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NEW YORK, Sept. 02, 2026 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP, a nationally recognized investor rights law firm, announces that it is investigating potential breaches of fiduciary duty by certain directors and officers of CarMax, Inc. (“CarMax” or the “Company”) (NYSE: KMX). The investigation seeks to determine whether the Company’s leadership fulfilled its obligations to shareholders and whether legal remedies may be available.

Current CarMax Shareholders Are Encouraged to Contact the Firm

Do you currently own shares of CarMax, Inc. (NYSE: KMX)?Did you purchase your shares before June 20, 2025?Would you like to learn more about your legal rights as a shareholder?
Why Is Bernstein Liebhard Investigating?

Bernstein Liebhard is investigating whether certain directors and officers of CarMax breached the fiduciary duties they owed to the Company and its shareholders. The investigation is focused on determining whether Company leadership acted in the best interests of shareholders and whether additional legal action may be appropriate based on publicly available information.

What Shareholders Should Do

If you currently own CarMax stock and would like to discuss your legal rights or obtain additional information regarding the investigation, please visit the firm’s CarMax Shareholder Investigation page or contact Investor Relations Manager Peter Allocco at (212) 951-2030 or [email protected] for a confidential consultation.

About Bernstein Liebhard LLP

For more than three decades, Bernstein Liebhard LLP has represented investors in complex securities and shareholder litigation. Since 1993, the firm has recovered more than $3.5 billion for its clients and has been retained by many of the nation’s largest public and private pension funds to monitor investments and pursue claims on behalf of investors.

The firm’s accomplishments include recognition on The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and inclusion in The Legal 500 for sixteen consecutive years, reflecting its longstanding commitment to protecting shareholder rights.

ATTORNEY ADVERTISING. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

Contact:

Peter Allocco
Investor Relations Manager
Bernstein Liebhard LLP
10 East 40th Street
New York, NY 10016
Phone: (212) 951-2030
Website: https://www.bernlieb.com
Email: [email protected]

Connor Clark & Lunn Investment Management Ltd. acquired a new position in CarMax, Inc. (NYSE:KMX – Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm acquired 24,880 shares of the company’s stock, valued at approximately $1,316,000.

A number of other institutional investors and hedge funds have also modified their holdings of KMX. Kiltearn Partners LLP acquired a new position in shares of CarMax in the second quarter valued at $21,499,000. Northwestern Mutual Wealth Management Co. acquired a new stake in CarMax during the second quarter worth $187,000. Quantbot Technologies LP bought a new stake in CarMax in the 2nd quarter valued at $598,000. Evolve Private Wealth LLC bought a new stake in CarMax in the 2nd quarter valued at $702,000. Finally, Landscape Capital Management L.L.C. acquired a new position in shares of CarMax in the 2nd quarter valued at $8,181,000.

Insiders Place Their Bets In other CarMax news, Director Peter J. Bensen bought 2,500 shares of the firm’s stock in a transaction dated Monday, June 22nd. The shares were bought at an average price of $52.20 per share, for a total transaction of $130,500.00. Following the completion of the acquisition, the director owned 24,796 shares of the company’s stock, valued at approximately $1,294,351.20. This trade represents a 11.21% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Sona Chawla bought 2,000 shares of the stock in a transaction dated Thursday, June 25th. The stock was acquired at an average price of $53.39 per share, with a total value of $106,780.00. Following the completion of the purchase, the director owned 21,702 shares of the company’s stock, valued at $1,158,669.78. This represents a 10.15% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have acquired 13,900 shares of company stock valued at $735,574. 1.01% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets Several analysts have recently weighed in on KMX shares. Royal Bank Of Canada lifted their target price on shares of CarMax from $41.00 to $45.00 and gave the company a “sector perform” rating in a research report on Thursday, June 18th. Zacks Research raised shares of CarMax from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, August 11th. Truist Financial raised their price target on shares of CarMax from $47.00 to $50.00 and gave the stock a “hold” rating in a research note on Thursday, June 18th. JPMorgan Chase & Co. raised CarMax from an “underweight” rating to a “neutral” rating and lifted their price objective for the company from $38.00 to $60.00 in a report on Wednesday, July 29th. Finally, Bank of America upped their price objective on CarMax from $40.00 to $45.00 and gave the company an “underperform” rating in a research note on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, fourteen have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $51.00. Read Our Latest Analysis on CarMax

CarMax Price Performance Shares of CarMax stock opened at $61.96 on Monday. The company has a current ratio of 2.70, a quick ratio of 0.82 and a debt-to-equity ratio of 2.87. The stock has a market capitalization of $8.79 billion, a price-to-earnings ratio of 40.50, a P/E/G ratio of 2.84 and a beta of 1.15. CarMax, Inc. has a 1-year low of $30.26 and a 1-year high of $65.28. The firm’s 50-day moving average price is $56.79 and its two-hundred day moving average price is $47.59.

CarMax (NYSE:KMX – Get Free Report) last announced its earnings results on Wednesday, June 17th. The company reported $1.31 EPS for the quarter, topping the consensus estimate of $0.96 by $0.35. The business had revenue of $8.01 billion for the quarter, compared to the consensus estimate of $7.42 billion. CarMax had a return on equity of 6.64% and a net margin of 0.84%.CarMax’s revenue was up 6.2% compared to the same quarter last year. During the same period in the previous year, the business earned $1.38 EPS. On average, equities analysts predict that CarMax, Inc. will post 2.73 earnings per share for the current fiscal year.

CarMax Profile (Free Report)

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.

Read More Five stocks we like better than CarMax Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against?

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CarMax, Inc. (NYSE:KMX – Get Free Report) has earned an average recommendation of “Hold” from the twenty analysts that are presently covering the stock, MarketBeat Ratings reports. Three investment analysts have rated the stock with a sell rating, fourteen have given a hold rating, two have assigned a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $51.00.

A number of analysts have recently weighed in on the stock. Stephens upgraded shares of CarMax from an “equal weight” rating to an “overweight” rating and set a $66.00 price objective on the stock in a research note on Thursday, June 18th. Morgan Stanley boosted their target price on shares of CarMax from $35.00 to $44.00 and gave the company an “equal weight” rating in a research report on Tuesday, June 23rd. Royal Bank Of Canada upped their price target on shares of CarMax from $41.00 to $45.00 and gave the company a “sector perform” rating in a report on Thursday, June 18th. UBS Group set a $60.00 price target on CarMax in a research report on Wednesday, July 29th. Finally, Robert W. Baird boosted their price objective on CarMax from $48.00 to $55.00 and gave the company an “outperform” rating in a report on Thursday, June 18th.

