CarMax (KMX)

• Market cap: $12.1B
• 1 day: -0.89%
• 5 days: 1.67%
• 1 month: -5.03%
• 3 months: 5.09%
• 6 months: -4.78%
• Year to date: -2.81%
• 1 year: 16.36%
• 5 years: -17.50%
• 10 years: 25.68%
• 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)

75% more first-time investments, than exits

New positions opened: 91 | Existing positions closed: 52

5% more funds holding in top 10

Funds holding in top 10: 22 [Q2] → 23 (+1) [Q3]

4% more funds holding

Funds holding: 696 [Q2] → 727 (+31) [Q3]

2% less capital invested

Capital invested by funds: $12.6B [Q2] → $12.4B (-$240M) [Q3]

6.81% less ownership

Funds ownership: 110.02% [Q2] → 103.21% (-6.81%) [Q3]

16% less repeat investments, than reductions

Existing positions increased: 234 | Existing positions reduced: 277

22% less call options, than puts

Call options by funds: $250M | Put options by funds: $321M

Research analyst outlook

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

• Low target: $72 9% downside
• Avg. target: $87 10% upside
• High target: $103 30% upside

7 analyst ratings

• positive: 2 29%
• neutral: 4 57%
• negative: 1 14%

JP Morgan Rajat Gupta 77% 1-year accuracy 24 / 31 met price target	9% downside $72	Underweight Maintained	20 Dec 2024
Truist Securities Scot Ciccarelli 61% 1-year accuracy 43 / 70 met price target	11% upside $88	Hold Maintained	20 Dec 2024
RBC Capital Steven Shemesh 69% 1-year accuracy 36 / 52 met price target	30% upside $103	Outperform Maintained	20 Dec 2024
Mizuho David Bellinger 42% 1-year accuracy 14 / 33 met price target	1% upside $80	Neutral Maintained	20 Dec 2024
Needham Chris Pierce 55% 1-year accuracy 39 / 71 met price target	24% upside $98	Buy Maintained	20 Dec 2024