New insider activity at CarMax ( (KMX) ) has taken place on October 3, 2025.
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Director Mitchell Steenrod recently made a significant investment in CarMax by purchasing 2,000 shares of the company’s stock, valued at $91,140. This move indicates a strong vote of confidence in CarMax’s future prospects.
Recent Updates on KMX stock
CarMax has experienced significant stock downgrades following its fiscal Q2 earnings report, which revealed weaker-than-expected results. Analysts from Seaport Research, Evercore ISI, and Oppenheimer have downgraded the stock, citing unclear paths to sustained growth, disappointing earnings, and a potentially prolonged strategic retrenchment. The company’s Q2 report showed a 5.4% decline in retail used unit sales and a decrease in net earnings per share, alongside a 6% drop in total net sales. Despite maintaining solid unit margins and launching a new brand campaign, CarMax faces challenges such as inventory mismatches and increased loan loss provisions. The company plans to reduce SG&A expenses by $150 million over the next 18 months to improve operational efficiency. Analysts highlight the need for better marketing to core consumers amid a potentially weakening demand backdrop.
Spark’s Take on KMX Stock
According to Spark, TipRanks’ AI Analyst, KMX is a Neutral.
CarMax’s overall stock score is driven by stable financial performance and reasonable valuation, but is significantly impacted by bearish technical indicators and challenges highlighted in the earnings call. The company’s high leverage and declining sales are key concerns, while strategic initiatives offer some optimism for future growth.
To see Spark’s full report on KMX stock, click here.
More about CarMax
YTD Price Performance: -43.28%
Average Trading Volume: 3,628,151
Technical Sentiment Signal: Sell
Current Market Cap: $6.76B