CarMax (KMX) stock experienced a turbulent period characterized by lawsuits, leadership changes, significant third quarter earnings swings and overall business strategy changes. Despite Q3 earnings surpassing expectations, the company's revenue declined. The used car retailer's decisions to lower prices to boost sales did not prevent a 47% profit drop, causing concerns among investors and analysts. The company is facing various lawsuits over alleged \"temporary demand pull-forward\" and loan portfolio risk. With new leadership in place following a significant sales decline and amidst a broad margin reset, CarMax is said to be in a speculative position for the future. As part of the business transformation, CarMax announced a $150M cost-cutting plan. Despite this, the business value has seen various adjustments from different investment banks, with price targets set as low as $24 by Barclays and as high as $31 from B of A Securities.
Carmax KMX News Analytics from Sun, 16 Nov 2025 08:00:00 GMT to Sat, 20 Dec 2025 23:41:25 GMT -
Rating -3
- Innovation 1
- Information 5
- Rumor -7
