CarMax Falls as Investors Weigh Strong Sales Against Margin and Credit Risks

CarMax (KMX) is down 4.3% today. Here is some analysis on what might have caused this price movement.

Analysis: The most likely driver is investor concern that CarMax’s recent sales rebound is still coming with margin pressure and added credit risk in its finance arm, rather than a new negative headline today. In the absence of a clear same-day catalyst, this move could also reflect traders refocusing on lower per-unit profitability and loan-loss exposure ahead of the company’s November 3 strategic update. ([media.carmax.com](https://media.carmax.com/press-releases/news-release/2026/CarMax-Reports-Second-Quarter-Fiscal-2027-Results/default.aspx))

Details:

In its September 29 fiscal second-quarter release, CarMax posted strong top-line results, including 19.5% revenue growth, 14.7% combined retail and wholesale unit growth, and diluted EPS of $1.16. ([media.carmax.com](https://media.carmax.com/press-releases/news-release/2026/CarMax-Reports-Second-Quarter-Fiscal-2027-Results/default.aspx))

Those gains were partly offset by weaker per-unit profitability, with retail gross profit per used unit falling by $111 and wholesale gross profit per unit falling by $135 as pricing stayed aggressive. ([media.carmax.com](https://media.carmax.com/press-releases/news-release/2026/CarMax-Reports-Second-Quarter-Fiscal-2027-Results/default.aspx))

CarMax Auto Finance expanded further into Tier 2 lending, financing 22% of that volume, while its allowance for loan losses rose to 3.07% of auto loans held for investment. ([media.carmax.com](https://media.carmax.com/press-releases/news-release/2026/CarMax-Reports-Second-Quarter-Fiscal-2027-Results/default.aspx))

Management has also been in the middle of a broader strategy reset, including leadership changes announced on September 29 and a strategic update webcast scheduled for November 3. ([media.carmax.com](https://media.carmax.com/press-releases/news-release/2026/CarMax-Announces-Leadership-Appointments-to-Further-Unify-End-to-End-Customer-Experience-Advance-Strategy-for-Growth/default.aspx?utm_source=openai))

Sources:

CarMax, SEC, Investing.com

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$KMX Insider Trading Activity

$KMX insiders have traded $KMX stock on the open market 2 times in the past 6 months. Of those trades, 2 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $KMX stock by insiders over the last 6 months:

KEITH BARR (President and CEO) purchased 9,400 shares for an estimated $498,247
PETER J BENSEN purchased 2,500 shares for an estimated $130,500

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

$KMX Hedge Fund Activity

We have seen 227 institutional investors add shares of $KMX stock to their portfolio, and 324 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

NORGES BANK removed 3,455,184 shares (-83.8%) from their portfolio in Q2 2026, for an estimated $182,744,681
AQR CAPITAL MANAGEMENT LLC removed 3,437,708 shares (-34.2%) from their portfolio in Q2 2026, for an estimated $181,820,376
STARBOARD VALUE LP removed 2,994,924 shares (-48.3%) from their portfolio in Q2 2026, for an estimated $158,401,530
HAWK RIDGE CAPITAL MANAGEMENT LP added 2,834,458 shares (+inf%) to their portfolio in Q2 2026, for an estimated $149,914,483
APOLLO MANAGEMENT HOLDINGS, L.P. removed 2,158,456 shares (-52.1%) from their portfolio in Q2 2026, for an estimated $114,160,737
CANADA PENSION PLAN INVESTMENT BOARD added 1,908,090 shares (+693.8%) to their portfolio in Q2 2026, for an estimated $100,918,880
AMERICAN CENTURY COMPANIES INC added 1,859,355 shares (+133.7%) to their portfolio in Q2 2026, for an estimated $98,341,285

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$KMX Congressional Stock Trading

Members of Congress have traded $KMX stock 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $KMX stock by members of Congress over the last 6 months:

REPRESENTATIVE GILBERT RAY CISNEROS, JR. purchased up to $15,000 on 08/19.

To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard. You can access data on congressional stock trades through the Quiver Quantitative API Congress trades endpoint.

$KMX Analyst Ratings

Wall Street analysts have issued reports on $KMX in the last several months. We have seen 0 firms issue buy ratings on the stock, and 1 firms issue sell ratings.

Here are some recent analyst ratings:

B of A Securities issued a "Underperform" rating on 06/18/2026

To track analyst ratings and price targets for $KMX, check out Quiver Quantitative's $KMX forecast page.

$KMX Price Targets

Multiple analysts have issued price targets for $KMX recently. We have seen 10 analysts offer price targets for $KMX in the last 6 months, with a median target of $45.0.

Here are some recent targets:

Joseph Spak from UBS set a target price of $57.0 on 06/23/2026
Daniela Haigian from Morgan Stanley set a target price of $44.0 on 06/23/2026
John Babcock from Barclays set a target price of $37.0 on 06/22/2026
John Murphy from B of A Securities set a target price of $45.0 on 06/18/2026
Steven Shemesh from RBC Capital set a target price of $45.0 on 06/18/2026
Craig Kennison from Baird set a target price of $55.0 on 06/18/2026
David Bellinger from Mizuho set a target price of $43.0 on 06/18/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.