CarMax (KMX)

• Market cap: $12.7B
• 1 day: -3.49%
• 5 days: -6.31%
• 1 month: 3.91%
• 3 months: 2.46%
• 6 months: 0.15%
• Year to date: 1.71%
• 1 year: 16.98%
• 5 years: -18.38%
• 10 years: 22.19%
• 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 Q4 regulatory filings by fund managers ($100M+ AUM)

26% more first-time investments, than exits

New positions opened: 92 | Existing positions closed: 73

22% more call options, than puts

Call options by funds: $197M | Put options by funds: $161M

11% more capital invested

Capital invested by funds: $12.4B [Q3] → $13.7B (+$1.35B) [Q4]

4% more funds holding in top 10

Funds holding in top 10: 23 [Q3] → 24 (+1) [Q4]

3.37% more ownership

Funds ownership: 103.22% [Q3] → 106.59% (+3.37%) [Q4]

2% less funds holding

Funds holding: 729 [Q3] → 714 (-15) [Q4]

12% less repeat investments, than reductions

Existing positions increased: 238 | Existing positions reduced: 271

Research analyst outlook

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

• Low target: $72 13% downside
• Avg. target: $88 6% upside
• High target: $103 25% upside

7 analyst ratings

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

Needham Chris Pierce 59% 1-year accuracy 44 / 75 met price target	22% upside $101	Buy Maintained	3 Feb 2025
JP Morgan Rajat Gupta 78% 1-year accuracy 29 / 37 met price target	13% downside $72	Underweight Maintained	20 Dec 2024
Truist Securities Scot Ciccarelli 67% 1-year accuracy 46 / 69 met price target	7% upside $88	Hold Maintained	20 Dec 2024
RBC Capital Steven Shemesh 69% 1-year accuracy 35 / 51 met price target	25% upside $103	Outperform Maintained	20 Dec 2024
Mizuho David Bellinger 49% 1-year accuracy 17 / 35 met price target	3% downside $80	Neutral Maintained	20 Dec 2024