Get Our Latest Stock Report on CarMax

Insider Buying and Selling In related news, Director Peter J. Bensen purchased 2,500 shares of the business’s stock in a transaction that occurred on Monday, June 22nd. The stock was bought at an average price of $52.20 per share, with a total value of $130,500.00. Following the acquisition, the director owned 24,796 shares in the company, valued at $1,294,351.20. The trade was a 11.21% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Keith Barr acquired 9,400 shares of CarMax stock in a transaction on Monday, June 22nd. The shares were bought at an average price of $53.01 per share, with a total value of $498,294.00. Following the completion of the transaction, the chief executive officer directly owned 33,375 shares of the company’s stock, valued at $1,769,208.75. This trade represents a 39.21% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last 90 days, insiders acquired 13,900 shares of company stock valued at $735,574. 1.01% of the stock is owned by company insiders. Institutional Trading of CarMax Several institutional investors have recently modified their holdings of KMX. Corient Private Wealth LP increased its stake in shares of CarMax by 19.2% during the second quarter. Corient Private Wealth LP now owns 67,136 shares of the company’s stock worth $3,551,000 after purchasing an additional 10,811 shares in the last quarter. Amundi lifted its stake in CarMax by 38.4% in the 2nd quarter. Amundi now owns 41,425 shares of the company’s stock valued at $2,191,000 after buying an additional 11,484 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in CarMax in the 2nd quarter valued at about $1,550,000. California State Teachers Retirement System boosted its holdings in CarMax by 4,934.8% in the 2nd quarter. California State Teachers Retirement System now owns 8,253,061 shares of the company’s stock worth $436,504,000 after buying an additional 8,089,141 shares during the last quarter. Finally, iSAM Funds UK Ltd acquired a new stake in CarMax in the 2nd quarter worth about $222,000.

CarMax Trading Down 0.2% Shares of NYSE:KMX opened at $61.96 on Friday. The company has a quick ratio of 0.82, a current ratio of 2.70 and a debt-to-equity ratio of 2.87. CarMax has a 52-week low of $30.26 and a 52-week high of $65.28. The stock has a market cap of $8.79 billion, a price-to-earnings ratio of 40.50, a PEG ratio of 2.84 and a beta of 1.15. The business has a 50-day moving average price of $56.79 and a 200-day moving average price of $47.59.

CarMax (NYSE:KMX – Get Free Report) last issued its earnings results on Wednesday, June 17th. The company reported $1.31 EPS for the quarter, beating analysts’ consensus estimates of $0.96 by $0.35. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The firm had revenue of $8.01 billion for the quarter, compared to analyst estimates of $7.42 billion. During the same quarter in the prior year, the firm earned $1.38 earnings per share. CarMax’s revenue for the quarter was up 6.2% on a year-over-year basis. Equities analysts predict that CarMax will post 2.73 EPS for the current year.

CarMax Company Profile (Get Free Report)

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.

Further Reading Five stocks we like better than CarMax Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against?

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RICHMOND, VA, Aug. 25, 2026 (GLOBE NEWSWIRE) -- As the first members of Gen Alpha turn 16, they're approaching one of life's biggest milestones: getting a driver's license. With student parking lots across the country starting to feature more and more of the eldest members of this new generation of drivers, CarMax, Inc. (NYSE: KMX), the nation's largest retailer of used cars, commissioned new research to better understand how they are navigating that milestone and what they and their families have in mind when shopping for a car.

The findings reveal they are eager to get behind the wheel. Unlike widely reported trends among Gen Z, who delayed getting their licenses and expressed greater ambivalence toward driving, this next generation of drivers is telling a different story. Gen Alpha is widely reported to have begun in 2010, and CarMax found that four in five Gen Alpha teens ages 14-16 (80%) either already have their license or plan to get it as soon as they are legally allowed to, while more than two-thirds (68%) say they are excited about the idea of driving.

For many of the teens surveyed, driving is about more than just transportation. Among those who already have their license or plan to get one, three-quarters (75%) view getting a driver's license as a major life milestone. The excitement is largely fueled by the independence that comes with driving, with teens most looking forward to being able to go wherever they want, whenever they want (33%) and no longer relying on parents for rides (31%).

But perhaps the biggest surprise is how many Gen Alpha teens think they’ll be getting a car after getting their license and how they want to shop for it. The survey found that 95 percent of these teens who already have their license or plan to get it expect to have access to a vehicle right away, with 40 percent of them expecting their family will purchase a vehicle for them to drive. And despite being the first generation raised entirely in a digital-first world, the overwhelming majority (86%) say it's important to see, sit in and test drive a vehicle before their family makes a purchase decision.

"After years of hearing about Gen Z delaying getting their license, we wanted to understand how that trend could play out as the oldest members of Gen Alpha reach driving age,” said Corey Haire, Vice President of Regional Sales at CarMax. “Contrary to Gen Z, we found that the next generation of drivers are eager to get behind the wheel and have the freedom to explore new places, connect with others, and gain a greater sense of independence. With the ability to compare options, take a test drive and learn from knowledgeable associates, CarMax is uniquely positioned to support families during the moments that matter most in their lives, like getting your first car.”

By the Numbers: Gen Alpha's Road to Independence

Gen Alpha Is Ready to Drive

80% already have their license or plan to get it as soon as legally allowedOnly 2% don’t plan to get a driver's license at all68% are excited about driving26% admit they're nervous about getting behind the wheel Driving Represents Freedom
According to those who already have their driver's license or plan to get it:

75% view getting a driver's license as a major life milestone33% are most excited about being able to go wherever they want, whenever they want31% can't wait to stop relying on parents for rides Design and Drive Lead the Way

37% are most excited about how a car looks30% prioritize how it drives13% prioritize fuel efficiencyJust 11% prioritize features like touchscreens and sound systemsOnly 8% prioritize driver-assistance technology From License to Driver’s Seat
According to those who already have their driver's license or plan to get it:

95% expect to have access to a vehicle as soon as they get their license40% expect their family will purchase a vehicle for them to drive28% expect to receive a hand-me-down25% expect to share a family vehicle Digital Natives Still Want an In-Person Experience

86% say it's important to see, sit in and test drive a vehicle before a purchase decision is madeIncluding 48% who say it's very importantJust 14% say it isn't important Helping Families Navigate the First-Car Journey with Confidence

As Gen Alpha approaches driving age, families are making decisions that blend emotion with practicality. While parents typically prioritize factors like affordability and reliability, a pattern CarMax often hears from families, survey results show teens are thinking about freedom and independence.

