NEWTOWN, Pa. , Oct. 3, 2025 /PRNewswire/ -- Edelson Lechtzin LLP, a national class action law firm, is investigating potential violations of the federal securities laws involving CarMax, Inc. (NYSE: KMX), resulting from allegations of providing potentially misleading business information to the investing public. ...

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against CarMax, Inc. for possible violations of federal securities laws and unlawful business practices affecting stockholders [1][2]. Investigation Details - The investigation is focused on whether CarMax has engaged in practices that may have harmed investors, particularly in light of recent financial disclosures [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 per share [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, causing shares to fall by $11.45 (20.1%) to $45.60 per share [6].

Core Viewpoint - Morgan Stanley has reduced its price target on CarMax shares but still sees potential for upside despite the competitive pressure from Carvana [1] Company Summary - CarMax's shares have been downgraded by Morgan Stanley, indicating a cautious outlook on the company's stock performance [1] - Despite the price target cut, Morgan Stanley believes that CarMax has opportunities for growth in the market [1] Industry Summary - The used car market is experiencing increased competition, particularly from Carvana, which poses challenges for CarMax [1] - The competitive landscape is evolving, and companies in the used car sector must adapt to maintain market share [1]

This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. Dive Brief: CarMax expects its AI and technology investments will help drive at least $150 million in cost savings over the next 18 months, executives said during the company’s Q2 2026 earnings call last week. Current AI projects enhance customer experience and improve efficiency, according to EVP and CFO Enrique Mayor-Mora, pointing to the AI-powered virtual assistant Sk ...

INVESTIGATION DETAILS: The investigation focuses on whether the Company issued misleading statements and/or failed to disclose information pertinent to investors. CarMax reported disappointing financial results for Q2 2025 on September 25, 2025. The Company reported a 6.3% drop in comparable store used unit sales, and a decline in net earnings for the quarter. CarMax shares fell roughly 20% in response to its disappointing results. Accessibility StatementSkip Navigation If you are a shareholder who suffered ...

NEW YORK, Oct. 02, 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 ...

Core Insights - CarMax (KMX) shares have dropped by 23% in the past five trading days, reaching approximately $44 per share, and are down over 40% year-to-date, indicating potential undervaluation [3][4] - The company has a robust business model with an extensive national store network and an expanding digital presence, providing network effects that smaller rivals cannot replicate [4] - The recent decline in stock price is attributed to unexpectedly weak Q2 FY'26 results, with revenues decreasing by 6% year-over-year to $6.59 billion and earnings per share falling to $0.64 from $0.85 [5] - The fundamental outlook for CarMax appears bleak, with revenues decreasing at an average rate of -7.4% over the last three years, contrasting with the S&P 500's growth of 5.3% [6] - Financial stability is a concern, as CarMax carries $19 billion in debt against a market cap of $6.7 billion, resulting in a high debt-to-equity ratio of 286% [6] - Potential positive developments include anticipated interest rate cuts that could positively impact the used car market and aggressive cost management strategies that may bolster profitability [7]

NEW YORK, Sept. 30, 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, ...

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, Sept. 29, 2025 (GLOBE NEWSWIRE) -- What’s Happening: Bragar Eagel & Squire, P.C., a nationally recognized ...

LOS ANGELES--(BUSINESS WIRE)--CarMax, Inc. Investigated for Securities Fraud Violations – Contact the DJS Law Group to Discuss Your Rights – KMX. ...