares of the company’s stock valued at $2,597,000 after buying an additional 197 shares during the period. Vanguard Personalized Indexing Management LLC raised its stake in CarMax by 1.8% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 10,924 shares of the company’s stock worth $734,000 after buying an additional 198 shares in the last quarter. Finally, DekaBank Deutsche Girozentrale lifted its holdings in CarMax by 0.7% in the second quarter. DekaBank Deutsche Girozentrale now owns 31,245 shares of the company’s stock worth $2,081,000 after buying an additional 206 shares during the period.

About CarMax

CarMax (NYSE: KMX) is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company’s inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax’s retail locations or browse the company’s online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.