While Gen Alpha is the first generation to be born entirely in a digital-first world, never knowing life without the internet at their fingertips, the survey suggests they are not looking for a fully online path to car shopping. When evaluating qualities like how a vehicle looks and feels on the road, the majority still values the hands-on experiences that come from seeing a vehicle up close and taking it for a test drive. For digitally-native teens and their families, the path to a first car may start online but doesn’t end there. The convenience of researching cars online paired with the confidence that comes from being able to compare options in person allows them and their families to drive away feeling like they found the right car.

At CarMax, families don’t have to choose between shopping online or in-store; they get the best of both. Teens can start exploring online to find a car that excites them with the ability to experience what they value most in person: how the car looks and drives. At the same time, parents can feel confident that the priorities they most often discuss with CarMax associates, including affordability, reliability and long-term value, remain at the center of the decision-making process. CarMax helps families shop with confidence and focus on finding the right fit, with tens of thousands of vehicles across most makes, models and price points, upfront no-haggle pricing, more than 25,000 vehicles priced under $25,000, and every vehicle being CarMax Certified quality and backed by a 10-Day Money-Back Guarantee and a 30-day limited warranty.

"We know that Gen Alpha teens feel that getting their driver’s license is a major life milestone. Families should treat it like one by making the car shopping experience feel like an exciting new chapter,” Haire continued. “At CarMax, families can browse tens of thousands of vehicles from the comfort of their couch, then come in to sit in and test drive the ones that excite them most. And with upfront pricing and knowledgeable support along the way, both teens and their parents can focus on finding the right car they can count on."

For more advice and guidance, CarMax associates shared tips to help parents and teens navigate the first-car journey with greater clarity and confidence: https://www.carmax.com/articles/gen-alpha-first-car-survey-2026

Survey Methodology
The CarMax Survey was conducted by Wakefield Research among 1,000 U.S. Teens Ages 14 to 16, between July 17th and July 29th, 2026, using an email invitation and an online survey. The data has been weighted.

About CarMax
CarMax, the nation's largest retailer of used autos, has earned customers' trust for more than 30 years by leading with integrity, transparency and honesty. CarMax continues to redefine car buying and selling for millions of customers, delivering the easy and confident experience they love. CarMax has more than 255 store locations, approximately 28,000 associates, and is proud to have been recognized for 22 consecutive years as one of the Fortune 100 Best Companies to Work For®. During the fiscal year that ended February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated $8 billion in auto loans during fiscal 2026, adding to its $16 billion portfolio. CarMax is committed to helping its communities thrive and reducing the environmental footprint of its operations. Learn more in the 2026 Responsibility Report. For more information, visit www.carmax.com.

Biglari Capital CORP. purchased a new stake in CarMax, Inc. (NYSE: KMX) in the undefined quarter, according to its most recent filing with the SEC. The fund purchased 125,420 shares of the company's stock, valued at approximately $6,633,464,000. CarMax comprises about 0.6% of Biglari Capital CORP.'s portfolio, making the stock its 6th largest

BlackRock Inc. decreased its position in shares of CarMax, Inc. (NYSE:KMX – Free Report) by 1.0% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 17,092,089 shares of the company’s stock after selling 165,372 shares during the period. BlackRock Inc. owned approximately 12.04% of CarMax worth $904,001,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in the company. Bessemer Group Inc. raised its stake in CarMax by 28.1% during the first quarter. Bessemer Group Inc. now owns 156,121 shares of the company’s stock valued at $6,491,000 after purchasing an additional 34,211 shares in the last quarter. Bank of America Corp DE grew its stake in shares of CarMax by 61.7% in the 1st quarter. Bank of America Corp DE now owns 1,687,359 shares of the company’s stock worth $70,160,000 after buying an additional 643,834 shares in the last quarter. Convergence Investment Partners LLC purchased a new position in shares of CarMax in the 1st quarter worth $1,688,000. BML Capital Management LLC bought a new stake in shares of CarMax in the 4th quarter worth about $5,989,000. Finally, Louisiana State Employees Retirement System bought a new stake in shares of CarMax in the 1st quarter worth about $2,615,000.

Analyst Ratings Changes KMX has been the subject of a number of analyst reports. Stephens raised shares of CarMax from an “equal weight” rating to an “overweight” rating and set a $66.00 price target for the company in a report on Thursday, June 18th. Barclays upgraded CarMax from an “underweight” rating to an “equal weight” rating and boosted their price objective for the company from $37.00 to $61.00 in a report on Tuesday, July 21st. Morgan Stanley upped their price objective on CarMax from $35.00 to $44.00 and gave the company an “equal weight” rating in a research report on Tuesday, June 23rd. Bank of America increased their target price on CarMax from $40.00 to $45.00 and gave the stock an “underperform” rating in a research note on Wednesday, June 17th. Finally, UBS Group set a $60.00 target price on CarMax in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, fourteen have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $51.00.

Read Our Latest Stock Analysis on KMX CarMax Stock Performance KMX stock opened at $62.14 on Friday. The firm has a market cap of $8.82 billion, a price-to-earnings ratio of 40.61, a PEG ratio of 2.84 and a beta of 1.15. The firm has a 50-day simple moving average of $55.65 and a two-hundred day simple moving average of $46.98. CarMax, Inc. has a one year low of $30.26 and a one year high of $63.00. The company has a debt-to-equity ratio of 2.87, a quick ratio of 0.82 and a current ratio of 2.70.

CarMax (NYSE:KMX – Get Free Report) last announced its earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.35. CarMax had a net margin of 0.84% and a return on equity of 6.64%. The company had revenue of $8.01 billion during the quarter, compared to the consensus estimate of $7.42 billion. During the same period last year, the firm earned $1.38 earnings per share. CarMax’s revenue was up 6.2% compared to the same quarter last year. On average, equities analysts forecast that CarMax, Inc. will post 2.73 EPS for the current fiscal year.

Insiders Place Their Bets In related news, Director Peter J. Bensen acquired 2,500 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The stock was purchased at an average cost of $52.20 per share, with a total value of $130,500.00. Following the transaction, the director directly owned 24,796 shares of the company’s stock, valued at $1,294,351.20. This trade represents a 11.21% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Keith Barr acquired 9,400 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The stock was bought at an average cost of $53.01 per share, with a total value of $498,294.00. Following the completion of the transaction, the chief executive officer directly owned 33,375 shares in the company, valued at $1,769,208.75. The trade was a 39.21% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders acquired 13,900 shares of company stock valued at $735,574. 1.01% of the stock is currently owned by corporate insiders.

About CarMax (Free Report)

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.

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New York, New York--(Newsfile Corp. - August 18, 2026) - Bernstein Liebhard LLP, a nationally recognized investor rights law firm, announces that it is investigating potential breaches of fiduciary duty by certain directors and officers of CarMax, Inc. ("CarMax" or the "Company") (NYSE: KMX). The investigation seeks to determine whether the Company's leadership fulfilled its obligations to shareholders and whether legal remedies may be available.

