Core Viewpoint - CarMax, Inc. is under investigation for potential violations of federal securities laws, following a significant decline in sales and earnings attributed to a temporary demand boost from U.S. tariffs on cars [1][2][3]. Group 1: Investigation Details - Bleichmar Fonti & Auld LLP is leading the investigation into CarMax for possible securities law violations [1]. - The investigation is prompted by discrepancies between CarMax's claims of strong demand and the reality of declining sales figures [2]. Group 2: Financial Performance - In fiscal Q2 2025, CarMax reported a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [3]. - The company's net earnings for Q2 were approximately $95.4 million, down from $132.8 million in the previous year, indicating a significant drop in profitability [3]. - Following the earnings report, CarMax's stock price fell by $11.45 per share, or roughly 20%, from $57.05 to $45.60 [3].

Core Insights - Bragar Eagel & Squire, P.C. is investigating potential claims against CarMax, Inc. for possible violations of federal securities laws and unlawful business practices [1][2] Investigation Details - The investigation is focused on whether CarMax has engaged in actions that could harm stockholders, particularly in light of recent financial performance [1][2] Financial Performance - On April 10, 2025, CarMax reported its fourth quarter and fiscal year 2025 results, missing consensus estimates and removing long-term revenue, unit sales, and market share goals due to macroeconomic factors, leading to a stock price drop of $13.61 (17%) to $66.45 [6] - On September 25, 2025, CarMax disclosed significant year-over-year declines in revenue and profit, including a 6.0% revenue decline, a 7.2% decline in total retail used vehicle revenues, and a 5.6% decline in total gross profit, attributed to inventory adjustments and a $71.3 million increase in loan loss provisions, resulting in a further stock price drop of $11.45 (20.1%) to $45.60 [6]

CONTACT: , /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) is currently investigating potential violations of the federal securities laws on behalf of investors of CarMax, Inc. (NYSE: KMX) ("CarMax"). On September 25, 2025, CarMax released its second quarter fiscal year 2026 financial results, disclosing significant revenue and profit declines year over year, including a revenue decline of 6.0%, total retail used vehicle revenues decline of 7.2%, and a total gross profit d ...

Core Insights - CarMax shares fell 26.9% in September, significantly underperforming the market [1] - The company reported disappointing earnings, with a revenue decline of 6% to $6.59 billion and a 24.7% drop in earnings per share to $0.64, both missing analyst expectations [3] - Management is implementing cost-cutting measures aiming for $150 million in reductions over the next 18 months and launched a new marketing campaign to enhance competitiveness [4][5] Financial Performance - CarMax's second quarter results showed a revenue decline of 6% to $6.59 billion and earnings per share down 24.7% to $0.64, both figures falling short of expectations [3] - The stock is currently trading at 14 times this year's earnings estimates and 11.8 times next year's expectations, suggesting it may be undervalued [8] Market Environment - The company faces challenges from a declining consumer confidence index, which fell to 94.2 from 97.8, below the expected 96.0 [6] - Economic conditions, including a weakening job market and high inflation, may lead consumers to delay big-ticket purchases like automobiles [7] Strategic Initiatives - Management is optimistic about new initiatives, including cost-cutting and a marketing campaign titled "Wanna Drive?" aimed at improving market position against online competitors [4][5] - Despite the current challenges, CarMax may be viewed as a value stock for investors looking for alternatives to high-tech valuations [10]

People don't like to throw money into a sinking ship , and by that logic, insider buys in Wall Street can be an easy way to gauge how well a company might do in the coming quarters. ...

Group 1 - The article discusses the worst-performing stocks in the S&P 500 index for September, highlighting significant declines in share prices [1][8]. - CarMax experienced a 24.8% drop in stock value due to disappointing second-quarter results, with revenue and profits down by 25% year over year, reflecting decreased consumer enthusiasm for car purchases [3]. - FactSet Research Systems saw a 22.3% decline, attributed to results that fell below analyst expectations [4]. - Kenvue's stock fell by 21.9%, influenced by negative public perception regarding Tylenol's alleged link to autism following statements from public figures [5]. - Deckers Outdoor's shares decreased by 17.5%, impacted by concerns over tariffs and economic uncertainty, along with disappointing earnings reports [6]. - Synopsys experienced a 16.7% decline due to weakened demand from a major customer and previous export restrictions, which have since been lifted [7]. Group 2 - Despite the declines in these stocks, the S&P 500 index gained 3.5% in September, indicating a broader market resilience [8]. - The article suggests that while some stocks may have fallen due to temporary issues, they could present buying opportunities if the market has overreacted and the company's future remains promising [8][9]. - The Motley Fool Stock Advisor analyst team has identified ten stocks they believe are better investment options than CarMax, indicating a shift in investor focus [10].

NEW YORK, Oct. 08, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into CarMax, Inc. (NYSE: KMX) for potential violations of the federal securities laws. If you invested in CarMax, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/carmax-inc-class-action. Why Is CarMax being Investigated?CarMax sells used cars. During the relevant period, the Company touted the strong and sustainable demand for its cars, d ...

Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In CarMax (KMX) To Contact Him Directly To Discuss Their Options If you purchased or acquired stock in CarMax and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Marion Passmore directly at (212) 355-4648. Click here to participate in the action. NEW YORK, Oct. 07, 2025 (GLOBE NEWSWIRE) -- What’s Happening: Bragar Eagel & Squire, P.C., a nationally recognized ...

Core Viewpoint - CarMax, Inc. is under investigation for potential violations of federal securities laws, following a significant decline in sales and earnings attributed to a temporary demand boost from U.S. tariffs on cars [1][2][3] Group 1: Investigation Details - Bleichmar Fonti & Auld LLP is leading the investigation into CarMax for possible securities law violations [1] - The investigation is prompted by discrepancies between CarMax's claims of strong demand and the reality of declining sales figures [2] Group 2: Financial Performance - In fiscal Q2 2025, CarMax reported a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [3] - The company's net earnings for Q2 were approximately $95.4 million, down from $132.8 million in the previous year, indicating a significant drop in profitability [3] - Following the earnings report, CarMax's stock price fell by $11.45 per share, or about 20%, from $57.05 to $45.60 [3]

Group 1 - CarMax, Inc. is under investigation for potential violations of federal securities laws by Bleichmar Fonti & Auld LLP [1] - The investigation stems from claims that CarMax misrepresented the sustainability of demand for its used cars, which was temporarily boosted by U.S. tariffs [2] - Following the announcement of disappointing Q2 2025 earnings, CarMax experienced significant stock declines, with a 20% drop from $57.05 to $45.60 per share [3] Group 2 - In Q2 2025, CarMax reported a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [3] - The company's net earnings for Q2 were approximately $95.4 million, down from $132.8 million in the previous year, attributed to a "pull forward" in demand due to tariff announcements [3]