CarMax falls 6.4% as Q1 results highlight margin compression and lower year-over-year earnings

CarMax (KMX) is down 6.4% today. Here is some analysis on what might have caused this price movement.

Analysis: The move appears tied to the company’s newly released quarterly results, which showed higher revenue and unit volumes but weaker profitability metrics versus last year. Even with cost controls, softer gross profit per vehicle and lower year-over-year net income can weigh on sentiment, especially after a strong recent run in the shares.

Details:

The company’s first-quarter filing showed net sales and operating revenues rising to about $8.0 billion, while net earnings declined year over year and diluted EPS fell to $1.31 from $1.38.

Used-vehicle profitability looked pressured, with retail used gross profit per unit down by about $230 to roughly $2,177, implying more competitive pricing and/or higher vehicle cost dynamics.

The company also disclosed a new $500 million term loan facility (maturing in 2029), which may have added to investor focus on leverage and interest expense sensitivity.

This could also be a “sell-the-news” reaction after recent strength in the stock, as investors reassess the pace of margin recovery in the used-car cycle.

Sources:

U.S. SEC (EDGAR), CarMax Investor Relations, Trefis

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

$KMX Hedge Fund Activity

We have seen 267 institutional investors add shares of $KMX stock to their portfolio, and 437 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

STARBOARD VALUE LP added 6,201,362 shares (+inf%) to their portfolio in Q1 2026, for an estimated $257,852,631
FIDUCIARY MANAGEMENT INC /WI/ removed 3,249,561 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $125,563,037
D. E. SHAW & CO., INC. added 2,858,518 shares (+364.4%) to their portfolio in Q4 2025, for an estimated $110,453,135
TURTLE CREEK ASSET MANAGEMENT INC. removed 2,707,477 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $104,616,911
TWO SIGMA INVESTMENTS, LP added 2,379,071 shares (+80.2%) to their portfolio in Q1 2026, for an estimated $98,921,772
INVESCO LTD. removed 2,289,683 shares (-66.8%) from their portfolio in Q4 2025, for an estimated $88,473,351
COOKE & BIELER LP removed 2,241,359 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $86,606,111

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 Price Targets

Multiple analysts have issued price targets for $KMX recently. We have seen 7 analysts offer price targets for $KMX in the last 6 months, with a median target of $43.0.

Here are some recent targets:

Scot Ciccarelli from Truist Securities set a target price of $47.0 on 06/16/2026
John Babcock from Barclays set a target price of $31.0 on 06/12/2026
Rajat Gupta from JP Morgan set a target price of $37.0 on 06/11/2026
Joseph Spak from UBS set a target price of $42.0 on 05/27/2026
Michael Montani from Evercore ISI Group set a target price of $45.0 on 04/10/2026
Jeff Lick from Stephens & Co. set a target price of $43.0 on 04/02/2026
Craig Kennison from Baird set a target price of $48.0 on 02/18/2026

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.