Current CarMax Shareholders Are Encouraged to Contact the Firm

Do you currently own shares of CarMax, Inc. (NYSE: KMX)?Did you purchase your shares before June 20, 2025?Would you like to learn more about your legal rights as a shareholder?Why Is Bernstein Liebhard Investigating?

Bernstein Liebhard is investigating whether certain directors and officers of CarMax breached the fiduciary duties they owed to the Company and its shareholders. The investigation is focused on determining whether Company leadership acted in the best interests of shareholders and whether additional legal action may be appropriate based on publicly available information.

What Shareholders Should Do

If you currently own CarMax stock and would like to discuss your legal rights or obtain additional information regarding the investigation, please visit the firm's CarMax Shareholder Investigation page or contact Investor Relations Manager Peter Allocco at (212) 951-2030 or [email protected] for a confidential consultation.

About Bernstein Liebhard LLP

For more than three decades, Bernstein Liebhard LLP has represented investors in complex securities and shareholder litigation. Since 1993, the firm has recovered more than $3.5 billion for its clients and has been retained by many of the nation's largest public and private pension funds to monitor investments and pursue claims on behalf of investors.

The firm's accomplishments include recognition on The National Law Journal's "Plaintiffs' Hot List" thirteen times and inclusion in The Legal 500 for sixteen consecutive years, reflecting its longstanding commitment to protecting shareholder rights.

ATTORNEY ADVERTISING. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/310252

Source: Bernstein Liebhard LLP

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

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RICHMOND, VA, Aug. 12, 2026 (GLOBE NEWSWIRE) -- CarMax, Inc. (NYSE: KMX) has been named as one of the 2026 PEOPLE® Companies That Care, ranking #70 and marking the company's seventh appearance on the list. This recognition, presented by PEOPLE magazine and Great Place To Work®, highlights CarMax's people-first culture and commitment to helping its communities thrive.

Richmond, VA, Aug. 06, 2026 (GLOBE NEWSWIRE) -- CarMax, Inc. (NYSE: KMX), the nation’s largest retailer of used cars, today announced it is working with Sierra on a better inbound call experience for CarMax customers. Deployed in May, Sierra’s advanced AI voice-enabled agents ensure CarMax customers reach the right destination or speak with an associate faster and more consistently regardless of call volume, time or time zone.

Sierra agents provide conversational and clarifying questions to better understand customer needs, resulting in quick answers to common questions, such as store hours and vehicle availability, and smoother transitions to a CarMax associate. Since launch, CarMax has seen an increase in call resolution and a decline in the rate of unresolved calls. The company is working to add further capabilities, including appointment management for tasks such as scheduling appraisals, browsing and test drives.

“We continually explore new and innovative ways to better serve customers and support our associates, and partnering with Sierra has been an important part of that, ensuring our most frequent customer questions are answered consistently and on demand. That frees our associates to do what they do best: provide knowledgeable guidance through the bigger decisions in the car shopping journey," said Shamim Mohammad, CarMax Chief Information and Technology Officer.

“We’re so excited to partner with CarMax, a pioneer in applied AI. Thanks to their AI agent, there’s no need to wait on hold or repeat yourself as you are transferred from one place to another. And for associates, it means less time answering simple questions and more time helping customers find the right car,” said Bret Taylor, Co-Founder and CEO of Sierra.

Today’s announcement demonstrates CarMax’s continued commitment to making car buying and selling clearer and easier through innovative technology. CarMax has been leveraging AI for years and has its own 24/7 virtual assistant, Skye, on CarMax.com and was the first U.S. auto retailer with an app in the ChatGPT app store that supports car shopping.

About CarMax

CarMax, the nation's largest retailer of used autos, has earned customers' trust for more than 30 years by leading with integrity, transparency and honesty. CarMax continues to redefine car buying and selling for millions of customers, delivering the easy and confident experience they love. CarMax has more than 255 store locations, approximately 28,000 associates, and is proud to have been recognized for 22 consecutive years as one of the Fortune 100 Best Companies to Work For®. During the fiscal year that ended February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated $8 billion in auto loans during fiscal 2026, adding to its $16 billion portfolio. CarMax is committed to helping its communities thrive and reducing the environmental footprint of its operations. Learn more in the 2026 Responsibility Report. For more information, visit www.carmax.com.

About Sierra

Sierra is the platform that helps businesses build better, more human customer experiences with AI. With Sierra, companies deploy customer-facing AI agents that communicate in natural language, solve complex problems, and personalize every interaction—on any channel.

Sierra works with 40% of the Fortune 50, and 1 in 3 of the world’s leading banks. Across a range of industries, leading brands like The GAP, Rocket Mortgage, SoFi, Sutter Health, and Wayfair have partnered with Sierra to improve customer satisfaction in the moments that matter while driving operational efficiency and revenue growth.

NEW YORK, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP, a nationally recognized investor rights law firm, announces that it is investigating potential breaches of fiduciary duty by certain directors and officers of CarMax, Inc. (“CarMax” or the “Company”) (NYSE: KMX). The investigation seeks to determine whether the Company’s leadership fulfilled its obligations to shareholders and whether legal remedies may be available.

Current CarMax Shareholders Are Encouraged to Contact the Firm

Do you currently own shares of CarMax, Inc. (NYSE: KMX)?Did you purchase your shares before June 20, 2025?Would you like to learn more about your legal rights as a shareholder?
Why Is Bernstein Liebhard Investigating?

Bernstein Liebhard is investigating whether certain directors and officers of CarMax breached the fiduciary duties they owed to the Company and its shareholders. The investigation is focused on determining whether Company leadership acted in the best interests of shareholders and whether additional legal action may be appropriate based on publicly available information.

What Shareholders Should Do

If you currently own CarMax stock and would like to discuss your legal rights or obtain additional information regarding the investigation, please visit the firm’s CarMax Shareholder Investigation page or contact Investor Relations Manager Peter Allocco at (212) 951-2030 or [email protected] for a confidential consultation.

About Bernstein Liebhard LLP

For more than three decades, Bernstein Liebhard LLP has represented investors in complex securities and shareholder litigation. Since 1993, the firm has recovered more than $3.5 billion for its clients and has been retained by many of the nation’s largest public and private pension funds to monitor investments and pursue claims on behalf of investors.

The firm’s accomplishments include recognition on The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and inclusion in The Legal 500 for sixteen consecutive years, reflecting its longstanding commitment to protecting shareholder rights.

