CarMax Slides as Investors Reassess Margin Pressure After Earnings Pop

CarMax (KMX) is down 7.0% today. Here is some analysis on what might have caused this price movement.

Analysis: The most likely driver is that investors looked past CarMax’s strong quarterly earnings beat and focused instead on margin pressure and some forward profit headwinds. This could also be a post-earnings reversal after the stock opened sharply higher, as the market digested weaker gross profit per vehicle and a softer finance outlook. ([investors.carmax.com](https://investors.carmax.com/news-and-events/news/news-details/2026/CarMax-Reports-Second-Quarter-Fiscal-2027-Results/default.aspx))

Details:

CarMax reported fiscal second-quarter revenue up 19.5% to $7.9 billion and diluted EPS of $1.16, showing strong sales momentum in used and wholesale vehicles. ([investors.carmax.com](https://investors.carmax.com/news-and-events/news/news-details/2026/CarMax-Reports-Second-Quarter-Fiscal-2027-Results/default.aspx))

Retail gross profit per used unit fell by $111 to $2,105, and wholesale gross profit per unit dropped by $135 to $858, reflecting pricing actions that helped volumes but pressured per-unit profitability. ([investors.carmax.com](https://investors.carmax.com/news-and-events/news/news-details/2026/CarMax-Reports-Second-Quarter-Fiscal-2027-Results/default.aspx))

Management said CarMax Auto Finance income for fiscal 2027 is expected to be slightly lower than fiscal 2026, even after this quarter’s gain, which may have tempered enthusiasm about earnings quality. ([fool.com](https://www.fool.com/earnings/call-transcripts/2026/09/30/carmax-kmx-q2-2027-earnings-call-transcript/))

The stock opened at $59.14, traded as high as $59.65, and then fell to about $55.11 intraday, suggesting early post-earnings optimism gave way to selling pressure as investors reassessed the outlook.

Sources:

CarMax Investor Relations, The Motley Fool, 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 215 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
David Bellinger from Mizuho set a target price of $43.0 on 06/18/2026
Scot Ciccarelli from Truist Securities set a target price of $50.0 on 06/18/2026
Michael Montani from Evercore ISI Group set a target price of $58.0 on 06/18/2026
Rajat Gupta from JP Morgan set a target price of $38.0 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.