CarMax slides after Q4 GAAP loss, margin pressure, and credit provisioning weigh on sentiment

CarMax, Inc. (KMX) is down 13.1% today. Here is some analysis on what might have caused this price movement.

Analysis: The drop appears tied to CarMax’s fiscal Q4 2026 earnings release, which showed a GAAP net loss and weaker year-over-year profitability metrics even as some adjusted figures held up better. Investors also seemed to focus on ongoing gross profit pressure and the near-term drag from loan-loss provisioning in its finance segment, plus uncertainty around the company’s transition initiatives.

Details:

CarMax posted fiscal Q4 net sales and operating revenues of about $5.95 billion, slightly lower than the prior-year quarter.

The quarter produced a GAAP net loss of roughly $121 million (about $(0.85) per diluted share), versus positive earnings in the year-ago period; adjusted EPS was positive at $0.34.

Total gross profit declined year over year, with used-vehicle, wholesale, and other gross profit each lower than the prior-year quarter.

Provision for loan losses in the quarter was about $73.9 million (up from $68.3 million a year earlier), which management noted as a near-term headwind given upfront lifetime-loss reserving.

Sources:

CarMax Investor Relations, Zacks Investment Research, Investing.com

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 249 institutional investors add shares of $KMX stock to their portfolio, and 399 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

BLACKROCK, INC. added 6,367,957 shares (+55.5%) to their portfolio in Q4 2025, for an estimated $246,057,858
SRS INVESTMENT MANAGEMENT, LLC added 5,327,603 shares (+1717.5%) to their portfolio in Q4 2025, for an estimated $205,858,579
APOLLO MANAGEMENT HOLDINGS, L.P. added 5,046,474 shares (+inf%) to their portfolio in Q4 2025, for an estimated $194,995,755
AQR CAPITAL MANAGEMENT LLC added 4,780,903 shares (+151.8%) to their portfolio in Q4 2025, for an estimated $184,734,091
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

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$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 3 firms issue sell ratings.

Here are some recent analyst ratings:

JP Morgan issued a "Underweight" rating on 12/19/2025
B of A Securities issued a "Underperform" rating on 12/19/2025
Barclays issued a "Underweight" rating on 12/19/2025

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 11 analysts offer price targets for $KMX in the last 6 months, with a median target of $36.0.

Here are some recent targets:

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
John Babcock from Barclays set a target price of $28.0 on 01/21/2026
John Murphy from B of A Securities set a target price of $31.0 on 12/19/2025
Scot Ciccarelli from Truist Securities set a target price of $37.0 on 12/19/2025
Rajat Gupta from JP Morgan set a target price of $28.0 on 12/19/2025

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.