ATTORNEY ADVERTISING. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

Contact:

Peter Allocco
Investor Relations Manager
Bernstein Liebhard LLP
10 East 40th Street
New York, NY 10016
Phone: (212) 951-2030
Website: https://www.bernlieb.com
Email: [email protected]

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: CarMax (KMX - Free Report) CarMax, Inc. is the largest retailer of used vehicles in the United States. In fiscal 2026 (ended Feb. 28, 2026), the company sold approximately 781,000 used vehicles at retail. It is also one of the nation’s largest operators of wholesale vehicle auctions, with roughly 538,000 vehicles sold in fiscal 2026.

KMX is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Retail-Wholesale stock. KMX has a Momentum Style Score of B, and shares are up 14.1% over the past four weeks.

Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.31 to $2.70 per share. KMX also boasts an average earnings surprise of +28.9%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, KMX should be on investors' short list.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.

Considering buying KMX stock? Here’s what analysts think:

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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

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Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

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How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

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Stock to Watch: CarMax (KMX - Free Report) CarMax, Inc. is the largest retailer of used vehicles in the United States. In fiscal 2026 (ended Feb. 28, 2026), the company sold approximately 781,000 used vehicles at retail. It is also one of the nation’s largest operators of wholesale vehicle auctions, with roughly 538,000 vehicles sold in fiscal 2026.

KMX is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 21.26; value investors should take notice.

Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.31 to $2.70 per share. KMX boasts an average earnings surprise of +28.9%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, KMX should be on investors' short list.

NEW YORK, July 16, 2026 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP:

Do you currently own shares of CarMax, Inc. (NYSE: KMX)?Did you purchase any of your shares prior to June 20, 2025?Do you want to discuss your rights?
Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, is investigating whether certain directors and officers of CarMax, Inc. (“CarMax” or the “Company”) (NYSE: KMX) breached the fiduciary duties they owe to the Company.

What To Do Next:

If you currently hold CarMax stock and would like to discuss your legal rights and options, please visit CarMax, Inc. Shareholder Investigation or contact Investor Relations Manager Peter Allocco at (212) 951-2030 or [email protected].

About Bernstein Liebhard:

Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.

ATTORNEY ADVERTISING. © 2026 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

Contact Information:

Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
[email protected]

CarMax's (KMX 1.41%) summer started off well, with impressive stock performance despite a quarterly earnings report that, at least initially, wasn't well received. After analysts piled in with a clutch of price target raises and even a recommendation upgrade, the vehicle retailer's stock started heading north again. A series of insider buys also lifted confidence in the stock, and it exited June up by almost 19%.

Stop and start That earnings release was published on June 17, and, at least outwardly, CarMax did well against expectations. Net revenue was just over $8 billion in its first quarter of fiscal 2027, for a year-over-year gain of 6%. Net income under generally accepted accounting principles (GAAP) fell by 12%, however, to $186 million, or $1.31 per share.

Image source: Getty Images.

Despite the bottom-line decline, both metrics handily beat the consensus analyst estimates. On average, pundits tracking the auto retailer's stock were modeling revenue of less than $7.4 billion and GAAP net income of only $0.96 per share.

CarMax was a victim of timing, to an extent. As encouraging as some of the retailer's metrics were, they came at a time of persistently high gasoline prices, driven mostly by this country's conflict with Iran. Most of the models sold by the company are gas-consuming internal combustion engine (ICE) ones.

Also in mid-June, speculation grew that the U.S. Federal Reserve would raise interest rates; if that occurs, auto loans will become more expensive and will likely negatively affect the car market (and, more directly, squeeze the company's proprietary lending arm, CarMax Auto Finance).

Yet the reactions of analysts tracking CarMax stock were in stark contrast to those of investors selling their shares after the quarterly results were published. A clutch of them raised their price targets on CarMax, with one, Jeff Lick of Stephens, going so far as to upshift his recommendation on the stock. For him, it's now an overweight (read: buy), one notch up from his previous equalweight (hold). He also substantially raised his price target to $66 per share from the preceding $43.

Today's Change

(

-1.41

%) $

-0.72

Current Price

$

50.33

The inside scoop The bullishness in the stock stemming from those analyst moves was exacerbated by a series of insider stock purchases. The most notable buyer was CEO Keith Barr, who purchased 9,400 CarMax shares on June 22. Four members of the company's board of directors also opened their wallets for this purchase, collectively snapping up 14,674 shares.

I feel the immediate sell-off was unjustified; even if profitability declined, that sales growth figure was encouraging, and management seems to be implementing its new "four pillar" business strategy well. The only major concern I would have is gas prices; if they stay lofty, I'd worry that the mega-dealership could take some hits.

June 30, 2026 10:00 ET  | Source: CarMax

RICHMOND, Va., June 30, 2026 (GLOBE NEWSWIRE) -- CarMax, Inc. (NYSE: KMX), the nation’s largest retailer of used cars, has been recognized by Points of Light as a 2026 honoree of The Civic 50®, recognizing the top community-minded companies in the United States according to a comprehensive annual survey. The Civic 50 honorees are recognized for their excellence in employee volunteering, community investment and social impact strategy.

Helping its communities thrive and making a positive social impact is core to who CarMax is and how the company conducts business. Associates are at the core of CarMax’s giving, dedicating their time and talents to meaningful causes important to them. Regional Giving Committees connect store leaders and champions around local priorities, while volunteer programs are built around associates’ passions and interests. Opportunities range from large-scale community projects and companywide walks to small acts of kindness in associates' own neighborhoods. In fiscal year 2026, 100% of CarMax locations participated in volunteer programs, and more than 75% of associates participated in one or more community programs.

"We're honored to be named to the CIVIC 50 by Points of Light, one of the most respected benchmarks for corporate citizenship,” said Leslie Parpart, assistant vice president of CSR and Associate Experience, CarMax. "This recognition reflects the heart of who we are, associates who show up for their communities with care, intention, and a genuine commitment to making a difference. We're incredibly proud to be recognized alongside so many community-minded companies, and especially proud of the associates who bring this to life every day."

Now in its 14th year, The Civic 50® is the nation’s leading corporate social impact recognition program, celebrating excellence in employee volunteering, community investment and social impact strategy. The Civic 50® survey, which recognizes public and private companies with annual revenues of at least $1 billion, allows CSR teams to track purposeful volunteering, giving and community engagement insights.

“Today’s leading companies understand that community engagement is more than a program, it’s a reflection of their commitment to advancing social impact in ways that strengthen both their company and the communities they serve,” said Jennifer Sirangelo, president and CEO of Points of Light. “CarMax demonstrates how to embed purpose into the employee experience, build authentic relationships with communities and use business as a force for good. We’re proud to honor them with the 2026 Civic 50 award.”

