Giverny Capital has exited its long-term holding in
CarMax (KMX), due to concerns over omnichannel payoff, sparking a need for investor action. This follows a recent share price slump and the sale of 46,778 shares by
Wealth Enhancement Advisory Services. CarMax's stock faces a valuation reset ahead of its Q3 update, with the company's valuation constantly fluctuating due to conflicting fair value estimates. Further, shares gapped down to $45.375 on 29 January. Amidst these challenging conditions, there are questions about the
value offering and the company's financial position. CarMax has faced a significant share price decline, underpinned by debt concerns and sales pressures, which however, saw a rebound as
Wall Street Zen upgraded its rating. Despite this, challenges persist, including the risks associated with
CEO's exit and high leverage, and
lawsuits over alleged 'temporary demand pull-forward' and loan portfolio risk.
Regulatory alerts have also been issued around CarMax. Despite these issues, the company's Q3 earnings showed promising signs, with CarMax beating its Q4 CY2025 sales expectations.
Carmax KMX News Analytics from Wed, 05 Nov 2025 08:00:00 GMT to Sat, 31 Jan 2026 17:38:35 GMT -
Rating -5
- Innovation -5
- Information 6
- Rumor -4
