CarMax (KMX)

• Market cap: $12.1B
• 1 day: -0.23%
• 5 days: 3.09%
• 1 month: 5.92%
• 3 months: -2.27%
• 6 months: 4.95%
• Year to date: 2.40%
• 1 year: 14.87%
• 5 years: -20.38%
• 10 years: 42.76%
• Sector: Consumer Discretionary
• Industry: Auto Dealers & Gasoline Stations

About: CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.

Employees: 29,836

Fund manager confidence

Based on 2024 Q3 regulatory filings by fund managers ($100M+ AUM)

26% more first-time investments, than exits

New positions opened: 86 | Existing positions closed: 68

3% more funds holding

Funds holding: 696 [Q2] → 714 (+18) [Q3]

0% more funds holding in top 10

Funds holding in top 10: 22 [Q2] → 22 (+0) [Q3]

2% less capital invested

Capital invested by funds: $12.6B [Q2] → $12.3B (-$259M) [Q3]

6.97% less ownership

Funds ownership: 109.68% [Q2] → 102.71% (-6.97%) [Q3]

15% less repeat investments, than reductions

Existing positions increased: 232 | Existing positions reduced: 273

20% less call options, than puts

Call options by funds: $250M | Put options by funds: $312M

Research analyst outlook

15 Wall Street Analysts provided 1 year price targets over the past 3 months

• Low target: $65 17% downside
• Avg. target: $83 7% upside
• High target: $105 35% upside

15 analyst ratings

• positive: 8 53%
• neutral: 6 40%
• negative: 1 7%

Evercore ISI Group Michael Montani 81% 1-year accuracy 13 / 16 met price target	3% downside $76	In-Line Maintained	22 Oct 2024
Evercore ISI Group Michael Montani 81% 1-year accuracy 13 / 16 met price target	1% upside $79	In-Line Maintained	17 Oct 2024
RBC Capital Steven Shemesh 70% 1-year accuracy 30 / 43 met price target	5% upside $82	Outperform Reiterated	16 Oct 2024
Wedbush Seth Basham 58% 1-year accuracy 46 / 80 met price target	22% upside $95	Outperform Reiterated	16 Oct 2024
Needham Chris Pierce 47% 1-year accuracy 28 / 59 met price target	15% upside $90	Buy Reiterated	16 Oct 2024