The survey includes quantitative and multiple-choice questions that inform the scoring process. The Civic 50® remains the only survey and ranking system focused exclusively on measuring corporate community engagement.

About CarMax
CarMax, the nation’s largest retailer of used autos, revolutionized the automotive retail industry by driving integrity, honesty and transparency in every interaction. The company offers a truly personalized experience with the option for customers to do as much, or as little, online and in-store as they want. During the fiscal year that ended February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles at its auctions. In addition, CarMax Auto Finance originated $8 billion in auto loans during fiscal 2026, adding to its $16 billion portfolio. CarMax has more than 255 store locations, approximately 28,000 associates, and is proud to have been recognized for 22 consecutive years as one of the Fortune 100 Best Companies to Work For®. CarMax is committed to helping its communities thrive and reducing the environmental footprint of its operations. Learn more in the 2026 Responsibility Report. For more information, visit www.carmax.com.

About Points of Light
Points of Light is a nonpartisan, global nonprofit organization that inspires, equips and mobilizes millions of people to create positive change through volunteering and civic engagement. Through work with nonprofits, companies and social impact leaders, the organization galvanizes volunteers to meet critical needs in communities. As the world’s largest organization dedicated to increasing volunteer service, Points of Light engages more than 3.8 million volunteers across 32 countries. For more information, visit www.pointsoflight.org.

Contact:
Public Relations
CarMax
[email protected]
(855) 887-2915

On June 25, 2026, CarMax Inc (KMX) shares rose 4.2% to $52.90. The stock has experienced a 52-week range of $30.26 to $71.99, reflecting significant volatility

CarMax NYSE: KMX entered a market reversal earlier this year asc it transitioned to a new CEO and activist investors took positions. The story now is that Keith Barr’s four-pillar strategy to increase volume, improve digital sales, add value on each transaction, and drive efficiency is gaining traction.

The question is whether CarMax can preserve its cost savings and return to profitable growth in the coming quarters, and the early signs are encouraging. In this environment, CarMax remains in the middle of an evolving catalyst, with the stronger signal—sustained operational improvement—still to come.

Get CarMax alerts:

CarMax Outperforms in Q1, First Report With New CeoCarMax Today

$52.31 +0.40 (+0.77%)

As of 11:40 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$30.26▼

$71.99P/E Ratio34.26

Price Target$47.73

CarMax faced headwinds in Q1 fiscal year 2027 (FY2027), including uneven consumer demand and affordability pressure, but performed well, with unit volume increasing by 3.3% across the system.

Revenue grew by 6% to just over $8 billion, outperforming expectations by more than 780 basis points. Segmentally, wholesalers did the heavy lifting, with units up 8% compared to a basically flat retail side.

Lower relative pricing aided the strength and is reflected in the margin. The company managed to reduce selling, general, and administrative (SG&A) expenses and improve efficiency on a per-unit basis, but gross margin impairment offset these gains. The takeaway is that gross profit declined by nearly 5%, net margin contracted by approximately 50 basis points despite an improvement in SG&A, and GAAP earnings declined.

The offset is that earnings per share (EPS) of $1.31 outpaced consensus by a wide 34-cent margin, providing sufficient cash flow to sustain operations and maintain balance sheet quality. CarMax's balance sheet carries debt, but it did not provide any red flags for investors.

The company does not provide specific guidance on operational metrics, but it did offer color on what to expect this year. As it stands, the focus is on improving sales and customer satisfaction, which will put pressure on margins. That trade-off is important for investors to watch. Lower asking prices can help rebuild unit volume, while continued investment in digital services may weigh on profitability until those efficiencies scale.

Among the critical Q1 takeaways, however, are the 84% of retail unit sales supported by digital capabilities and 14% online retail sales, with digital channels central to reducing time-to-close, improving customer outcomes, and supporting longer-term operating efficiency.

Analyst Sentiment Trends Key to CarMax’s Stock Price OutlookCarMax Stock Forecast Today12-Month Stock Price Forecast:
$47.73
-9.25% Downside

Reduce
Based on 20 Analyst Ratings

Current Price$52.60High Forecast$66.00Average Forecast$47.73Low Forecast$35.00CarMax Stock Forecast Details

Analyst sentiment is central to CarMax’s 2025 stock price decline and 2026 rebound.

After price target cuts and weaker coverage weighed on KMX in 2025, the tone in 2026 has shifted toward cautious optimism as investors evaluate the CEO transition and early signs of operational improvement.

Analyst activity since February 2026 has included initiations, reaffirmed targets, and, more recently, price target increases that have helped stabilize the consensus estimate.

The consensus price target is around $42, below the current share price but aligning with the technical price floor put in place last year, and is likely to advance amid operational improvements and strengthen the expected catalyst.

Institutional trends look more bullish despite mixed activity over the trailing 12-month period. Selling outweighed buying in parts of 2025, but activity in the first half of 2026 suggests renewed accumulation. More importantly, the periods of accumulation and distribution align with CarMax’s price action, revealing group buying on dips and market support at the lower end of its trading range.

The likely outcome is that KMX's downside is limited, and institutional support will strengthen and advance in subsequent quarters.

CarMax Catalysts: There Is More Than One Coming Down the PipeCarMax has several catalysts coming down the pike, centered on its upcoming earnings reports. The reports are expected to show improvements, including cash flow and future profitability. Among the catalysts is the capacity for capital return, which centers on share buybacks.

CarMax paused share repurchases in the latest quarter, but prior buybacks have still reduced the company’s share count over the past year. A resumption of repurchases could become a bullish catalyst if earnings stabilize. Management is also expected to provide more details on its turnaround strategy later this year.

Chart price action is not bullish following the release. The market for KMX stock is down more than 5% and may continue to decline in the near term. The caveat is that this market appears in the midst of a Double-Bottom Reversal, and the mid-June pullback is testing critical support.

Assuming support holds, KMX shares could advance this summer, potentially reaching $70 by early Fall. If not, a move to retest recent lows near $37.50 is probable—lower lows are not expected to come this year.

Should You Invest $1,000 in CarMax Right Now?Before you consider CarMax, you'll want to hear this.

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CarMax KMX is experiencing a decline in stock price despite surpassing expectations in its Q1 earnings report. The used-car retailer achieved a significant earnings per share (EPS) beat, its largest in recent quarters, with revenue rising 6.2% year-over-year to $8.01 billion. This marks a return to revenue growth, driven primarily by improved unit sales trends—both retail and wholesale. The positive results are attributed to competitive pricing, enhanced value, and effective early strategies under new CEO Keith Barr, indicating that the company's turnaround is gaining momentum.

Key Metrics: - Used comps decreased by 0.8% year-over-year, showing sequential improvement against a challenging +8.1% comparison from last year. - Combined retail and wholesale unit sales rose 3.3% to 392,357, with wholesale units up 8.4% and retail used units slightly higher year-over-year. Focus Areas: - CEO Keith Barr highlighted areas needing improvement, including core operations efficiency, retail pricing and selection, high costs, and a complex digital experience. - The digital-to-store transition is causing friction for customers, limiting KMX's ability to fully utilize its scale. Strategy: - KMX's turnaround strategy focuses on four key pillars: enhancing vehicle offerings, simplifying the customer experience, increasing transaction value, and operating more efficiently. - The plan aims to improve pricing, inventory access, conversion rates, CAF/EPP contributions, and reduce structural costs. Margins: - Competitive pricing pressures margins, although cost reductions are mitigating some earnings impact. - Total gross profit fell 4% year-over-year to $854 million, with gross margin contracting about 110 basis points to 10.7%. - Used retail gross profit per unit (GPU) decreased by $230 year-over-year to $2,177, which was better than management's previous expectation of a $300 decline. CAF/EPP: - CAF penetration rose by 150 basis points to 43.3%, supported by KMX's comprehensive financing initiatives. - The rollout of a redesigned EPP offering is anticipated to add approximately $35 per unit in incremental margin by FY27. KMX's recent Q1 results suggest that CEO Keith Barr is implementing effective strategies for the company's turnaround, although management acknowledges that recovery is still in its early stages. The stock's decline may be attributed to profit-taking after a significant rally leading up to the report, as investors anticipated strong performance. While used comps remain negative, the 0.8% decline reflects a sequential improvement against a tough comparison. The overall improvement in combined retail and wholesale units, along with returning revenue growth, indicates that competitive pricing and enhanced value are beginning to stimulate demand. However, GPU and margins continue to face pressure, raising questions about how long KMX will rely on pricing strategies to boost volume. Encouragingly, GPU pressure was less severe than expected, and cost-saving measures, along with higher CAF penetration and EPP redesign, provide KMX with tools to mitigate earnings impacts. The upcoming quarters will be crucial in determining if the improved unit trends and Barr's broader strategy can lead to consistent earnings growth.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Shares of CarMax (NYSE:KMX | KMX Price Prediction) stock are down 7% midday Wednesday near $48.30 after the used-car retailer reported fiscal Q1 2027 results before the open. The headline numbers cleared expectations comfortably, but the stock fell anyway.

Carvana (NYSE:CVNA) stock is down 8% to around $64.65 in sympathy, with no company-specific catalyst behind the move. The used-car retail group is treating CarMax’s margin commentary and credit data as a read-through to the entire sector.

The setup is unusual. CarMax delivered both an earnings and a revenue beat, but investors zeroed in on shrinking per-unit profitability and rising loan-loss reserves at CarMax Auto Finance (CAF). The “beat but fell” pattern is amplified because CarMax stock had rallied sharply heading into the report.

CarMax stock has been one of the year’s stronger rebound stories, climbing 35% year to date through Tuesday’s close at $52.11. That run set a high bar going into the release and left less margin for any operational disappointment.

Earnings Beat Masked by Margin and Credit Concerns CarMax reported Q1 FY2027 EPS of $1.31 versus consensus near $0.944, and revenue of $8.01 billion topped the $7.42 billion estimate. Both lines beat by a wide margin.

The quality of earnings cracked under the hood. Retail used vehicle gross profit per unit at CarMax fell $230 year over year to $2,177, reflecting deliberate pricing actions to drive volume. Total gross profit declined and net earnings fell 12% to $185.6 million.

Credit signals also tightened at CarMax. The allowance for loan losses rose to 3% of auto loans held for investment from 3% the prior quarter. CAF income slipped to $140.2 million, even as CAF penetration climbed to 43%, partly reflecting more Tier 2 exposure.

There were operational positives at CarMax. SG&A per total unit improved 7% to $1,619, and wholesale revenues rose 14% on higher wholesale unit volume. However, comparable-store used unit sales declined 1%, hinting at soft underlying demand despite the headline revenue beat.

This was also the first report under new CarMax CEO Keith Barr, three months into the role. Barr stated, “I came to CarMax because I saw a strong foundation, an award-winning, people-first culture, and significant potential to unlock growth.” Notably, Barr introduced a four-pillar framework and reiterated a $200 million SG&A (Selling, General, and Administrative expenses) exit-rate savings target by fiscal year-end 2027.

Carvana Sells Off in Sympathy Carvana has no company-specific news today. The 8% drop in Carvana shares reflects sector read-through from CarMax’s used-vehicle pricing pressure and credit-quality flag. The two stocks often trade together when sector narratives shift.

The selloff hits a stock that has already been choppy. Carvana stock was down 17% year to date heading into today, with a market cap near $45.94 billion. Carvana shares closed at $70.04 on Tuesday before today’s slide.

Carvana’s most recent quarter was strong, with Q4 2025 EPS of $4.22 and revenue of $5.6 billion, up 58% year over year. However, the company carries $4.83 billion in long-term debt, which makes used-auto credit-cycle headlines particularly impactful for Carvana shares. Bullish analyst notes earlier in 2026 have leaned on resilient securitization structures and rising used-car prices as offsets.

What to Watch Next CarMax already held its earnings call this morning at 8:00 a.m. ET, and management has flagged a formal Strategic Update planned for late fall to outline further milestones under Barr’s plan. That event could reshape the bull-bear debate on CarMax shares. The next scheduled earnings release for CarMax is Q2 FY2027 on September 29.

Carvana’s next scheduled catalyst is its Q2 2026 earnings release, expected in late July. Until then, Carvana stock may trade as a high-beta proxy for used-car retail sentiment, magnifying any peer moves on credit or pricing data.

Sector sentiment is the swing factor for both names. Should used-car credit data stabilize in coming weeks, today’s reaction could prove a one-day overshoot at CarMax and Carvana. A continued uptick in subprime auto delinquencies, on the other hand, may keep pressure on the group, particularly given Carvana’s leverage profile.

The takeaway is straightforward: CarMax beat estimates and still fell because investors prioritized per-unit margin compression and rising CAF reserves over the headline number. Investors can watch for whether today’s selloff in both names holds into the close, and whether further sector data points reinforce or ease the concerns flagged in the CarMax report.

CarMax, Inc. delivered a better than expected Q1, though results were boosted by a surprise credit release. Used car margins remain under pressure due to pricing concessions and consumers trading down to cheaper cars, though KMX has stabilized volumes. Financing results were better than expected though its increase in Tier 2 lending will likely drive incremental credit reserves.

By PYMNTS  |  June 17, 2026

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CarMax revenues are up, and CEO Keith Barr said he is focused on improving the company’s digital car shopping experience.

The used car dealer reported quarterly earnings Wednesday (June 17) that showed net revenues of $8 billion, a 6.2% increase. To continue this trajectory, Barr said during an earnings call that CarMax’s online presence needs to change.

“Our digital experience is too complex and not seamlessly connected to the in-person experience,” he said. “When a customer arrives at one of our stores, we do not make it as easy for them as it should be, given all the steps they have taken online.”

The process has added friction to the customer experience, which has affected conversion and kept CarMax from using its scale and store network, he said.

“We know exactly what needs to change, and we’re moving forward with urgency,” added Barr, who became CarMax’s CEO in March.

Management said during the earnings call that consumer behavior in the automotive sector has pivoted toward a demand for a hybrid experience, combining digital convenience and physical verification. The company said industry research and its own in-house findings bear this out.

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“Buying a car is one of the biggest financial decisions someone makes, and they have a strong desire to see, touch and test drive a vehicle that will be part of their daily lives for years to come,” Barr said.

To address this, management said CarMax is working to remove friction from the buying journey with upgrades like integrating AI assistants into the digital experience.

“We basically improved the entry point for our customers arriving from online ads,” Barr said. “We’ve made it easier to navigate our website to get toward prequalification and reserving a car. We’ve effectively shifted away from sticker prices to monthly payments.”

The company has also streamlined its web navigation to accelerate prequalification and vehicle reservations, making sure that the work a customer does at home translates instantly when they arrive at one of the company’s stores.

“Our stores reach 85% of the U.S. population, which gives us access to the largest total addressable market,” Barr said. “We expect more customers will visit our stores, and we will sell more cars.”

Barr joined CarMax after serving as CEO of InterContinental Hotels Group (IHG). In announcing his appointment earlier this year, CarMax said Barr modernized IHG’s technology, in part by developing a digital reservation system that improved the booking experience and let guests personalize their stays.

Carvana shares are sliding. Why is CVNA stock dropping? CarMax Beats Estimates But Margins SlideGross profit fell 4.4% to $854.4 million. Profit tied to retail units dropped 9.5%. Gross profit per retail used unit declined $230 from the prior year to $2,177. CarMax said the decline reflected pricing decisions aimed at supporting stronger sales momentum.

Margin Pressure Expected To ContinueDespite the earnings beat, CarMax warned that pressure on vehicle margins will likely persist as it prioritizes sales growth over margin preservation. Management reiterated that it expects lower gross profit per retail unit for the fiscal year and will continue adjusting prices to stay competitive.

The margin commentary from CarMax, a major peer in the used‑vehicle retail space, appears to be weighing on sentiment toward Carvana as well.

Critical Levels To Watch For Carvana StockMomentum is best evaluated through RSI. The indicator sits at 52.19, which is a neutral reading and consistent with a stock that is moving sideways rather than establishing a new direction. RSI measures how stretched buying or selling pressure has become. This level suggests the decline has not reached oversold conditions even as price tests lower areas.

Key Resistance: $73.00 This level sits near a round number and aligns with the longer moving average zone, including the 200‑day average at $73.61, which can cause rebounds to stall. Key Support: $61.00 — This is a nearby floor just above recent lows where buyers may attempt to stabilize the current downswing. CVNA Shares Are TumblingCVNA Price Action: Carvana shares were down 7.27% at $64.96 at the time of publication on Wednesday. The stock is trading near its 52-week low of $54.46, according to Benzinga Pro.

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CarMax (KMX +13.13%) stock lost ground in Wednesday's trading even though the company recently reported better-than-expected quarterly results. The company's share price fell roughly 9% in a daily session that saw the S&P 500 fall approximately 1.2%, and the Nasdaq Composite decline roughly 1.3%.

Before the market opened this morning, CarMax published results for the first quarter of its 2027 fiscal year -- a period that ended May 31. The company actually posted sales and earnings for fiscal Q1 that beat the market's expectations, but forward guidance wound up coming in below the market's targets.

Image source: Getty Images.

CarMax stock sank despite quarterly beats CarMax recorded earnings per share of $1.31 on revenue of $8.01 billion. The company's per-share profit topped the average analyst estimate by $0.37, and revenue came in roughly $580 million higher than the average target.

CarMax's sales rose roughly 6.1% year over year in fiscal Q1, and combined retail and wholesale unit sales were up 3.3% compared to the prior-year period. On the other hand, earnings per share actually declined 5.1% year over year compared to the profit of $1.38 per share recorded by the business in the prior-year period.

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What's next for CarMax? With its fiscal Q1 report, CarMax stated that it was seeing some pressure on selling, general, and administrative expenses -- but management also said that it expected to reach its target for roughly $200 million in category savings in the fiscal year. The company also said that it was on track for roughly $35 per unit in incremental extended protection plans (EPP) in the fiscal year and that it expected its national EPP redesign rollout to be completed in the current quarter. CarMax's fiscal Q1 results actually looked quite solid, but some investors were apparently looking for stronger forward guidance.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CarMax. The Motley Fool has a disclosure policy.

The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the “Fear” zone on Wednesday.

U.S. stocks settled lower on Wednesday, with the Dow Jones index falling more than 500 points during the session after the Federal Reserve announced its policy decision.

The Federal Reserve unanimously held the federal funds rate steady at 3.50%-3.75% on Wednesday, as widely expected, in the first policy meeting under new Fed Chair Kevin Warsh.

The Fed’s closely watched dot plot showed that several officials now expect interest rates to rise in 2026. The Fed penciled in higher inflation, a lower unemployment rate and one hike this year, marking a hawkish shift from the March dot plot, which had signaled one additional rate cut.

On the economic data front, U.S. retail sales rose 0.9% month-over-month in May, following a revised 0.4% gain in April and topping market estimates of 0.5%. U.S. pending home sales jumped 3.8% month-over-month in May, compared to a revised 0.3% gain in the previous month and topping market estimates of 0.8%.

CarMax Inc. (NYSE:KMX) reported better-than-expected earnings for the first quarter on Wednesday.

All sectors on the S&P 500 closed on a negative note, with communication services, consumer discretionary and real estate stocks recording the biggest losses on Wednesday.

The Dow Jones closed lower by around 507 points to 51,492.55 on Wednesday. The S&P 500 fell 1.21% to 7,420.10, while the Nasdaq Composite dipped 1.34% at 26,021.66 during Wednesday's session.

What Is CNN Business Fear & Greed Index?At a current reading of 32.7, the index remained in the “Fear” zone on Wednesday, versus a prior reading of 39.1.

The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.

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